The National Board of Revenue (NBR) has declared filing 'zero returns' a criminal offense. The agency issued this information in a press release on Sunday to warn citizens against the recent propaganda being spread on social media.

The notification said that the National Board of Revenue has come to the notice of some posts on social media regarding the filing of 'zero returns'. In these posts, the misconception is being spread that the return can be filed by filling all the boxes as 'zero'. It is learnt that due to these misconceptions, some taxpayers have been making false declarations about their income, expenses, assets and liabilities in their income tax returns.

It further states that for the information of the esteemed taxpayers, it is hereby informed that there is no provision for filing any return called 'Zero Return' as per the Income Tax Act, 2023. As per the Income Tax Act, a taxpayer must accurately show his actual income, expenses, assets and liabilities in the income tax return. It is completely illegal to show any or all of the information as zero without showing the actual income, expenses, assets and liabilities of the taxpayer and it is a criminal offense. If a taxpayer provides false or untrue information without showing the correct information related to his income, expenses, assets and liabilities in the income tax return filed by the taxpayer, the taxpayer is liable to imprisonment for up to 5 years as per sections 312 and 313 of the Income Tax Act, 2023.

The notification states that it is the sacred civic and legal duty of a taxpayer to make correct declarations in his return regarding his income, expenses, assets or liabilities. If the actual amount of income of the taxpayer is not taxable according to the law, he will not have to pay any tax. However, even if the tax is not payable, there is no provision in the Income Tax Act to file a zero return by showing zero income, expenses, assets and liabilities without showing correct information.

It further states that the National Board of Revenue hopes that all respected taxpayers, as responsible citizens, will be proud partners in the development of the country by showing their actual income, expenses, assets and liabilities in their income tax returns. At the same time, they will protect themselves from imprisonment and fines by not falling into the trap of fraudulent zero returns spread through social media.