How to Avoid Penalties Under Section 137 of the Income Tax Ordinance

Proper administration of in-countries tax complicate is vital even to individual taxpayers and businesses. As the Pakistani tax legislation undergoes constant evolution, it’s getting more important to stay in conformity with the Income Tax Ordinance 2001. Another provision which escapes the attention of most taxpayers is mentioned in Section 137 of the Income Tax Ordinance. Also, pertains to due dates and default penalties in case of non-deposit of taxes. It is indeed a mental anguish to receive a 137 Notice from FBR. But if you know what Section137 of FBR and you take the right action in timely manner, you will be saved from huge penalties and surcharges. 

This blog delves into Section 137 of the Income Tax Ordinance, defines it and offers some practical tips on how you can prevent being penalized. And whether you yourself are on the payroll, a small-business owner or a corporation, that clarity will empower you to follow the taxes easily. 

 

What is Section 137 of the FBR? 

What is Section 137 FBR? At its core, Section 137 of the Income Tax Ordinance outlines the timelines for paying taxes assessed under the Ordinance. This section is enforced by the Federal Board of Revenue (FBR) to impose/satisfy timely deposit of tax liabilities to generate government income. Here is a closer look at some of its biggest components: 

Sub section (1): Tax on your taxable income (including minimum tax under Sections 113 or 113A) is due on the filing deadline for your annual return, typically September 30 for salaried individuals and December 31 for others. 

About Sub-section (2): Where any tax is payable under an assessment order or an amended assessment order or any other order issued by the Commissioner under this Ordinance, a notice shall be served upon the taxpayer in the prescribed form specifying the amount payable and thereupon the sum so specified shall be paid within [thirty] days from the date of service of the notice. 

Sub-section (4): Upon written application by a taxpayer, the Commissioner may, where good cause is shown, grant the taxpayer an extension of time for payment of tax due [under sub-section (2)] or allow the taxpayer to pay such tax in instalments of equal or varying amounts as the Commissioner may determine having regard to the circumstances of the case. 

Summarizing Sub-section (6): The grant of an extension of time to pay tax due or the grant of permission to pay tax due by instalments shall not preclude the liability for 4 [default surcharge] arising under section 205 from the due date of the tax under subsection 5 [(2)]. 

 

Mistakes Leading to Penalties 

Misinterpreting or ignoring Section 137 could lead to significant financial costs. So, below are the key factors that contribute to the 137 Notice from FBR. The above are the common triggers of notice for a 137 and what will be penalties on non-filing of return: 

  • Failure to file or pay tax: Not filing the return and your self-assessed tax becomes due instantly under sub-section (1). This is further strengthened under sub-section (2) in a follow-up analysis. 
  • Disputed Assessments: A post-audit translates into a Demand Notice. And if they go unpaid for 30 days, surcharges apply. 
  • Withholding Tax Failures: The provisions of Section 137 with reference to recovery from Companies if they did not deduct or deposit withholding taxes (section 149–155) are both prescribed as well as escalated with penalty for redundant tax deductions. 
  • Incomplete Records: In the absence of evidence, appealing against notices becomes a never-ending struggle only to extend its liability. 

How to Avoid Penalties? 

Section 137 penalties of the income tax ordinance are generally able to be avoided through disciplined procedures. Here’s how to safeguard your finances: 

File Returns on Time and Accurately 

  • Mark this date: Salaried employees are required to file by September 30; businesses or employers can file on December 31 (or extension because of notification). 
  • E-file through FBR’s IRIS portal to reduce the chances of errors. Verify income, deductions and credits inequality generally results in adjusted assessments and 137 Notice from FBR. 

Monitor and Respond to Notices Promptly 

  • Visit IRIS regularly to keep an eye on your inbox; many 137 Notices from FBR go digital before they are issued. 
  • Check out your last statement to make sure you received the right amount. If incorrect, collect proof (such as payment proof) and reply within the 30-day time. 

Seek Extensions Judiciously 

If cash flow is a problem, put in writing to the Commissioner asking for an extension or payment to be made by installments under sub-section (4). Offer good reasons, like audited financial statements demonstrating hardship. 

Maintain Impeccable Records 

Keep both digital and paper copies of the Returns, challans, bank statements and agreements for at least 6 years.

For companies, reconcile monthly withholding taxes and deposits with FBR-authorized banks or through the online source. 

Leverage Professional Help 

But if you have extensive submissions, hire a tax consultant or chartered accountant. They can head off problems like those from Section 177 audits. 

Stay updated via FBR’s website or apps; circulars often clarify interpretations of Section 137. 

 

Conclusion 

Navigating Section 137 of the Income Tax Ordinance doesn’t have to be daunting. What is Section 137 of the FBR and how to save yourself from penalties? Respond fast on an FBR 137 notice and making timely payments part of your regular business practice. You can avert penalties that cut into the hard-earned dividends of your business. It’s becoming easier than ever to comply with especially with FBR processes going digital (through IRIS and e-invoicing mandates). You just need to keep abreast of development and organized. 

How to Check Blacklisted Taxpayers in Sales Tax?

As it changes so often, what is essential for businesses that are not accounting based where sales tax is concerned to be compliant. Whether you are a supplier, retailer, or manufacturer checks on the status of your counterparties can avoid expensive fines, refunds being blocked and in extreme cases possible prosecution. This is where you need to be able to understand the blacklisted taxpayers. In Pakistan, FBR is very vigilant, and awareness of how to verify blacklisted taxpayer in Pakistan will help in avoiding unnecessary shutters under the headline of section 23 of the Sales Tax Act, 1990. 

In this blog, we’ll look at some of the actual steps for how to check blacklisted taxpayers in sales tax, discuss active taxpayer status online through FBR tools and other related topics such as FBR blacklist companies, the list of blacklisted taxpayers. Before you know it, you’ll be breezing through these procedures. 

 

What Are Blacklisted Taxpayers? 

The taxpayers blacklisted are those the FBR identified as non-filers, those evading taxes or committing fraud including making fake input tax claims. If you are a registered sales tax dealer, you cannot claim any input tax adjustment on the purchases which you have procured from the blacklisted suppliers and that can create problems in compliance and for your cash flow. 

Otherwise, your business in Pakistan would be audited, penalized or possibly even have its own registration suspended. Early inspection promotes risk reduction. Especially when high-traffic industries like textile, retail and manufacturing have confirmed cases of panties that are screaming I am the FBR-blacklisted company. 

 

Step-by-Step Guide 

User-friendly verification is available through FBR IRIS 2.0 portal. No searching through stacks of paperwork, everything is in a digital format for convenience. Here’s how to do it: 

Access the FBR IRIS Portal: 

Open your web browser and head to iris.fbr.gov.pk. This is the central hub for all tax verifications. 

Proceed to Online Verifications:  

Click on “Online Verifications” on the home page.  You will notice options such as Taxpayer Profile Inquiry and Exemption Certificates. 

Choose Blacklisted Taxpayer List (Sales Tax):  

You will find “Blacklisted Taxpayer List (Sales Tax)”, click on it. This software is designed to go after sales tax defaulters.  

Enter Verification Details: 

Select one of the identifiers such as CNIC (for individual), NTN (in case of company) and STRN if you are registered business. Enter the 13 digits CNIC, 7-digit NTN or 15-digit STRN number and perform the CAPTCHA.  

Submit and Review Results:  

Click “Verify”. If you’re listed on one of them blacklisted taxpayers know about it. The system retrieves data from the most current FBR database refreshed to October 2025. 

 

Integrating Active Taxpayer Status 

While focusing on blacklisted taxpayers, don’t overlook active taxpayer status online. The FBR’s Active Taxpayer List (ATL) for sales tax identifies compliant filers who aren’t blacklisted or suspended. Being on the ATL unlocks benefits like faster refunds and eligibility for government tenders. 

How to Check Active Taxpayers Online via FBR 

  1. Visit the ATL Section: From the IRIS portal or fbr.gov.pk, go to “Active Taxpayer List (Sales Tax)” under Online Verifications. 
  2. Input Parameters: Select NTN, CNIC, or STRN. Enter the details and CAPTCHA. 
  3. Verify Status: Results show if the taxpayer is “Active,” “Suspended,” or absent from the list (implying non-filer status). The ATL is updated monthly, with the latest as of October 4, 2025. 

For on-the-go checks, use SMS: Send “ATL [space] 13-digit CNIC” to 9966 for instant replies. Businesses can also download the full ATL Excel file from the FBR site for internal audits. 

Method  Best For  Time Required  Cost 
Online Portal  Detailed verification  1-2 minutes  Free 
SMS to 9966  Quick mobile check  Instant  Standard SMS fee 
Downloadable List  Bulk screening  5-10 minutes  Free 

 

How CBM Consultants Assist You? 

CBM Consultants assists companies in Pakistan to verify blacklisted taxpayers in sales tax through FBR. We conduct an online verification of their ‘Active Taxpayer’ status, screen the FBR blacklisted companies list and track down suppliers’ Sales Tax Registration Numbers (STRNs) for legitimacy. With updated records and regular checks on all his clients complete with updated tax records ensures that such firms safeguard the client from engaging businesses, which are blacklisted thus preventing input tax disallowances and/or penalties. With confidence and under our expert advice, all transactions made are in accordance with as well as clear, transparent and tax-efficient pursuant to laws of sales tax applicable in Pakistan. 

 

Common Pitfalls and Prevention 

Companies blacklisted by the FBR usually have problems which instigate from such things as fake refund claims or unregistered business activities. Previous blacklists reveal a list that included sectors such as textiles and imports, more than 60 blacklisted in past crackdowns for fraudulent inputs. To avoid entanglement:  

  • Cross-reference with ATL before invoicing. 
  • Mobile blacklist alerts from Tax Asaan app. 
  • If you are working with a potential high-risk partner, ask for their latest STRN certificate. 

The enforcement by FBR has increased from 2025, as automated tools have been catching non-filers on automation now. Vigilance has the added benefit of preventing you from being liable indirectly.  

 

Conclusion 

Learning to check blacklisted taxpayer in sales tax is not just about ticking boxes, it’s about protecting your activity in the competitive system of Pakistan. By regularly checking an online active taxpayer list and searching for FBR blacklisted companies you can mitigate risk and build trust with partners. Remember, the list of blacklisted taxpayers is your first line of defense. 

Bookmark the IRIS portal for future updates and subscribe to FBR alerts. If you own a business, you may want to talk to a tax advisor for customized planning. Compliance is growth today, stay informed and be active! 

How to Easily Check Your FBR Tax Information Online Using Your CNIC

It’s never been easier to file your taxes in the digital age particularly with the security and convenience of FBR’s powerful online tools. It does not matter if you are an employee or a self-employed professional, FBR tax detail online is important when it comes to remaining on the right side of the law and managing your finances. In this blog, we will discuss simple steps to check your FBR tax details online through CNIC. We are going to discuss FBR tax return status, FBR tax information by CNIC, FBR tax information login, FBR filer registration fees, and Taxpayer Profile Inquiry as they all are necessary to be known: at your fingertips. 

 

What is FBR Tax Information and Why Does It Matter? 

FBR tax records mean the detailed information of your filed and outstanding tax to be recorded in the record of Federal Board of Revenue. This also means your Nil tax and non-filer status, National Tax Number (NTN), filing record, outstanding liabilities and active taxpayer status. You may also know about how to get sims information using CNIC. 

Why is it necessary? 

  • Compliance Check: Be on Active Taxpayers List (ATL) to avoid penalties on property transactions, banking or even buying vehicle. 
  • Return Filing: Monitor the progress of your tax return being submitted and decided on by the FBR. 
  • Profile Updates: Complete a taxpayer profile inquiry and make sure we have the correct information. 
  • Cost Savings: Get information about FBR filer registration fees in advance to make arrangements for budget. 

This is something you won’t want to ignore, as doing so may result in fines or refund delays. We’re going to grab our digital pitchforks and try the simple online techniques. 

Complete Process 

Step 1: Quick ATL Status Check 

The quickest way to obtain elementary FBR tax details through CNIC is ATL check. This lets you know whether you’re an active filer for income tax or sales tax. 

Online ATL Check 

  • Please go to FBR ATL official website. 
  • Choose “Income Tax” or “Sales Tax” in the dropdown. 
  • Provide your 13-digit CNIC number (with no dashes) as well as the CAPTCHA code provided. 
  • Click “Search.” You’ll find an indication of your status: Active, Inactive or Non-Filer. 

This is a great tool for the non-login Taxpayer Profile Inquiry. 

SMS ATL Check (No Internet Required) 

For on-the-go verification: 

  • For Income Tax: Type in “ATL [space] Your 13-digit CNIC” and send it to 9966. 
  • For AJ&K CNIC: Type message “AJKATL5 [space] CNIC” and send to 9966. 
  • Response: You will receive your status and NTN status (in case applicable) through SMS. 

Pro Tip: If you’re inactive, move quick. File your in-process FBR tax return to reactivate. 

Step 2: Full Access via FBR Tax Information 

For in-depth information, go to the IRIS 2.0 portal – your home for FBR tax details on the internet. On this page you can see your full profile, past returns and even file new ones. 

How to Register or Log In 

If you’re new: 

Registration: 

  • Click Register. Choose Individual, AOP, or Company. 
  • Enter CNIC, email, and mobile number (SIM must be active and internet-enabled). 
  • Verify via OTP, then set a password. (Registration is free for individuals; minimal fees may apply when filing returns). 

If you already have an NTN but no login: 

  • Use E-Enrollment for Registered Persons on the login page. 
  • Enter NTN and CNIC to reset credentials. 

For existing users: 

  • Log in with NTN/CNIC, username, and password. 
  • Access “View Returns” for tax return history or “Profile” for your Taxpayer Profile Inquiry. 

Step 3: Conducting a Taxpayer Profile Inquiry 

With a Taxpayer Profile Inquiry, you can see the full scoop on your FBR tax info. In IRIS: 

  • Log in as above. 
  • Go to the “Dashboard” or “My Profile” section.  
  • Select “Taxpayer Profile” or “Inquiry.” 
  • Enter your CNIC for verification. 
  • View details: NTN Date of registration, filing status, withholding taxes and so forth. 

This is sheer gold for audits or loan applications. Correct any mismatch right there and it can save you a headache later. 

Submitting/Updating FBR Tax Return: 

If gaps are identified in your contacting, then filing the FBR tax return is easy: 

  • You will have an option of “File Return” on the menu available in IRIS. 
  • Select the form applicable for you (e.g. FM114 for salaried individuals). 
  • Provide information for income, deductions and taxes paid. 
  • Electrically file e-sign using your credentials based on CNIC. 
  • Get an acknowledgment receipt instantly. 

Deadlines matter: For tax year 2025, aim for September 30 (extendable). Late filers face surcharges. 

 

FBR Filer Registration Fees: 

Here’s the good news for most, FBR filer registration fees are minimal or nothing at all: 

  • Individuals: Free. 
  • Businesses/ AOPs: up to PKR 1000 for simplified registration but usually are waived. 
  • Companies: Included in incorporation, no additional charge. 

Always confirm on IRIS during signup, as policies evolve (e.g., Finance Act updates). 

 

CBM Consultants in Action: 

CBM Consultants is making it super-easy for people to verify FBR tax details online through CNIC. We help our customers with IRIS registration and login assistance in retrieving taxpayer profile Inquiry details. Make sure the previous FBR tax returns have been correctly filed and are made available. CBM also assists with finding and correcting mismatches in the records of taxpayers, which might otherwise give rise to issues during audits, loan applications or compliance checks. We are also responsible for filers’ registration management and to communicate any possible FBR filer registration fees, all the while keeping clients informed of important dates including the September 30 filing date that’s subject to penalties. Trusting professionals saves time and we can help to avoid mistakes while staying compliant with FBR needs.  

 

Tips for Hassle-Free FBR Tax Information 

  • Safety First: Strong passwords and two-factor authentication are a must. 
  • Keep Documents Ready: Scanned/clear photo of CNIC, income proofs (for returns). 
  • Mobile App: For on the go access use FBR IRIS app for android/iOS to verify FBR tax records by CNIC. 
  • Help Resources: Please click on FBR’s videos for return and registration filing. 
  • Beware of Scams: Utilize only official sites; avoid phishing emails. 

 

Conclusion 

With the help of this blog, now you can check your FBR tax details online through entering your CNIC number and that is all! From fast ATL SMS checks to full Taxpayer Profile Inquiry on IRIS, these utilities save time and help you stay compliant. Do not delay. Login now, check your FBR tax return status and be even more prepared for the upcoming tax season.