With Pakistan’s tax authorities stepping up efforts to broaden the tax base, your cash withdrawals from banks are now under closer scrutiny. The Federal Board of Revenue (FBR) tracks significant cash withdrawals to ensure tax compliance, and banks are required to report details of large transactions.
📌 When Does FBR Take Notice?
Under Income Tax Rules, 2002 (amended up to November 24, 2023), banks report cash withdrawals exceeding Rs1 million in a single month to the FBR.
🔍 What Information Banks Report
For withdrawals above Rs1 million, banks provide the following details:
• CNIC, Passport, or National Tax Number (NTN)
• Name and title of account holder
• Residential status (resident/non-resident)
• Address and telephone number
• Account number (IBAN) and account opening date
• Business, profession, or occupation
• Amount of cash withdrawn during the month
• Amount of tax deducted
🏦 Legal Framework
The reporting requirement is defined under Rule 39A to 39D of the Income Tax Rules, 2002:
• Rule 39A: Defines account statements, reporting banking company, cash withdrawal statements, and related forms (Form A-D).
• Rule 39B: Specifies the manner of furnishing information to the FBR.
• Rule 39C: Designates the banking company officer responsible for submitting reports.
• Rule 39D: Sets deadlines – monthly statements within 15 days of month-end, and annual profit on debt statements within three months of the year-end.
✅ Key Takeaway
If your monthly cash withdrawals exceed Rs1 million, the FBR will receive your transaction details. This is part of Pakistan’s push for tax transparency and compliance.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Readers should consult the FBR or a qualified tax professional for guidance specific to their situation.