Islamabad (Business Desk) The federal government has introduced a new mechanism for the automated scrutiny of income tax returns and for notifying taxpayers in advance about errors or irregularities identified in their filings. For this purpose, the Federal Board of Revenue (FBR) has issued a notification adding a new Rule 38B to the Income Tax Rules, 2002.
Under the new mechanism, the FBR's automated system, including the CRM, will review tax returns submitted by taxpayers. If any factual or legal errors or discrepancies are identified, an online notification or advance advisory will be sent through the IRIS system.
The purpose of this initiative is to give taxpayers an opportunity to submit explanations, correct errors and take necessary measures before any legal or penal proceedings are initiated. The relevant jurisdictional Inland Revenue Officer will also be authorised to issue such advance notifications.
According to the notification, taxpayers will be given at least seven days to respond, correct errors or address the identified irregularities. If no response is received within the prescribed period, a reminder will be sent, providing an additional period of at least seven days.
Details of issues identified through the automated system, notifications issued and responses submitted by taxpayers will be provided to the relevant Inland Revenue Officer. Details of all notifications, responses received and actions taken will also be recorded on the system's dashboard.
After reviewing a taxpayer's explanation, the relevant officer may take further action, as necessary, in accordance with the Income Tax Ordinance, 2001, and the rules framed under it.