Furnishing of information by banks under section 165A of the Income Tax Ordinance, 2001

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UPDATE SBP turns down FBR request for data of account-holders



Furnishing of information by banks under section 165A of the Income Tax Ordinance, 2001 

Section 165A of the Income Tax Ordinance, 2001 inserted through the Finance Act, 2013 requires banking companies to provide information to the Federal Board of Revenue notwithstanding anything contained i:n any law for the time being in force. By virtue of amendments introduced in section 165A of the Ordinance through the Finance Act, 2018 banks are obliged to make arrangements for providing the following information to the Board in the prescribed form and manner:- 

(i) List of persons containing particulars of cash withdrawals exceeding Rs. 50,000/- in a day and tax deduction thereon for filers and non-filers, aggregating to Rs. 1 million or more during each preceding calendar month. 

(ii) A list containing particulars of deposits aggregating Rs. 10 million or more made during the preceding calendar month. 

(iii) A list of payments made by any person against credit card bills aggregating Rs.200,000/- or more during the preceding calendar month. In addition to the aforementioned information(s) banks, pursuant to the passage of the Finance Supplementary (Amendment) Act, 2018 shall now also be obliged to furnish the following additional information:- 

(iv) A list of persons receiving profit on debt exceeding Rs. 1 million for filers and Rs. 500,000/- for non-filers alongwith information regarding tax deduction thereon during the preceding financial year. 

It would be pertinent to mention that banks shall be obliged to provide the information mentioned at Serial No (i), (ii) and (iii) to the Board on a monthly basis whereas the information at Serial No (iv) is to be provided on an annual basis.

Banks asked to provide information of persons withdrawing cash above Rs. 50,000/-


Comments

  1. Anonymous13 November 2018 at 02:56

    Dear Mr. Zeeshan
    Hope you are well.
    I got your email from your blog.

    I work as a free lancer from home for a couple of foreign companies and get paid for the online research, contact and lead generation online support, database management and sales services.

    1. I want to know if foreign remittance paid via banking channels coming to individual accounts in Pakistan and the converted to pkr, is taxable? I guess limit is upto 1%

    2. Some foreign foreign banks do not transfer to individual accounts and ask to be paid to company account as well. So I was wondering if I register a sole proprietor company with myself as owner and if foreign remittance comes to this sole proprietor account from overseas via banking channels and converted to Pkr, would it be taxable as well?

    3. Also, incase of foreign remittance arriving to pvt ltd company account would it be taxable too?

    Thanks in advance

    ReplyDelete

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