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Filing a “zero tax return” without accurately reporting actual income, expenses, assets, and liabilities is a punishable offense under the law. According to the Income Tax Act, providing false or incorrect information in a return could lead to imprisonment of up to five years.

In a statement issued on Sunday (10 August), the National Board of Revenue (NBR) warned taxpayers against such practices.

The NBR clarified that the Income Tax Act 2023 contains no provision for submitting any type of “zero return.” As per the law, a taxpayer must disclose their actual income, expenses, assets, and liabilities in their return.

The warning follows the NBR’s observation of misleading posts circulating on social media, suggesting that all fields in a return can be filled with “zero” to submit a so-called “zero return.” Acting on such misinformation, some taxpayers have been declaring false information in their returns.

NBR stressed that under the Income Tax Act 2023, declaring zero for any of these categories — income, expenses, assets, or liabilities — without reflecting the actual figures is entirely illegal and constitutes a criminal offense. Sections 312 and 313 of the Act stipulate imprisonment of up to five years for taxpayers who provide false or inaccurate information in their returns.

NBR Public Relations Officer Al Amin Sheikh said that declaring correct information regarding income, expenses, assets, and liabilities is both a legal and civic duty of every taxpayer. If a taxpayer’s actual income is legally non-taxable, they are not required to pay any tax — but they must still submit accurate information. The law does not allow filing a return showing zero income, expenses, assets, and liabilities simply to avoid payment.

The NBR urged all taxpayers to act responsibly by accurately disclosing their financial information and contributing proudly to national development. It also advised avoiding fraudulent “zero return” traps spread on social media to protect themselves from imprisonment and fines.