The new draft rules empower faceless assessment units to handle tax assessments, amendments, rectifications, hearings and related proceedings under the Income Tax Ordinance, 2001.
Islamabad, October 27, 2026: The Federal Board of Revenue (FBR) has notified draft rules specifying the functions and procedures for faceless assessment under the income tax framework.
The FBR issued SRO 1905(I)/2026 on October 26, 2026, proposing amendments to the Income Tax Rules, 2002, through the introduction of Rule 240A, titled “Functions and procedure for faceless assessment”.
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Under the proposed Rule 240A, the Faceless Assessment Unit will perform several functions under the Income Tax Ordinance, 2001.
These include best judgement assessments under Section 121, amendments or further amendments to assessments under Section 122 on the basis of audit or definite information, and provisional assessments under Section 123.
The unit will also handle orders giving effect to appellate decisions under Sections 124 and 124A, rectification of mistakes apparent from the record under Section 221, and related proceedings. These may include issuing notices under Section 176, obtaining information and evidence, and imposing penalties or default surcharges arising from the proceedings.
The draft rules state that when a case or record is allocated to an assessment unit through an automated system, the unit officer will examine the relevant record, orders under Section 111 and audit reports, where applicable, in accordance with the law and facts of the case.
The officer will issue notices under the relevant provisions of the Ordinance, giving taxpayers an opportunity to be heard. Taxpayers will be required to submit replies, documents and evidence through their designated accounts on the FBR’s IRIS system in accordance with Rule 239.
During proceedings, the unit officer may seek technical assistance, including valuation, forensic or sector-specific expertise. The officer may also request physical verification under Rule 241 and conduct electronic hearings under Section 227B.
The proposed framework sets out the responsibilities and procedures for handling tax assessments through the faceless assessment system.
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