115(4) (Statement of Final Taxation filed voluntarily)
When Do You Receive a Section 115(4) Notice from FBR?
You receive a Section 115(4) notice from the Federal Board of Revenue (FBR) in Pakistan when:
- You are subject to the Final Tax Regime (FTR) and need to file a statement of income.
- You have not filed your income tax return for a specific tax year.
- The FBR requires additional information or clarification about your income for a particular tax year.
Why Did You Get a Section 115(4) Notice from FBR?
The primary reasons for receiving a Section 115(4) notice include:
- Non-filing: You haven’t filed your income tax return for the specified tax year.
- Final Tax Regime: You fall under the FTR and need to submit a statement of income.
- Information Requirement: The FBR needs additional information about your income for a particular year.
- Compliance Check: It’s part of the FBR’s routine compliance verification process.
What Should You Do After Receiving a Section 115(4) Notice from FBR?
Upon receiving a Section 115(4) notice, it’s crucial to take prompt and appropriate action. Here’s a detailed guide on what you should do:
1. Understand the Notice
Carefully review the notice, noting:
- The specific tax year for which the return or statement is required
- The due date for submission
- Any specific instructions or requirements mentioned in the notice
2. Gather Necessary Documentation
Collect all relevant financial records, including:
- Bank statements
- Invoices and receipts
- Salary slips (if applicable)
- Investment records
- Any other documents supporting your income and expenses for the specified tax year
If you’ve filed returns for previous years, have these on hand for reference.
3. Prepare the Return or Statement
- Use the prescribed forms available on the FBR’s website or IRIS portal
- Ensure all information is accurate and complete
- Include details of all income sources, deductions, and applicable tax credits
- Double-check all calculations and entries
4. Submit the Return or Statement
- Log in to the FBR’s IRIS portal
- Submit your return or statement electronically before the due date
- Verify that the submission is successful
- Keep a copy of the acknowledgment for your records
5. Respond Promptly
- Adhere to the deadline specified in the notice to avoid penalties
- Attach all necessary supporting documents to substantiate your submission
- If you need more time, contact the FBR immediately to request an extension
6. Seek Professional Assistance if Needed
If you’re unsure about any aspect of preparing or filing your return:
- Consult a tax advisor or professional
- They can help ensure your submission is accurate and compliant with all regulations
7. Keep Detailed Records
Maintain copies of:
- The Section 115(4) notice
- Your submitted return or statement
- All supporting documents
- Any correspondence with the FBR
These records will be valuable if there are any future inquiries or audits.
8. Follow Up
- If you don’t receive an acknowledgment of your submission, follow up with the FBR
- Be prepared to provide additional information if requested
9. Plan for Future Compliance
To avoid receiving similar notices in the future:
- File your income tax returns accurately and on time each year
- Maintain complete and organized financial records throughout the year
- Stay informed about changes in tax laws and regulations
Get in Touch
Receiving a Section 115(4) notice from the FBR is a serious matter that requires immediate attention. By understanding the notice, gathering the necessary documentation, and submitting an accurate return or statement promptly, you can ensure compliance with Pakistani tax regulations and avoid potential penalties.
Remember, the key is to act quickly and accurately. If you’re unsure about any aspect of the process, don’t hesitate to seek professional help.
At ABH Consultants Islamabad, we specialize in assisting individuals and businesses with complex tax matters, including responding to FBR notices. Our team of experienced tax professionals can guide you through every step of addressing a Section 115(4) notice, ensuring that you comply fully with FBR requirements and protect your financial interests.
Reach out to help if you are unable to file your Tax Returns Properly