214C (Notice to call for record / documents / books of account)
Subject:- SELECTION OF CASE FOR AUDIT U/S 214D OF THE INCOME TAX ORDINANCE, 2001 – CALLING FOR RECORD/DOCUMENTS U/S 177(1) OF THE INCOME TAX ORDINANCE, 2001 FOR CONDUCTING AUDIT.
This is to inform you that in accordance with the provision of section 214D of the Income Tax Ordinance, 2001, late return filed by you has been automatically selected for audit. Audit of income tax affairs is to be conducted as per procedure given in Section 177 of the Income Tax Ordinance, 2001. Your case is being assigned to the concerned ACIR/DCIR who has been directed to conduct audit in the light of relevant provisions of the Income Tax Ordinance, 2001. The concerned Unit Officer will soon issue you an information documents request for furnishing of books of accounts and other details/documents in support of your declared version as per your return of income.
In view of the above, you are requested to cooperate with the concerned Unit Officer in conducting audit in a smooth and orderly manner so that the process gets completed as early as possible. Kindly remain assured that in case nothing adverse is found out in the instant case the audit shall accordingly be concluded / closed.
you may receive this in e-mail
When do you receive 214C notice from FBR?
You receive a 214C notice from the Federal Board of Revenue (FBR) in Pakistan when your tax return has been selected for an audit through a computer ballot. This notice is issued under Section 214C of the Income Tax Ordinance, 2001. The selection is typically automated and may occur due to various factors, including late filing of your return or other discrepancies identified by the FBR’s system.
Why you got 214C notice from FBR?
The primary reasons for receiving a 214C notice include:
- Automated Selection: Your return was chosen through a computer ballot system, which randomly selects returns for audit to ensure compliance.
- Late Filing: If you submitted your tax return after the deadline, it may increase the likelihood of being selected for audit.
- Discrepancies: The FBR’s system may have identified inconsistencies or unusual entries in your tax return.
- Routine Checks: Sometimes, returns are selected as part of the FBR’s routine compliance checks, regardless of any specific issues.
It’s important to note that receiving this notice doesn’t necessarily imply wrongdoing on your part. It’s part of the FBR’s process to ensure tax compliance across the board.
What should you do after receiving 214C notice from FBR?
Upon receiving a 214C notice, it’s crucial to take prompt and appropriate action. Here’s a detailed guide on what you should do:
- Review the Notice Carefully
Start by thoroughly examining the notice. Pay attention to:
- The specific tax year under audit
- The list of documents required by the FBR
- The deadline for submitting these documents
Understanding these details is crucial for formulating your response and gathering the necessary information.
- Gather Required Documents
Collect all relevant financial documents, including:
- Income statements
- Expense receipts
- Bank statements
- Any other records specifically requested in the notice
Organize these documents clearly and systematically to facilitate the audit process.
- Consult a Tax Professional
Consider seeking advice from a tax professional. They can:
- Help you understand the implications of the notice
- Guide you through the audit process
- Assist in preparing and organizing your documentation
- Represent you in communications with the FBR
- Respond to the Notice
Prepare your response by:
- Compiling all requested documents
- Making copies of everything you submit (keep these for your records)
- Drafting a cover letter summarizing the contents of your submission
If you need more time to gather documents, you can request an extension from the FBR. Provide a valid reason for your request.
- Cooperate with the Audit Process
Throughout the audit:
- Maintain open communication with FBR officials
- Respond promptly to any additional requests for information
- Be prepared to provide explanations for any discrepancies or unusual entries in your financial records
- Maintain Documentation
Keep detailed records of:
- The original notice
- Your response
- All correspondence with the FBR
This documentation will be crucial if there are any disputes or further inquiries.
- Be Aware of Potential Consequences
Understand that non-compliance with a 214C notice can result in:
- Financial penalties as per the Income Tax Ordinance
- Potential legal action for continued non-compliance
Get in Touch
Receiving a 214C notice from the FBR is a matter that requires immediate attention. By understanding the notice, gathering the required documents, consulting with tax professionals, and cooperating fully with the audit process, you can navigate this situation effectively and minimize potential issues.
Remember, the key is to act promptly, communicate clearly, and maintain thorough documentation throughout the process. If you find the audit process overwhelming or need expert guidance, don’t hesitate to seek professional help.
At ABH Consultants Islamabad, we specialize in assisting individuals and businesses with complex tax matters, including FBR audits. Our team of experienced tax professionals can guide you through every step of the 214C audit process, ensuring that your rights are protected and that you comply fully with FBR requirements.
Don’t let a 214C notice cause undue stress or lead to potential penalties. Contact ABH Consultants Islamabad today for expert assistance in managing your tax audit and securing your financial peace of mind.
Reach out to help if you are unable to file your Tax Returns Properly