New law requires banks to share account holder’s info with FBR

ISLAMABAD : Federal Board of Revenue (FBR) will get information of deposits, payments and profit on debt of account holders from banking companies. According to new rules proposed through SRO 686(I)/2020, which was issued a day earlier, to be inserted into Income Tax Rules, 2020, the banks shall be required to furnish information in the manner as specified in account holders’ deposits statement, credit card payments statements, cash withdrawal statement and profit on debt statement. The new draft rules the FBR notified four different forms to obtain information of deposits, withdrawals, payment through credit cards and persons receiving profit on debt. The rules would help in obtaining information from banks under Section 165A of Income Tax Ordinance, 2001 As per the amendment the banks shall provide information included: a list of persons containing particular cash withdrawal aggregating to Rs one million or more during a month; list of persons depositing Rs10 million or more in a month; persons making payment through credit/debit card above Rs250,000 in a month. Under the new rules, the banks shall provide details of persons making deposits, withdrawal included: CNIC/NTN, name, address, account opening date, IBAN, resident/non-resident status etc. Under the new rules the banks shall be required to provide such information of deposits, withdrawal and payment through credit/debit cards on a monthly basis. However, the information of recipients of profit on debts shall be furnished within three months from the end of the financial year.

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