The National Board of Revenue (NBR) has launched a nationwide special monitoring drive to ensure the accurate deduction of Tax Deducted at Source (TDS) and its timely deposition into the government treasury.
To achieve this, special teams from various tax zones are conducting field visits to commercial and economic establishments, verifying physical documents, and auditing digital data.
In a press release issued on Saturday (July 19), the NBR stated that this initiative has been strengthened to raise awareness among taxpayers and relevant institutions regarding the legal powers vested in tax officials under Section 147 of the Income Tax Act, 2023.
According to the press release, the law empowers tax officials to enter and inspect the office, business center, or premises of any commercial or economic establishment.
Furthermore, they hold the authority to call for and examine various financial documents, including books of accounts, vouchers, bank statements, and receipts.
In addition, officials can examine data stored in the establishment's computer systems, cloud servers, digital records, or other electronic devices if necessary.
The NBR also noted that officials have the authority to bypass passwords or encryption to access data if required.
To verify whether source tax has been accurately deducted and deposited, tax officials are authorized to temporarily seize necessary account books, documents, electronic records, or devices and keep them in their custody.
They can also collect copies of any document, image, or account, and apply identification marks or seals on them.
The NBR warned that creating obstacles or non-cooperation in these revenue collection activities attracts penalties under Section 147(2) of the Income Tax Act, 2023.
The press release urged taxpayers to deposit the deducted source tax into the government treasury via e-Challan, ensuring the mention of the correct legal sections and prescribed economic codes.
Furthermore, if there is any ambiguity, complexity, harassment, or complaint regarding the enforcement of Section 147, taxpayers are advised to contact the member-secretary of the NBR-formed committee via email at [email protected].
