FBR Tax Filing and Section 116 Wealth Reconciliation with AI
Pak-LLM assists with FBR tax preparation by structuring income, deductions, and asset movements into IRIS-ready figures, flagging Section 116 reconciliation gaps, and explaining withholding rules in plain Urdu or English. It prepares and explains; it does not file on your behalf and it is not a substitute for a licensed tax practitioner.
- Written for:
- Salaried filers, freelancers, small business owners, and tax practitioners preparing multiple returns.
- Last reviewed:
- Author:
- Saad Bin Farrukh
What can an AI assistant actually do for an FBR return?
It can convert messy inputs — bank statements, salary certificates, invoices, property records — into the line items an IRIS return expects, and it can explain why a particular withholding rate applies. It cannot access IRIS on your behalf, verify your identity, or assume legal responsibility for a filed return.
- Extracts salary, business income, and exempt income into return categories.
- Reconciles opening and closing assets for the Section 116 wealth statement.
- Explains Section 149 salary withholding, Section 236K/236C property advance tax, and Section 154A export treatment.
- Drafts the narrative explanation that accompanies a wealth statement.
How does Section 116 wealth reconciliation work?
Section 116 requires that the increase in net assets in a year be explained by income that was declared or is otherwise exempt. Pak-LLM builds a year-over-year asset ledger, computes the unexplained delta, and lists the documents that would substantiate each movement.
- Tracks bank balances, property, vehicles, investments, and receivables.
- Computes the reconciliation delta against declared income.
- Flags movements that typically trigger a notice, such as large cash deposits or unexplained transfers.
- Produces a checklist of supporting evidence per line item.
Where does the AI stop and a human take over?
The AI stops at the point of legal attestation. A human — ideally a licensed tax practitioner — reviews every figure, signs the return, and files it through IRIS. Pak-LLM is a preparation and explanation tool, not a filing agent.
- No automated submission to IRIS.
- No storage of your IRIS credentials.
- Every output is labelled as a draft pending human review.
- Practitioners can review and annotate drafts inside the workspace.
How current is the tax knowledge?
The tax knowledge base is reviewed against the Finance Act in force for the relevant tax year and carries a visible last-reviewed date. Rates change with each Finance Act, so confirm the applicable year before filing.
- Rules are scoped to a named tax year, not presented as timeless.
- Each tax page states the Finance Act year it reflects.
- Users are prompted to confirm the tax year before generating a computation.
Frequently asked questions
Can Pak-LLM file my tax return directly with FBR?
No. Pak-LLM prepares and explains the figures but does not submit to IRIS. You or your tax practitioner must review and file the return.
Is Pak-LLM a licensed tax advisor?
No. Pak-LLM is a software tool operated by SBF Consultancy (Pvt.) Ltd.. It is not a tax advisory firm and its output is not tax advice. Engage a licensed practitioner for advice specific to your circumstances.
Does Pak-LLM store my financial documents?
Uploaded documents are processed for the session and are not used to train foundation models. Retention can be disabled entirely, and on-premise deployments keep documents inside your own network.
Which tax years are supported?
The knowledge base is scoped to the Finance Act year shown on each tax page. Confirm the year before generating a computation, because rates and thresholds change annually.