The Federal Board of Revenue (FBR) is keeping a close eye on credit card transactions as part of its initiative to broaden Pakistan’s tax base. Citizens using credit cards should be aware that certain payment thresholds trigger mandatory reporting by banks to the FBR.
📌 Threshold for Credit Card Scrutiny
According to Rule 39A of the Income Tax Rules, 2002 (amended up to November 24, 2023), banks are required to report credit card payments of Rs200,000 or more per month to the FBR.
🔍 What Information is Shared with FBR?
When a credit card holder crosses the Rs200,000 monthly payment limit, banks must provide the following details:
• CNIC, NICOP, or Passport number
• NTN (if applicable)
• Name and title of account holder
• Residential status (resident or non-resident)
• Address and telephone number
• Credit card acquisition date
• Business or profession
• Amount of payments made against credit card bills
🏦 Legal Basis: Rule 39A
Rule 39A outlines the scope of information banks must provide:
1. Account holders deposits statement – Form A
2. Credit card payments statement – Form B
3. Cash withdrawal statement – Form C
4. Profit on debt statement – Form D
It also defines the reporting banking company officer, who coordinates with the FBR and submits all required information within the specified timeframes.
⏰ Reporting Deadlines
• Monthly credit card payments statements must be furnished within 15 days of the previous month.
• Annual profit on debt statements must be furnished within three months of the end of the preceding year.
• Any additional information requested by the FBR must be submitted within the time allowed by the Board.
✅ Key Takeaway
If your monthly credit card payments exceed Rs200,000, expect your bank to report the transaction to the FBR. This is part of Pakistan’s ongoing efforts to increase tax compliance and transparency in financial transactions.
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.