Pakistan-based Banks have agreed to share information about account holders making cash or non-cash transactions with the Federal Board of Revenue, reported “The News”.
Sources told the paper that the banks will provide said information under an agreement. “However, banksĀ did not share the amount for transactions that will be shared with FBR for any accounts”, said the paper.
Previously banks hadĀ suggested an amount between one to five million rupees on an annual basis.
The agreement was reached after several meetings between the FBR and the Pakistan Bankers Association (PBA). The terms of the agreement are expected to be officially disclosed soon.
The Problem
FBR had issued notices to the banks whose account holders had their withholding tax deducted by the bank itself.
Masood Ali Naqvi, chairman of the Tax Reforms Commission (TRC) had confirmed that the PBA and the FBR were discussing the issue while the commission had received a draft to share their opinion.
The banks had previously withheld this info, stating legal limits on disclosing them.
The PBA had mentioned in its budget proposals for the next fiscal year that the problem under Section 165 and Section 165A of the Income Tax Ordinance 2001 is related to accessing customer information.
According to the law, banks are required to share the information with FBR via online means.
However they asked the Board to remove this permission to access the banks’ data, arguing that Section 176 already allows FBR to access information about suspicious account activity related to tax evasion.
Reasons for Confidentiality
The banks are presently deducting 0.4% withholding tax on cash transactions of Rs 50,000 and above for non-filers through Section 236P.
This section of law was introduced to increase tax collection but the banks refused due to the Banking Companies Ordinance 1962 and the Economic Reform Act 1992, which relates to customer confidentiality.
The previous sources also said that the FBR will conduct a comprehensive data check in case the banks hide or refuse to share information about the withholding tax they deduct.
Via: TheNews
They always do, don’t they?!?
No they don’t.
“The banks are presently deducting 0.4% withholding tax on cash transactions of Rs 50,000 and above for non-filers through Section 236P. ”
Not only” non-filers” but filers are paying too on cash transaction over Rs. 50,000.
Provide your NTN to your bank and they will not deduct.
Sir that is just for transfer but on cash filers have to pay as well.
yes, Ishtiaq is right
There is no deduction upto Rs.50000 whether it is on CASH or on Transfer,
On the other hand, more than Rs50000 will be charged at 0.006% for CASH and 0.004% for transfer.
Make sure you don’t fetch 50k from ATM machine other than your bank’s ATM. If I have to in case of emergency I always fetch 49,500 just to put some margin :)
P.S. It’s 0.6% and 0.4% on your total transaction amount and not 0.006%, 0.004%.
>total transaction amount
I believe it’s for the amount exceeding 50k not the total amount.
No it is for total amount if that exceeds 50000. For 80000 tax will be chargrd for 80000 and not 50000
30,000 you mean?
Sorry Yes
you have added 2 extra 0s after 0. …………
So the Aholes saved/saving billions in foreign investments but they want to suck every last drop of blood from us.
Next time bhi nooray ko vote dena jaahiloun!
nai potti ko vote daina, wo us se bhi ziada tax net open kry ga
Patwari, jootay chaatnay wala, aur Ghulam ye sab in jaise baadshah salamt k darbariyoun k hi naam hai.
Bas ye log baadshah salamat k khilaaf kuch nahi sun skte.
When is the next generation going to stand up as independent or make new parties instead of just complaining that other opportunists are taking of the opportunity of being the law makers and enforcers while the young generation lets them take the opportunity by not standing up to take any position as an independent or as a group via a new party ?
Middle class people are busy in earning ‘roti’ for their family. Woh to kabhi nahi paray ga is chakkar main.
Let’s find a less corrupt party and support it.
Make new parties or change the way elections and the government is made.
There are simple solutions to problems which people choose not to solve.
When the middle class cannot earn a roti what then ? They choose to die of hunger ?
They WILL.
Cast based voting hai yahan pe.
Sindhi mar rha hoga lekn woh “apnay zinda leader” ko hi dega.
Punjabi gatar main reh rha hoga (NA 120 for example) lekn vote Punjabi bhai ko hi dega.
Mahajiroun main albatta ab trend change ho rha hai.
Well there is some hope. get more people to understand and dicuss why they should stand up and apply to be the leader instead of living in the gutter begging for a job or roti.
excuses as usual.
Every Pakistani should understand that the taxes they are giving to the government is not Bhatta. It is the money given to government/democratic officials to work for people of Pakistan. For Hospitals/Health care, Transportation System, Water/Sewerage and Solid waste Management, Electricity. Not for corruption. So as they demanding Banks to share account holder details, they should also share details of how PUBLIC FUNDS are distributed among government officials and what they have spend and every detail should be shared through Electronic/Print media. No one in media talks about this.
@shakir: totally agreed bro
Agree Bro
FBR is not a transparent institution it is corrupt black mailer and rascal oriented department the bank customers has to retaliate on this because this customer bank relations at the time of the deal FBR was not been part of the deal so FBR has to be restricted through Law – other wise case has to be filed against FBR in the financial courts to create nuisance in customer and bank relations
For everything else, there is BITCOIN.
So long suckers.