Written by Hamza Shahnawaz in Taxation Under SRO 2098(I)/2026, the automated system will flag factual and legal discrepancies, allowing taxpayers at least seven days to respond before further action. ISLAMABAD: The Federal Board of Revenue (FBR) has introduced electronic scrutiny of income tax returns, providing taxpayers an opportunity to identify and correct errors, explain discrepancies and take corrective action before any legal or penal proceedings are initiated. The FBR issued SRO 2098(I)/2026, introducing Rule 38B into the Income Tax Rules, 2002, under the powers granted by Section 120(2A), read with Section 237 of the Income Tax Ordinance, 2001. Under the new procedure, an automated system, including Customer Relationship Management (CRM), will process income tax returns and identify potential factual and legal mistakes or discrepancies. The system will communicate identified issues to taxpayers through online advice or advance intimation via the FBR’s IRIS portal. The relevant Inland Revenue officer may also issue the same system-generated intimation. At least seven days to respond According to Rule 38B, taxpayers will receive a specified response period of at least seven days to clarify issues, rectify errors or…