Did you just receive an FBR notice under section 114 and have no idea what to do next? Don't panic. You are not alone. Every year, thousands of taxpayers across Pakistan — salaried employees, freelancers, business owners, and property holders — receive this notice. The good news is that responding to an FBR notice u/s 114 is straightforward if you know the right steps. This guide will walk you through everything: what the notice means, why you received it, how to reply on the IRIS portal, and what happens if you ignore it.

What Is FBR Notice Under Section 114?

The FBR notice under section 114 is an official communication issued by the Federal Board of Revenue (FBR) under the Income Tax Ordinance 2001. It is sent to individuals and businesses who are required to file an income tax return but have either missed the deadline or never filed at all.

Section 114 of the Income Tax Ordinance 2001 legally obligates every eligible person to file a return of income. When you fail to do so, the Commissioner Inland Revenue has the authority to issue this notice through the IRIS Portal, directing you to comply immediately.

There are two main types of this notice:

• Section 114(3) Notice — Issued when you have not filed your income tax return for the current tax year.
• Section 114(4) Notice — Issued when you have failed to file returns for any of the previous 5 to 10 tax years.

Both notices are serious and require timely action.

Why Did You Receive an FBR Section 114 Notice?

Understanding the reason behind your notice is the first step toward resolving it. The FBR issues this income tax notice in Pakistan for one or more of the following reasons:

• You are a non-filer and your name does not appear on the FBR Active Taxpayer List (ATL)
• You missed the income tax return filing deadline for the current or previous tax years
• FBR identified discrepancies in your financial data from third-party sources such as banks, NADRA, or property records
• You have an NTN (National Tax Number) registered but have never filed a return
• FBR's system auto-generated your notice as part of its compliance-checking exercise
• You own property, vehicles, or have significant bank transactions that triggered a flag

In 2025 and 2026, FBR has intensified its crackdown on non-filers, including blocking mobile SIMs, restricting foreign travel under Section 114B, and disabling banking services. If you received this notice, responding to it immediately is in your best interest.

Section 114(3) vs Section 114(4) — Key Differences

What Documents Do You Need to Respond to FBR 114 Notice?

Before you log into the IRIS portal, gather the following documents:

• CNIC (Computerized National Identity Card)
• NTN (National Tax Number)
• Bank statements for the relevant tax year(s)
• Salary slips or employment certificate (for salaried persons)
• Business income records (for business owners and freelancers)
• Property documents if applicable
• Wealth statement details including assets and liabilities
• Foreign remittance certificates (for overseas Pakistanis)

Having these ready will make the filing process faster and reduce errors.

How to Respond to FBR Notice u/s 114 — Step-by-Step Guide

Here is the legal and official method to respond to your FBR section 114 notice online through the IRIS Portal:

Step 1: Log In to the IRIS Portal Go to iris.fbr.gov.pk and log in using your NTN or CNIC along with your password. If you do not have an account, register first using your CNIC and mobile number.

Step 2: Check Your Notices After logging in, navigate to the "Communication" or "Notices" tab on your IRIS dashboard. You will find the notice issued under section 114(3) or 114(4) listed there with full details including the tax year it relates to.

Step 3: Understand the Notice Details Read the notice carefully. Note the tax year, the issuing officer, the deadline for response, and what exactly is being requested — return of income, wealth statement, or both.

Step 4: Prepare and File Your Income Tax Return Go to the "Declaration" section on IRIS and select "Return of Income" for the relevant tax year. Fill in all required fields including:

• Total income (salary, business, rental, freelance, etc.)
• Tax already deducted at source
• Wealth statement (assets and liabilities)
• Foreign income if any

Step 5: Submit the Return After completing all fields, review your return carefully and submit it. IRIS will generate a filing acknowledgment. Save this as proof of compliance.

Step 6: Reply to the Notice Formally In some cases, you also need to file a formal reply to the notice within IRIS. Go back to the notice, click "Reply," attach your filed return, and submit the response. This formally closes the loop with the FBR commissioner.

Step 7: Keep Records Save all acknowledgment receipts, submission confirmations, and notices. These are important if any follow-up assessment occurs later.

What Is the Penalty for Not Responding to FBR Section 114 Notice?

Ignoring an FBR notice is never a good idea. The consequences escalate quickly:

• Penalty under Section 182 — A fixed penalty for failure to file can range from Rs. 10,000 to Rs. 50,000 or more depending on your income bracket and the number of years missed
• Default Surcharge — FBR charges a default surcharge at KIBOR plus 3% per annum on any outstanding tax liability
• Best Judgment Assessment — If you continue to ignore the notice, the Commissioner Inland Revenue can pass an ex-parte assessment order estimating your income and raising a tax demand
• Property confiscation and legal action — Under section 138, FBR can recover tax from your property or through arrest
• Travel ban — Under section 114B, FBR can restrict your foreign travel
• SIM and bank account blocking — FBR has the legal authority to block mobile SIMs and banking services for persistent non-filers

The longer you wait, the more complicated and expensive the situation becomes. Acting within the deadline given in the notice is critical.

FBR Notice Section 114 for Different Types of Taxpayers

Salaried Persons

If you are employed and your employer deducts tax at source, you may still receive a notice if you have not filed your annual return. Filing is mandatory regardless of whether tax has been withheld. Log in to IRIS, select salaried return, enter your income details and salary certificate, and submit.

Freelancers

Freelancers earning from platforms like Upwork, Fiverr, or direct international clients are required to file returns in Pakistan. If you received the notice, you need to declare your foreign remittances as income. Proper filing also helps you maintain active filer status and enjoy lower withholding tax rates. Read our detailed guide on Freelancers Tax Rules in Pakistan 2026 for more clarity.

Business Owners

Business owners who missed filing returns need to prepare income and expense statements for the relevant tax years and file accordingly. Incomplete or inaccurate filings can trigger audit notices under Section 177 later.

Property Owners

If FBR flagged you based on property records, you need to declare your property in your wealth statement and also explain the source of funds used for the purchase. Failure to do so can attract a Section 111 notice for unexplained income.

Overseas Pakistanis

Non-resident Pakistanis who own assets or have income in Pakistan are also subject to filing requirements. KTBA (Karachi Tax Bar Association) has highlighted that many overseas Pakistanis receive 114(4) notices for multiple past years as soon as they register on IRIS. If you are in this situation, you may need to file returns for each year separately. Seeking professional help is advisable.

How to Check FBR Notice on IRIS Portal

Many people wonder whether their notice is legitimate or how to verify it. Here is how:

1. Log in at iris.fbr.gov.pk
2. Click on the "Communication" menu
3. Select "Issued Notices"
4. Your active notices will appear with the section number, date, and tax year

You can also call the FBR Helpline at 051-111-772-772 to verify any notice received via SMS or email.

How to Respond to FBR Notice us 114

How to Avoid FBR Section 114 Notice in Future

Prevention is always better than cure. Here is what you can do to stay compliant:

• File your income tax return every year before the deadline (usually September 30)
• Keep your NTN active and update your personal details regularly on IRIS
• Maintain your status on the FBR Active Taxpayer List
• Declare all assets honestly in your wealth statement
• If you are a freelancer or business owner, keep proper accounting records
• If in doubt, consult a certified tax advisor before the deadline

You can learn more about becoming tax compliant in our article on How to Become a Filer in Pakistan and Steps to Filing Income Tax Return in Pakistan 2026.

Can FBR Issue a 114 Notice for Multiple Previous Years?

Yes. Under section 114(4), FBR can issue notices for up to 10 previous tax years if they believe you were required to file but did not. This is common for:

• Newly registered taxpayers who have never filed before
• People who recently acquired property or opened a business
• Overseas Pakistanis who register on IRIS for the first time

You must file a separate return for each tax year mentioned in the notice. This can be time-consuming, which is why professional assistance is highly recommended.

Should You Hire a Tax Consultant to Respond to FBR Notice?

If you have received notices for multiple years, have complex income sources, or are unsure about how to file correctly, hiring a certified tax consultant is a smart investment. A professional will:

• Review the notice and determine the exact requirement
• Prepare accurate returns for each tax year
• File formal replies within deadlines
• Represent you before the Commissioner if needed
• Help you minimize penalties and surcharges

For those who want to handle taxes professionally — or even build a career in tax — consider enrolling in the Advanced Taxation and Litigation Course at the Institute of Corporate and Taxation (ICT). ICT is Pakistan's leading taxation education institute, offering hands-on practical training on FBR filing, IRIS portal usage, income tax return preparation, and tax litigation. Visit Advanced Taxation and Litigation Course by ICT to learn more.

Also check out ICT's comprehensive blog on Income Tax Ordinance 2001 Compliance 2026 and FBR IRIS 2.0 — 2026 Tax Survival Guide for more expert-level insights.

For official tax information, always refer to the FBR's official website at fbr.gov.pk and the IRIS portal at iris.fbr.gov.pk.

Frequently Asked Questions (FAQs)

What is FBR notice under section 114? It is an official notice issued by the Federal Board of Revenue under the Income Tax Ordinance 2001 requiring a person to file their income tax return for a specific tax year or multiple years.

Why did I receive FBR section 114 notice? You likely received this notice because you did not file your income tax return by the due date, or because FBR identified you as a non-filer based on financial data from banks, NADRA, or property records.

How many days do I have to respond to the FBR 114 notice? The deadline is stated in the notice itself. Generally, you are given 15 to 30 days. Ignoring it can lead to an ex-parte assessment order.

Can I respond to FBR notice online? Yes. You can respond completely online through the IRIS portal at iris.fbr.gov.pk by filing your return and submitting a formal reply to the notice.

What is the penalty for ignoring FBR section 114 notice? Penalties include a fixed fine under Section 182, default surcharge at KIBOR plus 3%, best judgment assessment, travel ban, SIM blocking, and in extreme cases, legal action and property confiscation.

Is FBR section 114 notice only for non-filers? No. Even existing filers can receive this notice if FBR believes their returns contain errors, omissions, or if they missed filing for a specific tax year.

What is the difference between section 114(3) and 114(4) notice? Section 114(3) is for the current tax year while section 114(4) covers previous 5 to 10 tax years in which returns were not filed.

Conclusion

Receiving an FBR notice u/s 114 is not the end of the world — it is actually an opportunity to get compliant and protect yourself from bigger legal trouble. The key is to act quickly, gather your documents, log in to the IRIS portal, file your return for the relevant tax year(s), and submit a formal reply. The earlier you respond, the better.

Whether you are a salaried person in Lahore, a freelancer in Karachi, a business owner in Islamabad, or an overseas Pakistani — the process is the same, and it is entirely doable online.

If you want to truly master tax filing, compliance, and even turn this knowledge into a career, book your seat in the Advanced Taxation and Litigation Course at the Institute of Corporate and Taxation (ICT). ICT has helped thousands of students and professionals across Pakistan become certified tax advisors with practical, real-world skills. Explore all courses at ict.net.pk/courses and take the first step toward financial and professional freedom today.