Section 165A requires banks to report specified cash withdrawals, large deposits, credit card payments, profit on debt and newly opened or redesignated business accounts to the FBR.
The Federal Board of Revenue (FBR) has outlined requirements for banks to provide information about account holders and specified financial transactions during Tax Year 2027.
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According to the Income Tax Ordinance, 2001, updated up to June 30, 2026, Section 165A establishes reporting obligations for banking companies for the tax year running from July 1, 2026, to June 30, 2027.
Under the provision, banks must arrange to provide the FBR with information in the prescribed form and manner, notwithstanding conflicting provisions in other laws, including banking and economic reforms legislation.
The reporting requirements cover several categories of financial activity. Banks must provide details of individuals making cash withdrawals exceeding Rs50,000 in a day where aggregate withdrawals reach Rs1 million or more during the preceding calendar month, along with the tax deducted.
Banks must also report deposits totalling Rs10 million or more during the preceding calendar month. The requirements further cover credit card bill payments aggregating Rs200,000 or more during the month.
In addition, banking companies must submit details of persons receiving profit on debt and the tax deducted during the preceding financial year. They are also required to report business accounts opened or redesignated during each preceding calendar month.
Section 165A requires every banking company to nominate a senior officer at its head office to coordinate with the FBR and provide additional information and documents requested by the Board.
The provision also protects banks and their officers from civil, criminal or disciplinary proceedings for furnishing information required under the Income Tax Ordinance.
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However, the information received by the FBR must remain confidential and, subject to Section 216, may be used only for tax purposes.
The reporting framework strengthens the tax authority’s access to specified financial information to support tax monitoring and compliance.