Finally, your Bank will provide real-time information related to your bank account in respect of cash deposits, withdrawals, credit card payments and even your profits to Federal Board of Revenue (FBR) under Section 165 and 165A of the Income Tax Ordinance, 2001.
The interface developed by the banks will provide technical solutions and share real-time information with FBR. It means that Banks will share your every transaction with FBR at the same time you receive an SMS from your bank.
In January 2019, “The News” broke this news that Pakistan Banking Association (PBA) Account Holders secrecy will not be confidential anymore and FBR to get Bank Account details including all financial transactions by the end of January. The agreement was signed in November 2019 to provide the bulk of information to FBR six months of the current fiscal year.
“Through Statutory Regulatory Orders (SRO) 773 Banks must provide the information related to profit and debt and particulars including NIC number, Passport Number, NTN number, Telephone number, IBAN number, profession & address of Account holder to FBR”
This Statutory order is issued through the Finance Act 2020 and the Ordinance of Income Tax is amended to comply with the recommendations of the Financial Action Task Force (FATF).
The example set by the PTI Government in the modern world on account of undocumented or suspected monetary transactions is one of its kind in the history of Pakistan.
According to the statistics released by the State Bank of Pakistan, deposits reached an all-time high at Rupees 14trillion in December 2019. Despite several checks and balances implemented by the FBR the Banking Industry also recorded a Deposit surge in March 2020 up to Rupees 14.8 trillion.
It is pertinent to mention here that FBR already, based on amendments to the Banking Companies Reporting Rules 2010, directed Banks to compile the five-year banking transactions history record for its Account holders.