Karachi, December 9, 2023 – The Federal Board of Revenue (FBR) has taken a significant step by acquiring monthly information on account holders with deposits in banks.
The FBR’s move aligns with the updated Income Tax Rules, 2002, applicable for the tax year 2024. The newly implemented rules outline the mandatory requirement for reporting banking companies to furnish detailed information on account holders, emphasizing transparency and compliance in financial transactions.
Under Rule 39B, the reporting banking company is obligated to provide information specified in account holders’ deposits statement, credit card payments statement, cash withdrawal statement, and profit on debt statement as required by section 165A of the Ordinance. Additionally, the banking company must supply any other information upon requisition by the Board.
Rule 39C addresses the nomination of an Authorized Person by the reporting banking company, who is responsible for submitting the required information to the FBR. The nomination must occur within thirty days of the rules coming into force. In the absence of a nominated officer within the stipulated timeframe, the President or principal officer of the reporting banking company stationed at the head office assumes the role of the banking company officer.
According to Rule 39D, the designated banking company officer must submit monthly account holders’ deposits statement (Form A), credit card payments statement (Form B), and cash withdrawal statement (Form C) within fifteen days of the end of the preceding calendar month. Additionally, an annual profit on debt statement (Form D) for the immediately preceding calendar year must be submitted within three months of the year’s end. The FBR may also request any additional information or documents, and the banking company officer is required to comply within the specified time allowed by the Board.
This heightened scrutiny aims to bolster the FBR’s capacity to monitor financial activities, ensure tax compliance, and deter potential tax evasion. The move underscores the government’s commitment to fostering transparency and accountability in the financial sector, ultimately contributing to the broader economic stability of the country.
