The Federal Board of Revenue (FBR) has proposed new rules to streamline income tax assessments through a faceless assessment system. Issued under SRO 1905(I)/2026 on October 26, 2026, the draft rules outline how specified tax proceedings may be handled digitally under the Income Tax Ordinance, 2001.
The initiative aims to make tax administration more technology-driven while allowing taxpayers to submit information and respond to notices electronically.
What Is FBR’s Faceless Assessment System?
Under the proposed Rule 240A, designated assessment units may handle specified tax matters through an electronic process. These include:
- Best-judgment assessments under Section 121.
- Amendments to assessments under Section 122.
- Provisional assessments under Section 123.
- Orders giving effect to appellate decisions under Sections 124 and 124A.
- Rectification of apparent mistakes under Section 221.
- Related notices, information requests, penalties and default surcharge proceedings.
How Will Taxpayers Respond to FBR Notices?
When a case is allocated to an assessment unit, the officer will review the relevant records and issue notices where required by law. Taxpayers will need to submit their replies, supporting documents and evidence through their designated accounts on the FBR’s IRIS system.
The proposed rules also provide for electronic hearings. Technical assistance or physical verification may be requested where necessary, meaning that digital proceedings will not eliminate every form of physical verification.
What Should Taxpayers Do?
Taxpayers should regularly monitor their IRIS accounts, respond to notices within the prescribed time, maintain accurate financial records and ensure that supporting documents are complete. Ignoring a notice or submitting inadequate information may create difficulties during assessment proceedings.
As the rules were notified in draft form, taxpayers should verify the applicable requirements and implementation status before relying on them for a specific case.
How Xact Legal Can Help
Xact Legal assists individuals and businesses with tax compliance and related advisory services in Pakistan. Our support can include reviewing tax notices, organising supporting documents, preparing responses and providing guidance on income tax obligations and assessment-related matters.
Need help with an FBR notice or tax assessment? Contact Xact Legal for professional guidance tailored to your circumstances.
Frequently Asked Questions
What are FBR faceless assessment rules?
They are proposed procedures for handling specified income tax assessments and related proceedings electronically through designated assessment units.
Do taxpayers have to respond through IRIS?
Under the proposed rules, taxpayers must submit replies, documents and evidence through their designated IRIS accounts in accordance with the applicable procedure.
Does faceless assessment mean there will be no physical verification?
No. Physical verification may still be requested where necessary under the relevant rules.
Are the new rules final?
The rules covered in SRO 1905(I)/2026 were notified as draft rules. Taxpayers should check the latest official notification for their final status and effective date.
Conclusion
FBR’s faceless assessment framework signals a move towards digital tax administration in Pakistan. Taxpayers should keep their records organised, monitor IRIS regularly and respond carefully to tax notices to help protect their legal and financial interests.
Disclaimer: This article is for general informational purposes only and does not constitute legal or tax advice. The applicable law and latest FBR notifications should be reviewed for individual circumstances.