General guidelines for replying notices served under the Income Tax Ordinance, 2001

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One of the most common proceedings initiated by the tax officials these days is under the provisions of section 122 of the Income Tax Ordinance 2001.

This section termed as provisional assessment is probably the most technical in nature requiring detailed explanation and submission of documents. The proceedings under this section are often recurring in nature and therefore the entities should always be prepared for the same. 

However, most of the time the format of the notice under section 122 of the Income Tax Ordinance 2001 is similar in nature in various cases, that is, the observations raised in different notices of section 122 are more or less same in nature.

In this blog we will try to elaborate the general guidelines for replying notices sent under Income Tax Ordinance 2001.

One of the most important tips in handling these sort of proceedings is to gain more time and not to submit all the details at once. For this the most important thing to note is that reply of the said notice should not always be given before the compliance date. Even on the date of compliance an extension of at least 15 days should be applied.

On the next date of compliance, that is, after approval of extension it is important that only a partial reply to the notice should be submitted. A further extension for the remaining details should  again be obtained in order to gain more and more time.

Another important point to note is that it should always be avoided to submit the bank statements if required, and that the same should only be submitted in the final response . Otherwise, the same may result in raising of further queries.

For further understanding of types of notices please click here

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