28/02/2026
*📩 Income Tax Notices in Pakistan – Sections, Meaning & How to Respond*
Receiving an income tax notice from the Federal Board of Revenue (FBR) does not always mean penalty or fraud. It often means clarification, reconciliation, or compliance verification is required.
Let’s understand the most common sections under the Income Tax Ordinance, 2001:
*🔎 Section 114 – Return of Income*
Meaning: Filing of annual income tax return is mandatory.
*Applied When:*
You are a registered taxpayer but haven’t filed your return.
You were required to file but failed to do so.
Requirement: Submit pending return with wealth statement.
*Procedure:*
Log in to IRIS portal
Complete return + wealth reconciliation
Pay tax (if any)
Submit before due date or in response to notice
*📊 Section 122 – Amendment of Assessment*
Meaning: FBR can amend your return if discrepancies are found.
*Applied When:*
Mismatch in withholding tax
Under-declared income
Incorrect claims
*Requirement:* Provide supporting documents (bank statements, invoices, contracts).
*Procedure:*
Review notice carefully
Prepare reconciliation
Submit reply with documentary evidence
Attend hearing if required
*🧾 Section 176 – Notice to Obtain Information*
Meaning: FBR requests books of accounts or financial records.
*Applied When:*
Audit selection
Suspicious transactions
Risk-based review
*Requirement:*
Books of accounts
Bank statements
Sales & purchase records
*Procedure:*
Organize complete records
Respond within given timeline
Submit through IRIS or appear before officer
*🏦 Section 161 – Failure to Deduct/Deposit Withholding Tax*
Meaning: Applied to withholding agents who failed to deduct or deposit tax.
*Applied When:*
Non-deduction of tax
Late deposit of withholding tax
*Requirement:*
Tax payment challans
Withholding statements
*Procedure:*
Calculate short deduction
Deposit tax + default surcharge
Submit compliance reply
*⚠️Important Points*
✔️ Always respond within the deadline
✔️ Never ignore a notice
✔️ Keep proper documentation
✔️ Take professional consultation if required
*Timely response = Avoid penalties + Maintain Active Filer Status.*
