If you are living in Pakistan but have been assessed to tax in Azad Jammu & Kashmir (AJK) or Gilgit-Baltistan (GB), it is important to know that the Federal Board of Revenue (FBR) can initiate tax recovery proceedings against you. This ensures tax compliance across regions, even when local authorities cannot recover dues directly. For tax year 2026, FBR’s powers are outlined under Section 146 of the Income Tax Ordinance, 2001. Here’s an interactive guide to help you understand the process. 🏛 Authority Behind Recovery Under Section 146(1): • If a taxpayer assessed in AJK or GB fails to pay tax, and the local tax authorities cannot recover it because: 1. The taxpayer resides in Pakistan, or 2. The taxpayer has no property in AJK or GB, Then: • The Deputy Commissioner of AJK or GB can issue a certificate of recovery. • On receiving this certificate, the FBR Commissioner in Pakistan can recover the tax according to the provisions of the Income Tax Ordinance. 📝 What Must the Recovery Certificate Include? Under Section 146(2), the certificate must clearly specify: 1. Place of residence of the taxpayer in Pakistan 2. Description and location of movable or immovable property in Pakistan 3. Amount of tax payable by the taxpayer 📌 The certificate allows FBR to target assets and enforce payment within Pakistan. âš– How FBR Recovery Works in Practice Once a certificate is received: • FBR can use its standard tax recovery powers, including: o Attachment and sale of movable and immovable…