Tax authorities to collect information of high value bank transactions

KARACHI: The tax authorities will collect details of those banking customers who deposited over Rs10 million in their accounts during a month, bringing the high value transactions of undeclared income and assets on its radar, sources said on Monday.

The sources in the Regional Tax Office (RTO) Karachi, a revenue collecting arm of the Federal Board of Revenue (FBR), said the details would include computerised national identity card (CNIC) number; national tax number (NTN); name or title of the account; local or overseas Pakistanis residential address; account opening date; and business profession/occupation.

It also said the commercial banks and financial institutions would remain liable to provide details of the account holders, despite withdrawal of the withholding tax levy on various banking transactions.

The Finance Bill, 2021 has proposed to withdraw several withholding tax provisions related to the banking transactions, such as deposits, cash withdrawal, non-cash banking transactions, banking instruments, payments through debit and credit cards and profits on debt. However, persons making transactions under these heads would remain on the radar of the revenue board, an official of the RTO Karachi said.

Similarly, the banks would also provide similar details of account holders, while making payments through credit card above Rs200,000 in a month. The banks would also provide details of those account holders making cash withdrawal above Rs1 million in a month, besides persons making profit on their deposits on an annual basis.

According to the State Bank of Pakistan (SBP), the value of financial transactions significantly increased to Rs153.62 trillion during the second quarter (October–December) of the fiscal year 2020/21, which is 4 per cent higher, compared with Rs147.61 trillion in the previous quarter.

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