I got, 182(2) (Notice to impose penalty u/s 182 for contravention of any of the provisions of the IT Ordinance, 2001), What to do?

Notice to impose penalty u/s 182 for contravention of any of the provisions of the IT Ordinance, 2001

Please refer to the above subject.
Being a withholding agent, it was obligatory upon you to file monthly withholding tax statements under section 165 of the Income Tax Ordinance, 2001.

However, compliance for filing of statement for above mentioned period has not been made so far. Non filing of the statement attracts penalty under section 182 of the Income Tax Ordinance, 2001. Provision of law is very clear in this regard which is reproduced as under:
“165 (2) Every prescribed person collecting tax under Division II of this Part or Chapter XII or deducting tax from payment under Division III of this Part or Chapter XII shall furnish or e-file statements under sub-section (1) by the 15th day of the month following the month to which the withholding tax pertains.”
Relevant portion of section 182 of the Income Tax Ordinance, 2001 is also reproduced as under:

S.No : 1A

Offence:
Where any person fails to furnish a statement as required under section 115, 165 or 165A within the due date. Such person shall pay a penalty of

Penalty :

Rs. 2500 for each day of default subject to a minimum penalty of ten thousand rupees

2- As you have failed to make statutory compliance of section 165 of the Income Tax Ordnance, 2001. The
undersigned, therefore, intends to impose penalty of Rs.2500/- for each day of default subject to a minimum penalty of ten thousand rupees under offence No. 1A of section 182 of The Income Tax Ordinance 2001 for default of non filing of monthly statement for the period mentioned above.
3- You are, therefore, afforded an opportunity of being heard and to furnish an explanation as to why penalty under offence No. 1A of section 182 of The Income Tax
Ordinance 2001 may not be imposed upon you for failure to furnish the above-mentioned monthly statement by the due date. Your reply should reach to the office of the undersigned on or before the due date positively. Please note that in case of failure or unsatisfactory reply, penalty proceedings shall be finalized accordingly.

What to Do After Receiving a 182(2) Notice from FBR for Contravention of the Income Tax Ordinance, 2001?

Receiving a notice from the Federal Board of Revenue (FBR) can be a stressful experience, especially when it relates to non-compliance with Pakistan’s Income Tax Ordinance, 2001. One of the most common notices is the 182(2) notice, which is issued for contravention of any provision under the Ordinance, particularly for failing to file your income tax return on time.

In this blog post guide, explains what a 182(2) notice is, why you received it, the penalties involved, and—most importantly—what steps you should take next.

Understanding the 182(2) Notice: What Is It?

A 182(2) notice is a formal communication from FBR, alerting you that you have failed to comply with a specific provision of the Income Tax Ordinance, 2001. Most commonly, it is issued when a taxpayer fails to file their income tax return under Section 114 by the prescribed deadline.

Legal Basis

Section 182(2) of the Income Tax Ordinance, 2001: Empowers FBR to impose penalties for various contraventions, including failure to file tax returns, statements, or comply with other statutory requirements.

Why Did You Receive a 182(2) Notice?

The primary reason for receiving this notice is straightforward: failure to file your income tax return on time. This could happen due to several reasons:

Forgetting the deadline
Misunderstanding your tax obligations
Technical issues with the FBR portal
Personal emergencies or unforeseen circumstances
Deliberate non-compliance5

The FBR uses its IRIS system to automatically detect such defaults and issues the notice accordingly.

What Does the 182(2) Notice Contain?

A typical 182(2) notice will include:

The tax year in question
The specific provision you have contravened (usually Section 114)
The amount of penalty being considered
A deadline to respond or show cause
Instructions for compliance or submission of a written explanation

Penalties Under Section 182(2): What Are You Liable For?

The penalties for failing to file your income tax return on time are clearly defined and can be substantial. Here’s a breakdown:

Offense	Penalty Amount
Failure to file return u/s 114	0.1% of tax payable for each day of default, up to a maximum of 50% of tax payable or PKR 40,000 (whichever is less)
Salaried person (income < PKR 5 million)	Minimum penalty of PKR 5,000
Failure to file wealth statement	0.1% of taxable income per week or PKR 20,000 (whichever is higher)
Failure to maintain records	PKR 10,000 or 5% of tax on income (whichever is higher)
Failure to deposit tax due	5% of tax in default (with additional penalties for repeated defaults)
Other contraventions (e.g., failing to issue invoices, obstructing FBR access)	Varies by offense, often fixed amounts or percentages of tax involved

Example Calculation:

If your tax payable is PKR 100,000 and you delay filing by 10 days:

Penalty = 0.1% × 100,000 × 10 = PKR 1,000

But if the delay continues, the penalty can accumulate up to a maximum of 50% of your tax payable or PKR 40,000—whichever is less.

What Should You Do After Receiving a 182(2) Notice?

1. Review the Notice Carefully

Confirm the tax year and nature of default.
Note the deadline for your response.
Check the penalty calculation and ensure it matches your situation57.

2. File Your Outstanding Return Immediately

Log in to the FBR IRIS portal.
Prepare and submit your income tax return for the relevant year.
Attach all supporting documents (salary slips, bank statements, etc.).

3. Prepare a Written Explanation (Show Cause Response)

Clearly state the reason for the delay (e.g., medical emergency, technical issues).
If your tax liability was already deducted at source (e.g., salaried employees), mention that no financial loss was caused to FBR.
Attach proof if available (e.g., medical certificates, screenshots of technical errors).

4. Submit Your Response Within the Deadline

Use the FBR IRIS portal to upload your reply or send it to the designated FBR email address.
Keep a copy of your submission for your records.

5. Follow Up with FBR

Check your IRIS account and email for updates or further instructions.
If you do not receive a response within a reasonable time, contact your local FBR office or a tax consultant.

What If You Ignore the Notice?

Ignoring a 182(2) notice can lead to:

Automatic imposition of the penalty as described above
Further legal action, including possible prosecution for persistent non-compliance
Difficulty in obtaining tax clearance certificates or conducting official business

Common Scenarios and How to Respond

Scenario	Recommended Action
Forgot to file return	File immediately, explain the reason, and request leniency if it’s your first default
Technical issues on FBR portal	Attach screenshots or error messages as evidence in your reply
All tax deducted at source (salaried)	Explain in your response and provide salary certificate or deduction details
Medical or family emergency	Attach supporting documents (medical certificates, etc.) and request waiver or reduction of penalty
Deliberate non-compliance	Seek professional advice; penalties are likely to be enforced3 5 7

How to Reply to a 182(2) Notice: Step-by-Step Guide

Log in to FBR IRIS Portal:
Access your account using your credentials.
Go to the “Notices” Section:
Find the 182(2) notice relevant to your case.
Click on “Reply” or “Submit Explanation”:
Attach your written explanation and any supporting documents.
File Your Return (if not already done):
Complete and submit the overdue return for the relevant tax year.
Submit and Confirm:
Ensure your response is submitted before the deadline.

Sample Reply to a 182(2) Notice

Subject: Response to Notice Under Section 182(2) for Tax Year 2024

Dear Sir/Madam,

I acknowledge receipt of your notice under Section 182(2) regarding non-filing of my income tax return for Tax Year 2024.

The delay was due to [reason: e.g., medical emergency/technical issues]. I have now filed my return and attached all relevant documents.

As my entire tax liability was deducted at source, no financial loss has occurred to the FBR. I request that the penalty be waived or reduced in light of these circumstances.

Thank you for your consideration.

Sincerely,
[Your Name & NTN]

Frequently Asked Questions (FAQs)

Q: Can the penalty be waived?
A: In certain cases, if you provide a valid reason and evidence (e.g., medical emergency, technical fault), the FBR may waive or reduce the penalty, especially if it’s your first default or no financial loss occurred to the government3 57.

Q: What if I have already paid all taxes through salary deductions?
A: Explain this in your reply and provide supporting documents. The FBR may be lenient if no revenue loss is involved3 57.

Q: How soon should I respond?
A: Always respond before the deadline mentioned in the notice to avoid automatic penalty imposition5 67.

Q: Can I get professional help?
A: Yes, consult a tax consultant or lawyer if you are unsure how to respond or if your case is complex57.

Summary Table: Penalties Under Section 182(2)

Offense	Penalty
Failure to file return (Section 114)	0.1% of tax payable per day (max 50% of tax or PKR 40,000, whichever is less)
Salaried (income < PKR 5 million)	Minimum PKR 5,000
Failure to file wealth statement	0.1% of taxable income per week or PKR 20,000 (whichever is higher)
Failure to maintain records	PKR 10,000 or 5% of tax on income (whichever is higher)
Failure to deposit tax due	5% of tax in default (additional penalties for repeated defaults)
Other contraventions	Fixed or percentage-based penalties as per offense2 3 4 5 7

Key Takeaways

Always file your tax returns on time to avoid penalties and legal hassles.
If you receive a 182(2) notice, do not ignore it—respond promptly and provide a clear explanation.
Filing your overdue return and submitting a well-documented reply can often lead to waiver or reduction of penalties, especially for first-time or unintentional defaults.
Maintain proper records and keep track of deadlines to stay compliant with tax laws.

Conclusion

A 182(2) notice from FBR is a serious matter but can be resolved efficiently with prompt action and proper documentation. Filing your returns on time, responding to notices, and seeking professional guidance when needed are the best strategies to avoid penalties and maintain a clean tax record in Pakistan.