NBR launches special nationwide drive to verify tax deduction compliance

The National Board of Revenue (NBR) has intensified nationwide monitoring and verification of tax compliance, asking tax zones across the country to deploy special teams to ensure proper deduction and deposit of taxes at source under the Income Tax Act, 2023.

The revenue authority said the special drives are being conducted as per Section 147 of the Income Tax Act, 2023, which empowers tax officials to inspect businesses and verify whether taxes deducted at source have been correctly deposited into the government treasury.

The NBR urged all businesses, organisations and taxpayers to remain aware of the legal authority vested in tax officials under the law and to cooperate fully during inspection and verification activities.

According to the revenue authority, Section 147 authorises tax officials to enter any commercial or economic establishment, business premises or office without obstruction for on-site inspections.

During such visits, officials are empowered to examine and requisition account books, vouchers, bank statements, receipts and any other documents related to financial transactions or business activities.

The law also permits tax officials to inspect information stored in computer systems, cloud servers, digital records or electronic devices. Where necessary, they may gain access to password-protected or encrypted systems to verify tax-related information.

In addition, officials are authorised to temporarily seize and retain account books, documents, electronic records or digital devices if required to verify the accuracy of taxes deducted at source.

They may also collect copies of documents, images or account records and place identification marks or official seals on them for verification purposes.

The NBR said these powers are aimed at ensuring transparency in withholding tax administration and preventing revenue leakage through inaccurate or incomplete tax deductions.

The revenue authority also reminded taxpayers that Section 147(2) of the Income Tax Act provides for penalties against any individual or organisation that obstructs, resists or fails to cooperate with tax officials in carrying out their statutory duties.

The NBR urged all withholding tax deductors to deposit taxes deducted at source into the government treasury through the electronic challan (e-Challan) system, ensuring that the correct legal provision and the appropriate economic code are mentioned while making payments.

To address concerns over the implementation of Section 147, the NBR advised taxpayers facing any ambiguity, operational difficulty, alleged harassment or grievance to contact the member secretary of the NBR’s Section 147 Committee directly via email at assistance147nbr@gmail.com.

The latest move comes as the tax authority seeks to strengthen compliance, improve monitoring of withholding tax collections and enhance revenue mobilisation through stricter enforcement of existing tax laws.

It has been assigned a revenue collection target of Taka 6.04 lakh crore for the 2026-27 fiscal year.

This target accounts for the majority of the overall Taka 6.95 lakh crore total government revenue collection goal for the period.