FBR starts examining incomes of debt, credit card holders

ISLAMABAD: Federal Board of Revenue (FBR) has started examining incomes of persons making payments through debt and credit cards.

Sources in the FBR said that banks had provided details of persons, who made payments through debit and credit cards above Rs200,000 in a month.

The banks have provided information of transactions made through payment cards during July 01 – December 31, 2019.

The sources said that the banks are required to file bi-annual statement included a list of payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to rupees two hundred thousand or more during the preceding calendar month.

The banks are also provide of withholding tax deducted on persons remitting amounts abroad through credit or debit or prepaid cards.

According to Section 236Y of Income Tax Ordinance, 2001, every banking company shall collect advance tax at the rate of one percent at the time of transfer of any sum remitted outside Pakistan, on behalf of any person who has completed a credit card transaction, a debt card transaction, or a prepaid card transaction with a person outside Pakistan.

The tax collected under this head is adjustable against the payable tax by a person filing income tax return.

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