Income Tax Notice / Rectification Services
If you've filed an incorrect tax return or received a notice from the Income Tax Department, don't worry. MAS Law Firm is here to help you resolve your issues.
When You Receive a Tax Notice
If you receive a notice from the Income Tax Department, it may be because:
- Some information might be missing in your Income Tax Return or Wealth Statement
- The missing information could be related to your income or tax deductions
- If you're a non-filer, purchasing a motor vehicle or property might have alerted the Tax Department
How We Can Help
If you've submitted your Income Tax Return and Wealth Statement or received a Notice from the Tax Department, you can contact MAS Law Firm for expert advice to help resolve your issue.
We assist with:
- Rectification of tax returns
- Response to tax notices
- Reconciliation of discrepancies
Tax Audit Assistance in Pakistan
The tax system in Pakistan operates on self-assessment, allowing taxpayers to comply voluntarily using their available information and documentation.
Understanding Tax Audits
The Federal Board of Revenue uses tax audits to monitor taxpayer compliance throughout the financial year. These audits check if taxpayers have accurately calculated and deposited their tax liabilities.
To assist with this, the Federal Board of Revenue has established a central risk-based automated system called Tax Audit Management System (TAMS), which helps the department get a clearer picture of taxpayer compliance and tax liability deposits.
The selection of taxpayers for audit is conducted through an automated ballot process, utilizing various information and parameters to create a transparent profile of the taxpayer.
Commissioner may request books and records of the taxpayer under the Income Tax Ordinance, 2001 within six years of the tax year in which the tax return is filed. After collecting information during the audit and obtaining the taxpayer's clarification on issues raised, an audit report with observations and findings should be issued.
If the Commissioner is not satisfied with the taxpayer's books and records, an order is issued giving the taxpayer a specific time period to file a tax appeal.
Offenses and Penalties
Under the Income Tax Ordinance, 2001
| Offenses | Penalties | Section |
|---|---|---|
| If a taxpayer fails to comply with the provisions of Audit under section 177 of the Income Tax Ordinance, 2001, without reasonable cause, they may face consequences. | 177 | |
| (a) Fails to provide documents upon receiving the first audit notice | Rs. 25,000/- (twenty-five thousand rupees only) | 177 |
| (b) Fails to provide Documents record on receipt of second Audit Notice | Rs. 50,000/- (Fifty Thousand Rupees Only) | 177 |
| (c) Fails to provide the document record upon receiving the third audit notice | Rs. 100,000/- (One hundred thousand Rupees only) | 177 |
Our Tax Audit Services
MAS Law Firm offers comprehensive services to taxpayers dealing with compliance issues in their tax audits, including:
- Review of books and records
- Preparation of audit responses
- Representation before tax authorities
- Tax Appeals and Litigation if needed