Every year the FBR issues thousands of notices under the Income Tax Ordinance, 2001. Most are routine - a nudge to file, a request for a bank statement - but the wording is intimidating and the deadlines are real. The single most expensive mistake is silence: if you do not respond, the Commissioner can complete an ex parte assessment under section 121 at the maximum likely liability. This guide breaks down the three notices you are most likely to see, what each one actually asks for, and how to respond correctly.
What an FBR tax notice is - and what it is not
An FBR notice is a formal communication from your Commissioner Inland Revenue, delivered to your IRIS inbox (and often by SMS or email as an alert). It is not a penalty in itself and it is not a criminal charge. It is a request or a proposal that starts a clock. Your job is to read the section quoted at the top, note the deadline, and file a reply through IRIS before that date. Before doing anything, confirm the notice is genuine - log into IRIS and check it appears in your inbox with a matching bar-code number, since fake FBR notices do circulate. You can verify through the FBR helpline on 051-111-772-772.
Golden rule: respond to every notice in writing through IRIS, even if only to seek an extension or clarification. Never negotiate informally with an officer and never admit to an error you have not independently verified.
Notice under section 114(4): file your return
This is the most common FBR notice. It is issued when the department believes you were required to file an income tax return but did not - for one or more of the last five completed tax years (and in some cases further back). It is frequently received by business owners with gaps in their filing history and by overseas Pakistanis who own property or bank accounts in Pakistan.
What it asks: file the return(s) for the year(s) named in the notice. Deadline: stated on the notice, normally at least 30 days. How to reply: log into IRIS, open the return for each cited year, complete it accurately, and submit before the date. Filing the return is the response - there is no separate letter required.
If you ignore it: the Commissioner can pass a best-judgement assessment under section 121, estimating your income (usually generously in the FBR's favour), and add penalties under section 182 plus default surcharge. That assessed demand then becomes recoverable, including by attaching your bank account. Not on the Active Taxpayers List yet? Check your status first with our ATL check guide, then file. Our step-by-step IRIS return filing guide walks you through it.
Notice under section 122: amendment of assessment
Section 122 is more serious. It lets the Commissioner reopen and amend an assessment you have already filed. The usual grounds are that the officer has definite information (section 122(5)) - for example, undeclared property, a bank credit or a purchase the FBR has matched to you - or that the original assessment is considered erroneous and prejudicial to the interest of revenue (section 122(5A)). It arrives as a show-cause notice and can increase your tax, add penalties and charge default surcharge.
Key protections you have:
- The FBR must give you a proper opportunity to be heard before amending - a bare notice without reasons can be challenged.
- An assessment generally cannot be amended after five years from the end of the financial year in which the original order was issued (section 122(2)).
- For show-cause notices issued on or after 1 July 2021, the amended order must be passed within 180 days (extendable in writing by up to 90 days) of the notice, excluding periods of stay or Alternative Dispute Resolution.
- Where the FBR wants to add unexplained income or assets, the courts have repeatedly held that a separate notice under section 111 must be issued first.
Do not admit anything prematurely. Taxpayers often concede a "discrepancy" under a 122 notice that a proper review shows was the FBR's matching error, not theirs. Verify the department's figures against your own records and bank statements before you reply.
Notice under section 176: produce information or evidence
Section 176 is the FBR's information-gathering power. A 176(1) notice asks you to furnish specific records or evidence relevant to your tax - typically bank statements, business accounts, ledgers, invoices, property documents, purchase receipts or salary certificates. It can relate to any tax year and is often the first step before an audit under section 177 or an amendment under section 122.
What it asks: the exact documents are listed in the notice. Deadline: commonly up to 30 days, but the notice can specify a shorter period - sometimes 7 to 15 days - so read it carefully. How to reply: upload the requested documents through IRIS with a short covering reply. If you genuinely need more time, request an extension in writing before the deadline; approval is at the Commissioner's discretion.
Penalty for non-compliance: failure to comply with a 176 notice attracts a penalty under section 182 - broadly Rs 25,000 for a first default and Rs 50,000 for repeated non-compliance - and, in serious cases of wilful refusal, prosecution carrying imprisonment of up to one year. Cooperation is almost always the cheaper path.
The three notices side by side
A quick reference for the sections, what triggers them, and your typical window to reply:
| Section | What it means | What you do | Typical deadline | Risk level |
|---|---|---|---|---|
| 114(4) | You failed to file a required return | File the return(s) in IRIS | 30 days | Low - Medium |
| 122 | FBR proposes to amend a filed assessment | Written reply challenging or accepting | As stated (show-cause) | High |
| 176 | Request for documents / evidence | Upload records in IRIS | 7 - 30 days | Medium |
Two related sections often appear alongside these: section 111 (unexplained income or assets) and section 177 (audit selection). Both are higher-stakes and should be handled with professional help.
Deadlines and penalties at a glance
Missing a deadline does not just forfeit your chance to reply - it triggers penalties under section 182 and default surcharge on unpaid tax. Indicative exposure:
| Default | Governing section | Indicative penalty |
|---|---|---|
| Late / non-filing of return | 182 | Higher of 0.1% of tax per day or Rs 1,000/day; min Rs 10,000 (salaried) or Rs 50,000 (others); capped at 200% of tax |
| Failure to comply with 176 notice | 182 | Rs 25,000 (first); Rs 50,000 (repeat); prosecution possible for wilful refusal |
| Ex parte / best-judgement assessment | 121 | Tax assessed on FBR's estimate, plus penalty and default surcharge |
Figures are indicative and change with each Finance Act - confirm the current amounts against the notice and your assessment before paying. See our guide to tax penalties and default surcharge for the full schedule.
How to respond - a five-step drill
- Verify. Confirm the notice is genuine in your IRIS inbox and note the exact section and deadline.
- Decode the ask. Identify whether it wants a return (114), a defence of your assessment (122) or documents (176).
- Gather records. Pull the relevant returns, bank statements, ledgers, invoices, contracts and salary certificates.
- Reply in IRIS, in writing, on time. File the return, upload the documents, or submit a reasoned reply - and request an extension formally if you truly need one.
- Escalate if needed. If you disagree with an amended assessment, your remedies are a formal appeal to the Commissioner (Appeals) and then the Appellate Tribunal - not an informal conversation.
If a demand has already been raised, read our guide to tax appeals before the appeal window closes.
When to get a tax lawyer
You can often handle the simple end yourself. A plain 114(4) reminder, or a 176 request where your records are clean and complete, is manageable if you are organised. Bring in a professional the moment a notice carries real risk:
- Any section 122 amendment or section 111 unexplained-income notice.
- Selection for audit under section 177.
- Any recovery notice or threat of bank attachment under section 138 or 140.
- Large figures, multiple years, or where the FBR's numbers do not match your own.
A lawyer protects you from conceding points you do not owe, keeps the reply within the four corners of the law, and preserves your appeal rights. LegalPK's tax planning and advisory team drafts notice replies and represents clients through appeals across Pakistan.
Frequently asked questions
What is an FBR notice under section 114(4)?
It orders you to file an income tax return for one or more tax years you failed to file - up to the last five completed years. You respond by filing the return in IRIS before the deadline.
How long do I have to respond?
The deadline is on the notice, usually 15 to 30 days. A 114(4) notice normally gives at least 30 days; a 176 information notice can give as little as 7 to 15 days.
What does a section 122 notice mean?
It is a show-cause notice proposing to amend an assessment you already filed - usually on definite information or because the assessment is deemed erroneous and prejudicial to revenue. It can raise your tax, penalties and surcharge.
What happens if I ignore an FBR notice?
The Commissioner can complete an ex parte best-judgement assessment under section 121 at maximum liability, add penalties under section 182, and recover the demand through bank attachment.
What is the penalty for not filing after a 114(4) notice?
Under section 182, the higher of 0.1% of tax per day or Rs 1,000 per day, with a minimum (typically Rs 10,000 salaried, Rs 50,000 others) and a 200%-of-tax cap. Each unfiled year is separate.
Do I need a lawyer?
Not for a simple 114(4) reminder or a routine 176 request with clean records. Yes for 122 amendments, 111 notices, audits under 177, and any recovery action.