Inward remittances above Rs10 million per year require to explain source

KARACHI: The source of foreign remittances are now under questioning by Federal Board of Revenue (FBR) if inward transfer is above Rs10 million to a recipient in a year.
The officials in the FBR said that through Finance Act, 2018 the government had taken major decision to check the inflows of foreign exchange by acquiring information about sender.
In this regard Section 111 of the Income Tax Ordinance, 2001 was amended to implement the changes.
Under the new provision the tax authorities can ask for the source to any amount of foreign exchange remitted from outside Pakistan through normal banking channels exceeding ten million rupees in a tax year.
Further this amount is en-cashed into rupees by a scheduled bank and a certificate from such bank is produced to that effect.
Prior to this the inflows of remittances were remained unchecked providing a permanent amnesty to undocumented money.
It was longstanding demand of the stakeholders to put a restriction on such immunity.
Reportedly, the provision previously provided a safe way to whiten black-money or undocumented money.
After this amendment the money transfers between July 01, 2018 to June 30, 2019 will be first tax year, which it will be questionable by the FBR.

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