Islamabad: The Federal Board of Revenue has directed all banking institutions operating within the country to share the data of people withdrawing more than PKR 50,000 per day and PKR 1 million per month, reported a news source. In addition, the banks have also been tasked to provide details on the withholding tax (WHT) sums collected against these transactions.
The FBR shared a similar notification to this effect on April 17, 2018. Via this announcement, the bureau amended SRO 1165, which was introduced in September 2018. According to an FBR official, the previous SRO did not make it mandatory for banks to share the details on the WHT collected against the banking transactions exceeding the above-mentioned per day and per month limits.
According to sources, the FBR will monitor these transactions carried out from the banking accounts of both income tax return filers and non-filers. The FBR plans to inquire about the sources of income of these account holders based on the details provided by the banks.
This measure, reportedly, will help the FBR check tax evasion practices, and also bring more potential taxpayers into the tax net.