The National Board of Revenue (NBR) has intensified its nationwide monitoring and verification of withholding tax compliance through special teams of its tax zones. In a press release, the NBR urged all concerned to be aware of the powers vested in tax officials under Section 147 of the Income Tax Act, 2023. This section authorises tax officials to enter and inspect premises, examine documents, and access digital records to verify the accuracy of taxes deducted at source.
Enhanced Powers for Tax Officials
Section 147 of the Income Tax Act empowers tax officials to enter and inspect, without obstruction, the premises, business centres, or offices of any commercial or economic establishment. Officials are authorised to examine and requisition books of account, vouchers, bank statements, receipts, and any documents related to economic activities. They can also inspect information stored in computer systems, cloud servers, digital records, or electronic devices, and gain access by bypassing passwords or encryption if necessary.
Penalties and Compliance
The law provides for penalties against any person who creates obstacles or refuses to cooperate with tax officials in carrying out these revenue collection activities. The NBR requested taxpayers to deposit taxes deducted at source into the government treasury through the e-Challan system by correctly mentioning the relevant legal provision and the appropriate economic code. Taxpayers facing any ambiguity, complexity, alleged harassment, or grievance regarding the implementation of Section 147 are advised to contact the Member Secretary of the NBR Committee on Section 147 via email at [email protected].
