NBR intensifies TDS monitoring, forms teams to inspect establishments

The National Board of Revenue (NBR) has launched a special monitoring drive across the country to ensure proper deduction and deposit of tax at source (TDS) into the government exchequer. Special teams from various tax zones are conducting on-site visits to commercial and economic establishments, verifying documents and examining digital records.

In a press release on Saturday, July 19, the NBR said the drive aims to raise awareness about the legal authority of tax officials under Section 147 of the Income Tax Act, 2023, and ensure enforcement of the law.

According to the act, tax officials may enter and inspect any commercial or economic establishment's office, business premises or grounds. They are also empowered to examine and summon books of accounts, vouchers, bank statements, receipts and other financial transaction documents.

Additionally, they may inspect information stored on a company's computer systems, cloud servers, digital records and other electronic devices if needed. The NBR said that under the law, tax officials may also break passwords or encryption to access relevant information.

Tax officials are also authorised to temporarily seize necessary books of accounts, documents, electronic records or devices to verify proper deduction and deposit of TDS. They may also take copies of necessary documents and apply identifying seals or marks.

The NBR warned that obstructing or failing to cooperate with these revenue collection activities would result in penalties under Section 147(2) of the Income Tax Act, 2023.

The revenue board has urged taxpayers to deposit deducted taxes into the government treasury through e-challans, using the correct legal provisions and designated economic codes.

If there is any confusion, complication, harassment or complaint regarding the application of Section 147, the NBR has advised contacting the member secretary of the committee at the designated email: assistance147nbr@gmail.com.