177Act this week
Selection for audit of income tax affairs
A notice under section 177 means your income tax affairs have been selected for audit and the officer will examine your books and records for that year in detail.
Income Tax Ordinance 2001Time you have
The notice sets a date for producing records, and the audit then proceeds over several hearings.
If you ignore it
The audit is completed ex parte under section 121 on the officer's own estimate, and a penalty for non-compliance is added on top.
Why you got it
Why this arrived
- Random or parametric selection by the FBR
- A significant mismatch between declared income and known assets
- Repeated losses, high refunds, or low declared margins for your sector
What to do
What to do now
- Do not attend without representation, an audit is where most demands are created
- Assemble a reconciliation of bank deposits to declared income before the first hearing
- Answer each query in writing, so the record shows what was produced
Documents
What to gather
- Books of account, ledgers and bank statements for the year
- Purchase and sales invoices
- Wealth statement and reconciliation
- Withholding tax certificates
Send us the notice before the deadline
Photograph every page and send it on WhatsApp. We read it the same day and tell you the real exposure, not the worst case. Our principal is a licensed Income Tax Practitioner and can be authorised on your IRIS account to reply and appear for you.
0335 1358871 · Monday to Saturday, 11:00 am to 7:00 pm (PKT)