An audit notice from FBR reads like a legal document, and that's exactly the tone it deserves — but the actual procedure that follows is fairly predictable once you know the stages. Here's what happens from the moment a notice lands to the point your case is closed.
Filer vs Non-Filer: Why the Stakes Are Higher for Non-Filers
| Aspect | Filer | Non-Filer |
|---|---|---|
| Income tax slabs | Standard slab, 0–35% | Higher effective rates |
| Bank profit withholding | 15% | 30% |
| Property transaction withholding | 3% | 6% |
| ATL status | Active — full benefits | Non-filer — double withholding |
Staying on the Active Taxpayer List by filing before the September 30 deadline every year is the single biggest lever you have over how expensive an audit outcome can get.
Stage 1: The Notice Arrives
Notices are issued under different sections depending on what's being questioned — commonly Section 122 (assessment/audit), Section 111 (unexplained assets), or Section 177 (general audit). Each carries its own response window, usually between 15 and 30 days. Missing that window converts your case into an ex-parte assessment, which is far harder and costlier to unwind afterward.
Stage 2: Gathering Records and Filing a Reply
You, or your consultant, log into IRIS and respond through the Audit/Correspondence section, or submit physically where required. The reply needs supporting evidence for every point the notice raises — bank statements, invoices, salary certificates, and property papers for the specific period in question. A partial, timely response is always better than a complete one filed late.
Stage 3: Hearing and Draft Assessment
If FBR is not satisfied with the paper reply, you may be called for a hearing. Afterward, a Draft Assessment Order is issued proposing additional tax. You have a legal right to object to this draft before it is finalised — the Commissioner must consider your response.
Stage 4: Final Assessment and Appeal Options
- Commissioner (Appeals): First appeal, must be filed within 30 days of the final order
- Appellate Tribunal Inland Revenue (ATIR): Second appeal, within 60 days
- High Court: Available only for questions of law
- ADR (Section 134A): A faster settlement route worth considering before going the full appeal route
Using IRIS Throughout the Process
FBR's IRIS portal (iris.fbr.gov.pk) is where most of this procedure actually happens online — NTN records, return history, wealth statements, notice replies, and payment challans all live there. Common hitches include forgotten passwords (reset with CNIC and mobile OTP), an unrecognised NTN (enter CNIC without dashes), and PSID payments that take up to 24 hours to reflect. For anything that doesn't resolve on its own, FBR's helpline is 051-111-000-025.
Staying Out of Audit Trouble in the First Place
- Register your NTN properly and keep contact details on IRIS current
- File every year before September 30 without gaps
- Keep salary certificates, bank statements, and property documents organised as you go, not after a notice arrives
- Make sure your wealth statement is arithmetically accurate every single year
- Respond to any FBR communication immediately, even if it looks minor
NTNWaale manages audit responses and appeals from start to finish and keeps clients compliant year-round so a notice never turns into a crisis. Send your case details on WhatsApp for a same-day review.