The National Board of Revenue (NBR) has stated that there is no provision for filing an income tax return with ‘zero return’. Submitting a return declaring zero income is legally punishable, and withholding such information may result in imprisonment for up to five years.
Clarification from NBR on ‘Zero Return’
In a statement issued on Sunday (10 August), the NBR addressed widespread misinformation circulating on social media regarding ‘zero return’ filings.
| Misconception | Reality |
| Taxpayers can submit returns with all fields marked as zero | There is no such provision under the Income Tax Act, 2023 |
| Zero return is a legitimate filing option | Declaring zero income, expenditure, assets and liabilities is illegal and considered a criminal offence |
According to the NBR, some taxpayers have been misled by such false claims on social media, resulting in the submission of false declarations regarding their income, expenditure, assets, and liabilities.
Legal Obligations Under the Income Tax Act, 2023
The NBR emphasised that under the Income Tax Act, 2023, every taxpayer is legally obligated to declare their true income, expenditure, assets, and liabilities accurately in their tax return.
Failure to do so, including declaring any of these items as zero when they are not, is illegal and constitutes a criminal offence.
| Legal Provision | Penalty |
| Sections 312 and 313 of Income Tax Act, 2023 | Imprisonment for up to five years for submitting false or incorrect information |
The board reiterated that declaring zero income, expenditure, assets, and liabilities without accuracy is not recognised by law and carries severe consequences.
NBR’s Appeal to Taxpayers
The NBR urged taxpayers to recognise that accurate declaration of income and related financial information is a vital civic and legal duty.
- If a taxpayer’s actual income is below the taxable threshold, no tax is due.
- However, taxpayers must still submit truthful information and cannot submit ‘zero’ or ‘nil’ returns arbitrarily.
The NBR expressed hope that all taxpayers will act responsibly, declare their actual financial information, and contribute with pride to the nation’s development. The board also warned against falling prey to deceptive social media posts promoting ‘zero return’ filings, cautioning taxpayers to protect themselves from imprisonment and financial penalties.
Current Tax Filing Statistics
- Approximately 1.7 million taxpayers filed returns online last fiscal year.
- Of these, 70% submitted returns without paying any tax.
- Currently, there are around 11.2 million taxpayers holding Tax Identification Numbers (TINs).
- About 4 million taxpayers submit returns annually.
- From the current fiscal year onwards, all taxpayers will be required to file their returns online.
