If you did not file your tax return for 2025, you could face serious restrictions from the Federal Board of Revenue (FBR). The Income Tax Ordinance, 2001 empowers the FBR under Section 114C to limit economic transactions of non-filers, ensuring compliance and discouraging tax evasion.
This interactive guide explains what actions FBR can take, thresholds, exemptions, and how taxpayers can remain compliant.
What Restrictions Can FBR Impose on Non-Filers?
Section 114C allows the FBR to block certain economic activities for non-filers or “ineligible persons,” including:
1. Motor Vehicles
o Non-filers cannot book, purchase, or register vehicles exceeding thresholds in the Fifteenth Schedule.
2. Immovable Property
o Purchase or registration of property above the specified threshold is blocked.
3. Investments in Securities or Mutual Funds
o Non-filers cannot open or maintain accounts if total investments exceed Fifteenth Schedule limits.
4. Bank Cash Withdrawals
o Cash withdrawals exceeding the threshold are restricted.
⚠ Interactive Tip: Check the Fifteenth Schedule for current thresholds to avoid surprises.
Who is Exempt from These Restrictions?
Some categories of people are not subject to these restrictions, including:
• Non-resident individuals
• Public companies
• Certain transactions like minor purchases (as notified by FBR)
Key Definitions
Understanding the law requires clarity on some terms:
• Eligible Person:
o Filed income return for the preceding tax year or
o Submitted Sources of Investment & Expenditure Statement with sufficient resources
o Includes immediate family members: parents, spouse, dependent children
• Ineligible Person:
o Anyone who does not qualify as an eligible person
• Sufficient Resources:
o At least 130% of cash or equivalent assets, including:
Cash in PKR or foreign currency
Gold, stocks, bonds, receivables, and other cash equivalents
o Applies to individuals and companies based on their wealth or financial statements
💡 Pro Tip: Filing returns and declaring resources ensures you remain an eligible person, avoiding transaction blocks.
How Restrictions Are Enforced
The FBR can impose restrictions from the date notified in the official Gazette, and thresholds may be adjusted up or down. Restrictions can cover:
• Vehicle registration
• Property transactions
• Investments in securities
• Bank withdrawals
✅ Interactive Tip: Maintain proof of filing and declared resources to quickly resolve any issues with authorities.
Quick Action Checklist for 2025 Non-Filers
1. ✅ Verify if you are on the Active Taxpayers’ List (ATL).
2. ✅ File your 2025 tax return immediately.
3. ✅ Submit a Sources of Investment & Expenditure Statement, if applicable.
4. ✅ Ensure your declared resources meet 130% threshold.
5. ✅ Notify banks, investment firms, or vehicle/property authorities once filing is complete.
📊 Interactive Feature Idea: A step-by-step compliance tracker can help you ensure all transactions are cleared and eligible under Section 114C.
Why Compliance is Critical
Non-filers risk:
• Blocked economic transactions
• Inability to register vehicles or property
• Restricted access to investments or bank withdrawals
• Legal complications and scrutiny from FBR
Filing your tax return on time and declaring sufficient resources is the safest way to avoid restrictions.
📌 Key Takeaway: Section 114C empowers the FBR to enforce compliance, but proactive filing keeps you eligible and free from economic restrictions.
FAQ
Q1: Does this apply to minors or non-residents?
• No, minors, non-residents, and certain other categories are exempt.
Q2: Can my family members make purchases on my behalf?
• Immediate family members are treated as eligible if the primary filer is compliant.
Q3: How can I lift restrictions after filing?
• Submit proof of filing and declared resources to the relevant authorities.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal or professional tax advice. Taxpayers should consult a qualified tax advisor or the Federal Board of Revenue (FBR) for guidance specific to their situation. The author and publisher are not responsible for any consequences arising from actions taken based on this information.