Filing ‘Zero Tax Return’ is punishable by law: NBR

The National Board of Revenue (NBR) has said that taxpayers are being misled by spreading the false concept of ‘zero return’ on social media. Influenced by this, some taxpayers are submitting their income, expenses, assets and liabilities by writing ‘zero’ in all the boxes. The NBR has warned that filing such zero tax returns is completely illegal and is a punishable offense under the law.

In a press release on Sunday (August 10), the NBR said that there is no section or provision called ‘zero return’ under the Income Tax Act, 2023. A taxpayer must accurately show his actual income, expenses, assets and liabilities in the return. Filing a false return by hiding any information or showing it as zero can lead to a maximum imprisonment of 5 years under sections 312 and 313 of the act.

The press release further said that even if the actual income is not taxable, it is mandatory to display all the information correctly in the return. But there is no scope for hiding the real information and showing 'zero'.

The NBR has urged taxpayers to display correct information as responsible citizens. At the same time, it has advised not to fall into the trap of fake 'zero return' consultants, so that no one is unnecessarily at risk of imprisonment or fine.