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FBR issues new format to get cash withdrawal details from banks

FBR issues new format to get cash withdrawal details from banks

ISLAMABAD: Federal Board of Revenue (FBR) has shared a new format with the banks to obtain information of cash withdrawals by the account holders in a fresh move to net tax dodgers, it is learnt here.

Official sources told Customs Today that the purpose of obtaining information in a new format is to identify individuals who don’t discharge their tax liabilities despite having taxable income. The FBR officials said the banks will be required to provide details of cash withdrawal along with statement of deposits and monthly withholding statements.

Sources further added that the banks are required to provide information of individuals who have withdrawn cash exceeding Rs50,000 in a day and tax deductions, aggregating to one million rupees or more during a month.

The FBR amended Income Tax Rules 2002 through Statutory Regulatory Order 1165(I)/2018 for the purpose. Under the amended rules, the banks will need to share name, computerized identity card number, address and withdrawn amount during a month. The rate of withholding tax for filers on cash withdrawal above Rs50,000 in a day is 0.3 percent and in case of non-filers the rate is 0.6 percent.

The difference was introduced to increase the number of tax return filers from minuscule of Rs1.6 million. Of the total return filers, only 700,000 pay taxes, sources added.