📌 Key Highlights & Quick Takeaways:
- The Federal Government has laid down a mechanism for automatic scrutiny of Income Tax returns and for giving advance notice to the taxpayers.
- Under the new mechanism introduced by FBR, FBR's automated system, including CRM, will scrutinize income tax returns filed by taxpayers and.
- So that the taxpayers can submit their explanations, rectify the errors or take other necessary steps before the initiation of legal or pena.
The Federal Government has laid down a mechanism for automatic scrutiny of Income Tax returns and for giving advance notice to the taxpayers regarding any errors or irregularities found in them.Income Tax Rules 2002 included new section 38B, the Federal Board of Revenue (FBR) issued a notification.
Under the new mechanism introduced by FBR, FBR's automated system, including CRM, will scrutinize income tax returns filed by taxpayers and send online advice or advance notice through IRIS if any factual or legal error or discrepancy is identified.
So that the taxpayers can submit their explanations, rectify the errors or take other necessary steps before the initiation of legal or penal proceedings. This advance notice may also be issued by the Inland Revenue Officer having jurisdiction. To respond to the taxpayer as per the notification.
At least seven days will be given to correct the error or remove the irregularity pointed out. In case of non-receipt of response within the prescribed period, the reminder will be sent to the taxpayer again, for which a minimum period of seven days will be fixed.
