FBR Notice Response
& Tax Appeals

FBR issues notices for various reasons, including failure to file a tax return (Section 114), non-filing of wealth statement (Section 116), discrepancies in declared income versus actual assets, information required for an audit (Section 176), or default on advance tax payments.

Do not ignore it. Note the deadline mentioned in the notice, gather the requested documents (bank statements, property documents, etc.), and contact a tax lawyer immediately to draft a formal legal reply via the IRIS portal before the due date.

Ignoring an FBR notice leads to ex-parte (one-sided) assessment. FBR will assume maximum tax liability on your undeclared assets or transactions, levy heavy penalties, and potentially issue orders to freeze your bank accounts to recover the demanded tax.

A notice under Section 114(4) of the Income Tax Ordinance 2001 is issued when you were legally required to file a tax return but failed to do so. The notice formally directs you to file your return within a specified period.

A notice under Section 176 is an 'Information and Evidence' notice. The Commissioner of Inland Revenue uses this to demand specific documents, bank statements, or explanations regarding your financial transactions to verify tax compliance.

Section 122 notices are issued when FBR believes your filed tax return contains errors, concealed income, or incorrect tax credits. It gives you an opportunity to explain your position before FBR amends your return and demands additional tax.

While technically possible, it is highly discouraged. FBR notices require replies grounded in specific sections of the Income Tax Ordinance and relevant case laws. Incorrectly phrased responses can be used against you to levy higher taxes.

The response deadline is always specified in the notice itself, usually ranging from 7 to 15 days. If you need more time, a formal application for an extension (adjournment) must be filed through the IRIS portal before the deadline expires.

Not necessarily. A well-drafted legal response with supporting documents often satisfies the assessing officer, leading to the notice being dropped. Ignoring it, however, almost guarantees an audit or default assessment.

If the notice proposes a penalty, a strong legal defense explaining reasonable cause for default (e.g., severe illness, systemic IRIS failure) can convince the officer to waive or reduce the penalty under the law.

Yes. Once an account is frozen, we immediately file an appeal before the Commissioner Inland Revenue (Appeals) or the Appellate Tribunal, along with a stay application to unfreeze the account and challenge the underlying tax demand.