An FBR notice can feel alarming, but not every notice is a crisis. Some are routine (you simply need to file a return), while others are serious and require careful documentary evidence. This guide breaks down the most common notice types, what each one actually demands, and how to respond correctly.
Common FBR Notice Types
- Section 114 — A return-filing notice. FBR is telling you that you haven't filed a required return; the fix is simply to file it.
- Section 111 — An unexplained income/assets notice. FBR has spotted transactions, bank deposits, or property purchases that don't match your declared income.
- Section 176 — An information request, asking you to submit specific documents or records.
- Section 177 — A full audit notice covering up to three years of your financial records.
- Section 122 — An amended assessment, meaning FBR has recalculated your tax liability.
Section 111 Deserves Extra Care
This is the most serious notice type for individuals. FBR cross-checks bank transactions, property registrar records, and remittance data against your declared income. If a mismatch is found, you're asked to explain the source of funds — inheritance, gift, agricultural income, or an already-taxed source. An unsubstantiated amount is taxed at a flat 35% under Section 111, plus a 100% penalty on top — so roughly 70 paisa of every unexplained rupee can end up going to FBR, which is why the explanation and supporting documents matter enormously.
The Response Process
- Read the notice carefully — note the section, deadline, and exact demand
- Check your IRIS account, since notices are often mirrored there
- Gather supporting documents: bank statements, property papers, salary certificates
- For anything beyond a simple Section 114 notice, get a consultant's opinion before replying
- Submit a written response through IRIS, keeping proof of submission
What Happens If You Ignore a Notice
Missing the deadline typically results in an ex-parte assessment — FBR determines your liability without your input, usually on the higher side. This can escalate to a demand notice, and ultimately to recovery action such as bank account attachment. Responding on time, even with a request for extension, keeps your options open.