Monitoring of Banking Transactions above PKR 1 Million by FBR
All the banking institutions that are operating within the country are directed by the Federal Board of Revenue (FBR) to share the data of all the people who are withdrawing more than PKR 50,000 per day and PKR 1 million per month. The banks are further asked to provide complete details on WTH (withholding tax) sums that are being collected through the transactions that are above PKR 50,000.
A similar notification was shared by FBR back on April 17, 2018. With this announcement, the bureau also amended SRO 1165 that was initially introduced in September 2018. As per the FBR officials, the previous SRO amendment was mandatory as previously there was no obligation for the banks to share all the details of their WHT collections that were made against the banking transactions which was exceeding the mentioned per day as well as per month transaction limits.
As per the sources, the FBR is going to closely monitor all the transactions that are being carried out from the bank accounts of both account holders, either they are income tax return filers or non-filers. Currently, FBR is planning to inquire about the sources of income being generated against these account holders based on the details that were provided by the account holders during the account opening process.
By taking this massive measure, it is expected that it will be helping the FBR in keeping a check and balance on the tax evasion practices throughout and will also be bringing more potential taxpayers in the light under the tax net.
The FBR has also suggested four different rates for tax amnesty scheme. These rates would be 1%, 5%, 10% and 15% on foreign assets, domestic assets, foreign liquid assets and benami assets. These rates can be lowered if the individual is ready to bring back their assets and wealth to Pakistan.