Written by Faisal Shahnawaz in Taxation, Top stories Taxpayers could face a penalty of Rs500,000 or 100% of the tax shortfall for false or misleading declarations under the Income Tax Ordinance. ISLAMABAD: The Federal Board of Revenue (FBR) has warned taxpayers against submitting false or misleading statements, information or documents in their Tax Year 2026 income tax returns and wealth statements as the filing deadline approaches. The deadline for filing income tax returns and wealth statements for Tax Year 2026 is September 30, 2026, leaving taxpayers limited time to review their declarations and ensure all required information is accurate and complete. FBR sources said the Income Tax Ordinance, 2001 prescribes substantial penalties for taxpayers who furnish false or misleading statements, information or documents to an Inland Revenue or Income Tax Authority. FBR outlines scope of false statements Under the relevant provisions of the tax law, a person may face a penalty for making a false or misleading statement to an Inland Revenue Authority in writing, orally or electronically. The provision covers statements contained in an application, certificate, declaration, notification, return, objection or any other document prepared, submitted or furnished under the Income Tax Ordinance. It also extends to books of account and other records maintained or produced by a taxpayer. The law further covers taxpayers who furnish or file false or misleading information, documents or statements with an Income Tax Authority, regardless of whether the material is submitted in written, oral or electronic form. Omitting material facts can also attract penalty The provisions also apply where a taxpayer omits a material matter or fact from a statement or information furnished to the tax authority, making the statement or information false or misleading in a material particular. This means taxpayers need to ensure that their declarations are not only factually correct but also complete in respect of…