Written by Akhter Syed in Taxation 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”. 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,…