Pakistan’s tax landscape is rapidly evolving, and NADRA is no longer limited to issuing CNICs. Under the Income Tax Ordinance, 2001, NADRA has been empowered to share data, analyze wealth patterns, and even compute indicative tax liability, making it a powerful partner of the Federal Board of Revenue (FBR). This development has major implications for taxpayers, non-filers, and those outside the tax net. 🔍 What Is Section 175B of the Income Tax Ordinance? Section 175B authorizes the National Database and Registration Authority (NADRA) to assist FBR in broadening the tax base and enforcing tax laws by sharing records and advanced data analysis. 📊 What Information Can NADRA Share with FBR? Under subsection (1), NADRA may share any records or information it holds with FBR, either on its own initiative or upon request. This includes: • Identity and demographic data • Assets and properties • Financial transactions and expenditures • Liabilities and declared wealth 🧠NADRA’s Expanded Role: Beyond Data Sharing Section 175B(2) allows NADRA to actively assist FBR by: ✅ Identifying Tax Gaps NADRA may identify persons (taxpayers or non-taxpayers) who have: • Undeclared or under-declared income • Assets or properties escaping assessment • Excessive refunds or relief • Misclassification of income 💰 Valuation of Assets If asset values declared by a person differ from: • Values notified by FBR, or • District/market values NADRA can flag such discrepancies. 🤖 AI-Based Tax Liability Computation One of the most significant changes is in Section 175B(4): 👉 NADRA can compute indicative income and tax liability using: • Artificial Intelligence • Statistical and mathematical models • Modern data analytics tools This applies to both filers and non-filers. 📩 What Happens After NADRA Computes Tax? Step 1: Notification FBR will notify the person of the indicative tax…