What Does ‘Order to Make Self-Assessment Under Section 120’ Mean in Pakistan?
If you have filed your income tax return on the FBR portal and received a message titled “Order to Make Self-Assessment under Section 120,” this is a standard confirmation notice from the Federal Board of Revenue (FBR). It means your return has been successfully accepted and processed under the self-assessment scheme.
Understanding Section 120 of the Income Tax Ordinance, 2001
Section 120 allows taxpayers to assess their own income, calculate tax liability, and file it voluntarily. When a return is submitted completely and accurately, FBR issues an automatic order under Section 120, treating your declared figures as final unless selected for audit or review.
What This Order Means for You
It confirms that your return is accepted by the FBR. No further information or action is needed unless you are selected for audit (Section 177) or amendment proceedings (Section 122). Your declared income and tax liability are now legally recognized.
No Immediate Action Required
Once the order is issued, it signifies that your self-assessment stands approved and you are considered compliant for that tax year. You are also added to the Active Taxpayer List (ATL) if all other conditions are met.
Legal Standing of Section 120 Order
This order holds legal value as your officially accepted tax assessment. However, it does not prevent the FBR from issuing notices later if inconsistencies or red flags are detected.
Conclusion
An Order under Section 120 is a positive acknowledgment of your tax compliance. It confirms that the FBR has accepted your filed return and determined your tax obligation based on your self-declared figures. Keep a copy of the order for your records, and ensure timely tax filing every year to stay compliant.
