Submission of zero returns punishable offence: NBR

Submission of tax returns showing zero incomes and assets would be considered a punishable offence as per the Income Tax Act, which carries a maximum penalty of five years ' imprisonment.

However, taxpayers whose incomes are below the taxable threshold but need to submit tax returns to access various public and private services may declare zero taxable income in their returns.

The National Board of Revenue (NBR) said this in a press statement on Sunday after it found that vested interests on social networking websites are misleading taxpayers by showing the way of filing zero tax returns.

"Social media posts are spreading false concepts on how to file tax returns showing all sections of tax returns as zero," the statement said. Some taxpayers have fallen into this trap by declaring zero income, zero assets and zero liabilities, it said, adding that it is completely illegal to conceal the actual incomes, expenditures, assets and liabilities in the tax returns.

The Income Tax Act-2023 has no such provision allowing zero returns.

Income tax policy member AKM Badiul Alam said individuals with incomes below taxable limit are not required to pay taxes, but their returns must reflect accurate information on assets, expenditures and liabilities.

As per section 312 and 313 of the Income Tax Act, concealment of information in the tax return is a criminal offence, carrying a maximum penalty of five years' imprisonment. The NBR called upon the taxpayers and the media to raise awareness about the illegal submission of zero returns.

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