182(2) (Notice to impose penalty u/s 182 for failure to furnish return u/s 114)
Under section 114(1), you were required to voluntarily file an Income Tax return for the above-mentioned Tax Year. But no return was filed within the due time and under the provision of section 118 of the Income Tax Ordinance, 2001. The default of non-filling of return for the subject tax year, therefore, stands established. The above circumstances call for action to impose the minimum penalty. Therefore, you are liable for the imposition of a minimum penalty amounting to Rs. ——-/- under the provision of Section 182 of Income Tax Ordinance, 2001.
In view of the above, you are hereby called upon to show cause under section 182(2) of the Income Tax Ordinance, 2001 that why penalty should not be imposed for default in compliance with the provision of section 114 of the Income Tax Ordinance, 2001.
Your written explanation should reach the undersigned on or before due date, failing which the penalty shall be imposed as indicated above.
you may receive this in e-mail
When do you receive 182(2) notice from FBR?
You will receive this notice in email by the Federal Board of Revenue (FBR) in Pakistan when a taxpayer fails to file their income tax return by the due date.
You’ll receive this notice after the deadline for filing your income tax return has passed, and the FBR has identified that you haven’t submitted your return as required under Section 114 of the Income Tax Ordinance.
Why you got 182(2) notice from FBR?
When you have not furnished your income tax return under section 114 within the due date you have committed an offense, which is liable to a penalty. When IRIS points out that income tax return is deficient, it automatically generates notice under section 182 (2).
The primary reason for receiving a 182(2) notice is straightforward: you failed to file your income tax return on time. This could be due to various reasons, such as:
- Forgetting about the filing deadline
- Misunderstanding your tax obligations
- Technical issues preventing timely filing
- Personal emergencies or unforeseen circumstances
- Deliberate non-compliance
Regardless of the reason, the FBR issues this notice as a formal communication to inform you of your non-compliance and the potential penalties you face.
How much is the amount of penalty ?
- penalty is equal to 0.1% of tax payable for each day of default
- maximum penalty up to 50% of tax payable or
- up to Rupees Forty thousand maximum if aforesaid is less.
- if salaried person, and salary is less than Five million rupees, minimum penalty would be Rupees five thousand
- up to a maximum of 50% of the tax payable or PKR 40,000, whichever is less
- For salaried individuals with income below PKR 5 million, a minimum penalty of PKR 5,000
What should you do after receiving 182(2) notice from FBR?
When you receive an intimation from FBR regarding issuance of notice under section 182(2). Reply to the notice must be giving within due date by explaining the reason for not filing the tax return.
If all tax liability is already deducted at the source then necessarily inform the department that your late filing is not the source of any financial loss to the FBR.
Receiving a 182(2) notice can be concerning, but it’s crucial to respond promptly and appropriately. Here’s a detailed guide on what you should do:
- Review the Notice Carefully
Start by thoroughly examining the notice. Ensure it includes:
- The specific tax year in question
- The deadline for your response
- Details of the penalty being considered
Understanding these details will help you formulate an appropriate response.
- Gather Required Documents
Collect all relevant financial documents, including:
- Income statements
- Bank statements
- Any other records supporting your tax return
If you haven’t filed your tax return yet, now is the time to prepare it.
- Respond to the Notice
Your response should include:
- A written explanation for the delay in filing your return
- Your completed and filed tax return (if not already submitted)
- Information about any tax liability already deducted at source
If there were valid reasons for your delay, such as technical issues or personal emergencies, clearly explain these in your response.
- Consult a Tax Professional
Consider seeking advice from a tax professional, especially if you’re unsure about how to respond or need assistance in preparing your documents. A tax expert can:
- Help you understand the implications of the notice
- Assist in drafting a comprehensive response
- Represent you in communications with the FBR
- Submit Your Response
Ensure your written explanation and supporting documents reach the FBR before the specified deadline. Keep copies of all correspondence for your records.
To avoid receiving such notices in the future, make sure to:
- Mark tax filing deadlines on your calendar
- Keep your financial records organized throughout the year
- Consider setting up reminders or using tax preparation software to help you file on time
Get in Touch
Receiving a 182(2) notice from the FBR is a serious matter that requires immediate attention. By understanding why you received the notice and following the steps outlined above, you can navigate this situation effectively and minimize potential penalties.
Remember, the key is to act quickly, communicate clearly with the FBR, and ensure future compliance to avoid similar issues. If you find the process overwhelming or need expert guidance, don’t hesitate to reach out to professional tax consultants who can assist you in resolving the matter efficiently.
At ABH Consultants Islamabad, we specialize in helping individuals and businesses navigate complex tax situations, including responding to FBR notices. Our team of experienced tax professionals can guide you through the process, ensure your response is comprehensive and timely, and help you develop strategies for future tax compliance.
Don’t let a 182(2) notice cause undue stress or financial penalties. Contact ABH Consultants Islamabad today for expert assistance in resolving your tax matters and ensuring your peace of mind.
Reach out to help if you are unable to submit your Tax Returns Properly