Day 26: How to Handle/Respond to FBR Notices or Audits in Pakistan
How to Handle FBR Notices or Audits in Pakistan
Response Guide to Section 122(5), 176, and More
Receiving a notice or audit request from the Federal Board of Revenue (FBR) can be intimidating—but with the right strategy and awareness of tax laws, you can respond effectively and avoid penalties.
In this post, we’ll break down the most common FBR notices, what they mean, and how to respond within the legal timeframe.
📩 Types of FBR Notices & How to Respond
🧾 Section 122(5): Amendment of Assessment
This notice is issued when FBR believes your return is incomplete, incorrect, or underreported. It may propose an amended assessment of your taxable income.
Action Required:
- Respond within 30 days of receipt.
- Submit documents supporting your original declaration (income proof, expense details, bank records, etc.).
- If satisfied, FBR will drop the amendment or issue a revised demand.
📄 Section 176: Notice to Obtain Information or Evidence
FBR uses this notice to request:
- Business records
- Bank statements
- Contracts or invoices
- Wealth statements and tax return data
Action Required:
- Submit the required documents within the deadline (usually 7–15 days).
- Avoid delay—non-response leads to penalties under Section 182.
🧮 Section 214C: Audit Selection Notice
If you are selected for audit via random balloting or risk-based profiling, FBR will issue an audit initiation notice.
Action Required:
- Submit all records and explanations for the tax year in question.
- Consider engaging a tax consultant to prepare a professional audit file.
🚨 Section 114(4): Non-Filing of Return
Issued to non-filers or late filers. This notice warns that legal action may follow if a return isn’t submitted promptly.
Action Required:
- File your return immediately.
- Respond through IRIS with an explanation and attach return acknowledgement.
🕒 Response Timeline & Best Practices
- Always respond within the due date mentioned on the notice.
- Keep all communication through the IRIS portal or in writing.
- Maintain a record of all documents submitted, replies sent, and FBR acknowledgments.
⚖️ What If You Ignore FBR Notices?
Failure to respond can result in:
- Penalties of Rs. 5,000 to Rs. 50,000
- Forced assessment by FBR without your input
- Exclusion from ATL
- Freezing of bank accounts or legal prosecution
✅ Tips for Avoiding FBR Notices
- Always file on time.
- Declare all sources of income.
- Reconcile wealth and income correctly.
- Keep all supporting documents organized for at least 6 years.
🔐 MTF & Co. | FBR Notice & Audit Handling Services 
At MTF & Co. Tax and Corporate Advisory, we provide expert services to help clients:
- Respond to FBR notices professionally
- Handle audits and prepare required documentation
- Amend or revise returns, if needed
- Liaise with FBR officers on your behalf
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