Immediate Tax Recovery After Notice Without Payment Deadline Unlawful: Experts

Tax practitioners have declared the same-day tax recovery from bank accounts immediately after issuing notices under Section 140 of the Income Tax Ordinance as unlawful. They stated that the law requires the Commissioner Inland Revenue to set a specific future date for payment in the notice. The Federal Board of Revenue (FBR) often recovers funds within minutes or hours of uploading appellate decisions, without giving taxpayers time to respond. In several cases, tax demands worth billions are raised through return amendments, and Section 140 notices are issued the same day. Recovery from bank accounts is then executed within 30 minutes, sometimes late at night. Section 140(1) requires a deadline to be explicitly mentioned in the notice itself. Experts said this practice violates procedural safeguards and constitutional rights by denying taxpayers the chance to comply or appeal. They stressed that even coercive measures must follow due legal process.