Received an FBR notice for not filing your income tax return? Do not panic, and do not ignore it. A notice is not a penalty order. It is FBR asking you to do something by a specific date. If you respond properly within that time, the matter usually closes with nothing more than a filed return. If you ignore it, the Commissioner can assess your income on his own estimate, impose a penalty of at least Rs 40,000 in most cases, and keep you off the Active Taxpayers List. This guide explains what the notice means and exactly what to do, step by step.
What is this notice?
Most “non-filer” notices are issued under Section 114(4) of the Income Tax Ordinance, 2001. This section allows the Commissioner to require a person to file a return for one or more tax years, within the period stated in the notice. FBR picks up non-filers from third-party data: bank transactions, property registrations, vehicle purchases, utility bills, foreign travel and withholding tax deducted on your CNIC. If your CNIC shows activity but no return, a notice is likely.
The notice is normally served through your IRIS account and by post or email. Many people only find out when a letter arrives at home, because they never logged in to IRIS after registration. Check your IRIS inbox now if you have an account. If your notice is under a different section, our guide to all 17 types of FBR notices explains each one.
Read these four things on the notice first
- The section (for example 114(4), 122(9) or 176). It tells you what FBR is actually asking for: a return, an explanation, or documents.
- The tax year(s). A notice received today often relates to Tax Year 2024 or 2025, not the current year.
- The compliance date. This is the date that matters most. Everything below depends on it.
- The issuing office (RTO or LTO, zone and officer), so that any reply goes to the right place.
What happens if you ignore it
Ignoring a Section 114(4) notice does not make the matter go away. It moves it to the next stage, where you have much less control.
| Consequence | Legal basis | What it means for you |
|---|---|---|
| Best judgment assessment | Section 121 | The Commissioner assesses your income on available information, such as bank credits or property value, and creates a tax demand. |
| Penalty for not filing | Section 182 | 0.1% of the tax payable for each day of default, up to 50% of the tax payable, with a minimum of Rs 40,000. Rs 40,000 also applies where no tax is payable. |
| Lower minimum for salaried persons | Section 182 (proviso) | If 75% of income is salary and salary is below Rs 5 million, the minimum penalty is Rs 5,000. |
| No filer status | Section 182A | A late filer is not in the ATL for that year until the surcharge is paid: Rs 25,000 for an individual, Rs 50,000 for an AOP, Rs 100,000 for a company. |
| Recovery action | Sections 137 to 140 | Once a demand is final, FBR can attach bank accounts and recover the tax directly. |
Non-filers who are placed on an Income Tax General Order can also face blocking of mobile SIMs and disconnection of electricity and gas under Section 114B. And for the rest of the time you remain outside the ATL, higher non-filer withholding rates apply on property, vehicles, cash withdrawals and bank profit.
What to do: step by step
- Note the compliance date and work back from it. If it is less than a week away, start today.
- Log in to IRIS. Reset your password if needed. Confirm the notice in your inbox and check whether any earlier notices are pending.
- Collect the records for the tax year in the notice: bank statements, salary certificate or business records, withholding tax certificates, and details of property, vehicles and investments.
- Prepare the return and wealth statement together. Your assets must reconcile with your income and with previous years. The FBR data that triggered the notice will be compared with what you declare, so explain large bank credits honestly.
- Pay any tax due through a PSID and attach the payment to the return.
- File the return on IRIS before the compliance date and keep the acknowledgement.
- Reply to the notice in writing, through IRIS or at the RTO, stating that the return has been filed and attaching the acknowledgement. Do not assume the officer will notice the filing on his own.
If you need more time to gather records, apply in writing for an extension before the compliance date, with a genuine reason. A request made after the date has passed is far weaker.
If you believe the notice is wrong
| Your situation | What to do |
|---|---|
| You already filed for that year | Reply with a copy of the filed return and IRIS acknowledgement. |
| Your income was below the taxable limit | You may still be required to file, for example if you own property, a vehicle above the limit or have certain bank activity. Reply with the facts and, where filing is required, file a return. |
| The transactions belong to someone else | Reply with evidence: the account holder, the agreement, or proof that the CNIC was misused. |
| The person has died or left Pakistan | The legal heir or representative should reply with the relevant documents. |
Whatever the reason, the reply must be in writing and on time. A verbal explanation at the counter does not protect you if an assessment order is later passed.
If you have not filed Tax Year 2026 yet
Many people who receive a notice for an old year have also not filed for the current year. The Tax Year 2026 deadline is 31 October 2026 (FBR Circular No. 4 of 2026-27). File the current year at the same time, before that date, and you avoid the Rs 25,000 ATL surcharge for 2026 completely. We have explained this in detail in our post on filing before 31 October to avoid the Rs 25,000 ATL surcharge. Once filed, you can check your filer status online.
Already received an assessment order or penalty?
If the compliance date has passed and an order under Section 121 or a penalty order has already been issued, you still have options. An appeal can be filed before the Commissioner (Appeals) within 30 days of receiving the order. In some cases a rectification application or a request to the Commissioner is the better route. Time limits here are strict, so get advice as soon as the order arrives.
Frequently asked questions
How many days do I get to respond to a Section 114(4) notice?
The time is written on the notice itself. Do not rely on a general rule; go by the compliance date on your notice and ask for an extension in writing before it expires if you need more time.
Will I be penalised even if I file after receiving the notice?
If the return for that year is filed after its due date, it is a late return, and the Section 182 penalty and the ATL surcharge can apply. But filing within the notice period stops the matter from moving to a best judgment assessment, which is usually far more expensive.
I have no income. Why did I get a notice?
FBR notices are triggered by activity on your CNIC, not only by income. Property, a vehicle, a large bank balance or foreign travel can all trigger one. Reply with the facts, and file a return if the law requires it in your case.
Can I reply to the notice online?
Yes. Most notices can be answered through IRIS by attaching your reply and documents to the notice. Keep a copy of everything you submit.
Do I need a tax lawyer for this?
For a simple case where you just need to file a return, a tax practitioner can file it and send a short reply. Where there are large unexplained bank credits, property purchases or an assessment order already issued, professional help is strongly recommended.
Get help with your FBR notice
Irshad and Company Management Consultants has been handling FBR notices, returns and appeals in Lahore since 2016, led by Advocate High Court Aneel Irshad Khan, an FBR-registered Income Tax Practitioner. Send a photo of your notice on WhatsApp at 0334-4084149, and we will tell you what it means and what it will take to close it. See our FBR notice reply service or contact us.
This article reflects the position as of 26 October 2026 under the Income Tax Ordinance, 2001 as amended by the Finance Act, 2026. It is general information, not advice for your specific case. Penalty amounts and time limits depend on the facts and the notice issued to you.
