Concealing Income Will Now Result in Heavy Fines, Jail

Under proposed changes in the Income Tax Ordinance, for people concealing income or furnished inaccurate particulars that results in revenue impact of Rs. 500,000 or more would face a fine and possible jail time. “Where, in the course of any proceedings under this Ordinance, any person has either in the said proceedings or in any earlier proceedings concealed income or furnished inaccurate particulars of such income and revenue impact of such concealment or furnishing of inaccurate particulars of such income is five hundred thousand rupees or more shall commit an offence punishable on conviction with imprisonment up to two years or with fine or both,” the clause reads. Concealment of income or furnishing of inaccurate particulars of income include suppression of any income or amount chargeable to tax, claiming of any deduction for any expenditure not actually incurred, and any act referred to in sub-section (1) of section 111. It is pertinent to mention that the clause already existed but certain changes have been proposed in the Income Tax Ordinance. More clarity is expected regarding the changes in the coming days.