FBR Launches Massive AI-Driven Audit of Income Tax Returns

The number of income tax returns filed this fiscal year is expected to reach 8 million.

By News Editor On Nov 12, 2025

ISLAMABAD: The Federal Board of Revenue (FBR) has decided to monitor more than 7 million income tax returns using artificial intelligence (AI) and digital tools, sources told media.

According to FBR sources, all returns where less than 25 percent tax has been paid will be selected for audit. Returns with low tax payments will be included in a large-scale audit, which will involve 8,000 Inland Revenue officers and 4,000 auditors.

The number of income tax returns filed this fiscal year is expected to reach 8 million.

The audit will cover major companies, various sectors, and individual taxpayers. The process will be fully automated and digital, with AI-driven systems used to identify discrepancies. Microsoft Excel filters and formulas will be used for initial screening of returns, while AI and digital tools will assist throughout the audit process.
Taxpayers who have paid more than 25 percent tax will be automatically excluded from the audit list. The audit will be conducted in three phases: the first phase will focus on commercial and industrial returns, the second on single-owner and registered companies, and the third on individual and salaried taxpayers.

Action will be taken against those who provide incorrect information or whose declared assets do not match their returns. The FBR also plans to take action against taxpayers who display exaggerated income on social media.

The audit will be conducted from eight different angles to ensure thorough scrutiny. As of October 31, 5.9 million tax returns had been filed, resulting in an additional Rs. 9 billion in tax collection.

#Federal Board of Revenue FBR income tax returns

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