I. BACKGROUND (BG)

1. We refer to the related Important TLQC in trail, blue, italic and double Line (a) 3401 of 13.12.25 about FBR delayed its Obligations TY-2026 ITR Forms – PTBA (b) 3386 of 10.12.25 about ITR TY 2025 Return Filing Fake SMS & PTA to investigate

2. We also refer to several Other TLQC including 3310 of 20.10.25 about IRIS 3.0 with Pre-Filled Return Form, so be ready & KC Recommendation

II. EXECUTIVE SUMMARY & KC VIEWS

In view of the matters in para III to V, we recommend for your Team Development to we well as every next day will be difficult for Non-Filers (who may be your Non-Tax Team) and the Filers who have not disclosed lower income /& assets than correct income &/ assets (and there will be reduction in Bribery Culture, ISA).

III. DETAILS

A. General

1. Further to KQU 3710 of 19.12.25, being an important matter, we would inform you about Are you a 2025 return filer? You must know how FBR assesses your return (Attachment 3403.1) in the ensuing paragraph, with emphasis in bold & Underline for quick reading.

2. If you have filed your income tax return for tax year 2025, understanding how the FBR assesses your declaration is crucial. Many taxpayers believe filing a return ends their responsibility—but under Pakistan’s tax law, filing is only the beginning of the assessment process.

3. Here’s an interactive, easy-to-understand guide based on Section 120 of the ITO, 2001, so you know exactly what happens after submission.

B. What Happens After You File a Return for Tax Year 2025?

Your Return Becomes an Assessment

If you file a complete return of income, the law treats it as:

An assessment of taxable income

An assessment order issued by the Commissioner

The assessment is considered made on the date the return is processed or adjusted through the automated system.

C. Automated Processing by FBR (Section 120(2A))

Your return is processed through an automated system to ensure accuracy. FBR may make adjustments for:

Arithmetical errors (wrong calculations)

Incorrect claims apparent from the return

Disallowed losses, allowances, or tax credits

Invalid carry-forward of losses

Important safeguard:

No adjustment can be made unless a system-generated notice is issued to you first.

D. Did You Receive a System Notice?

Here’s how it works:

FBR sends a notice detailing proposed adjustments

You get 30 days to respond

Your reply is considered before finalizing adjustments

If you do not respond within 30 days, FBR may proceed with the adjustments.

Six-Month Rule You Should Know

If no adjustments are made within six months of filing your return:

Your declared income and tax are deemed accepted

You are automatically intimated through IRIS

This provides certainty and closure for compliant taxpayers.

E. What If Your Return Is Incomplete?

Notice of Deficiencies (Section 120(3))

If your return is missing information or documents:

The Commissioner will issue a deficiency notice

You’ll be asked to submit required details by a specified date

Non-Compliance Can Invalidate Your Return

Failure to fully comply makes your return invalid

It is treated as if no return was filed

F. Can an Incomplete Return Become Valid Again?

Yes. If you:

Fully comply with the notice within the given time

Provide all required documents

Your return is treated as complete from the original filing date.

G. Time Limit for FBR Notices

FBR cannot issue a deficiency notice after:

180 days from the end of the financial year in which the return was filed

Once this period passes, your return stands assessed under Section 120(1).

H. Can FBR Still Audit Your 2025 Return?

Yes. Even after assessment:

The Commissioner may select your case for audit under Section 177

Automated acceptance does not bar audit proceedings

I. Key Terms Explained Simply

Arithmetical error: Any incorrect tax calculation

Incorrect claim: A claim that:

Conflicts with another entry

Is not verified in the tax system

Exceeds statutory limits

J. Final Takeaway for 2025 Filers

If you filed your tax year 2025 return, your declaration is treated as an assessment order, subject to automated checks and possible audit. Ensuring accuracy, timely responses, and complete disclosures can help you avoid notices, invalidation, or penalties.

K. Pro tip: Always check your IRIS account regularly and respond promptly to system notices to stay fully compliant with FBR requirements.

L. Disclaimer: This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws, FBR procedures, and deadlines may change, and their application can vary based on individual circumstances. Readers should consult a qualified tax advisor or legal professional for guidance on filing, responding to notices, or handling assessments.

IV. YOUR ENTITY TAX TEAM DEVELOPMENT TO TAKE CARE OF FUTURE EXPECTED NOTICES

For Tax, Levies, Corporate Compliance & Savings, we recommend your team members to attend the Courses considering their Education & Experience. These courses can be attended Physically at Karachi; Online from Karachi Lahore, Islamabad, etc and Recorded Lecture are also available. Click here for the Main Tax Flyer. Specific Level as per the following Courses, click Flyers and Tentative Registration Links. Please click on the Link for  (a)  Comparative Study to decide relevant Level by Mr Asif Kasbati FCA, FCMA, LLB and Courses Director (b) View of High Level Professionals view (c) Participants views 

V. PROPER COMPLIANCE BY MAXIMUM & BROADENING TAX BASE TO REDUCE YOUR TAX IN FUTURE BUDGETS

Suggest Friends & Contacts to get Daily News Clipping, Updates & High Quality Commentary Subscriber in order to get this type of Quality emails, as per suggested by several High Level Professionals and current Subscribers.  For Flyer, click here. For video as  to the details about services, please click Link.  For Comments by High Level Professionals & Subscribers views, please click here. For 15 days FREE Samples as Trial, please fill Form, if not filled earlier. 

VI. MULTIPLICATION:

Although all the Commentaries are to the extent of the Subscribed IDs only, however, your Goodself is allowed to share this QC to Impart Knowledge to the maximum Employees, Relatives, Groups, etc.

VII. FURTHER DETAILS & SERVICES

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.

Best regards for Here & Hereafter

Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

Quick Commentary Service Provider and High Level 440+ Tax & Levies Laws Consultants)

Head of Tax & Professional Excellence Services (Symbols of High Quality Practical Tax, Levies & Corporate Training for Beginners to High Levels' Professionals)

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