What Information Do Banks Share with FBR?

What Info Do Banks in Pakistan Share with Federal Board of Revenue? Complete Details with Explanation and FAQs in Urdu and Englih

Did you know that your banking activities are now closely monitored by the Federal Board of Revenue (FBR) in Pakistan? Whether you’re a filer or a non-filer, if you make large financial transactions, your bank is legally bound to report your data to FBR.

This data-sharing process is part of FBR’s smart monitoring system aimed at preventing tax evasion and identifying unreported income.

What Information Do Banks Share with FBR?

Let’s explore exactly what kind of information banks provide to FBR and why this matters for every account holder, especially non-filers.

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1. Daily and Monthly Cash Withdrawals

If you withdraw Rs. 50,000 or more in a single day or your total cash withdrawals exceed Rs. 1 million in a month, your bank automatically reports this activity to FBR.

FBR uses this information to verify whether your declared income supports such withdrawals and whether you are paying your due taxes.

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2. Large Bank Deposits

Deposits of Rs. 10 million or more in a single month trigger automatic reporting to FBR.

This mechanism helps FBR detect suspicious deposits, potential benami (anonymous) accounts, and undeclared sources of income.

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3. High Credit Card Payments

If you make credit card payments of Rs. 200,000 or more in a month, that data is also shared with FBR.

This helps authorities assess your spending habits and match them with your declared income in your tax returns.

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4. Profit on Bank Deposits and Withholding Tax

If you are earning profit (interest) on your savings or fixed deposits and withholding tax is deducted, the bank shares this information with FBR as well.

FBR uses this data to evaluate your passive income and to ensure you’ve disclosed it properly in your tax filings.

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5. Monitoring of Business Accounts

For business account holders, if monthly deposits exceed Rs. 10 million, the bank is required to report such activities.

This allows FBR to cross-check whether the business is paying taxes on its revenue and maintaining proper financial transparency.

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Frequently Asked Questions (FAQs)

Q1: Do all banks share customer data with FBR?

A: Yes. All banks operating in Pakistan are required by law to share specific financial data with FBR through a centralized reporting system.

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Q2: I’m a filer. Will my transactions still be reported?

A: Yes. Whether you are a filer or not, if your financial activity crosses certain thresholds, it will be reported. However, filers who have disclosed their income properly generally don’t face legal trouble or notices.

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Q3: What action does FBR take against non-filers?

A: FBR may issue a notice under the Income Tax Ordinance 2001, asking for the source of income. Non-filers may face audits, fines, or other legal actions if they fail to justify their transactions.

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Q4: How can I find out if FBR has taken action on my transactions?

A: FBR will send you a notice either by post or through the IRIS portal. You can also monitor your tax status by logging into your account on the FBR website.

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Q5: What’s the best way to avoid legal trouble?

A: File your income tax return on time, declare all sources of income, and maintain transparency in your financial affairs. This is the safest and most responsible approach.

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Summary

Banks in Pakistan now play an active role in helping FBR monitor high-value financial transactions. If you’re withdrawing large amounts of cash, depositing millions, using credit cards heavily, or earning interest income, chances are your data is already with FBR.

To stay protected:

• File your income tax return regularly.

• Disclose all income and expenses accurately.

• Avoid becoming a target for tax audits and penalties.

 

 

Final Words

Being compliant with tax laws not only helps you avoid legal issues but also contributes to the country’s economic stability. Stay informed, stay legal. In the last i Ahsan Karim Advocate high court has also given the summary of above article in Urdu language too just for you.

ہوشیار ہو جائیں!
بینک آپ کی بڑی ٹرانزیکشنز کی مکمل رپورٹ ایف بی آر کو دے رہے ہیں!

اگر آپ:

• یومیہ 50,000 روپے یا ماہانہ 10 لاکھ سے زائد کیش نکلوا رہے ہیں

• 1 کروڑ روپے یا اس سے زیادہ رقم اکاؤنٹ میں جمع کروا رہے ہیں

• کریڈٹ کارڈ سے 2 لاکھ یا زائد کی ادائیگی کر رہے ہیں

• بینک منافع لے رہے ہیں یا کاروباری اکاؤنٹس چلا رہے ہیں…

تو یہ ساری معلومات ایف بی آر کو منتقل ہو رہی ہیں!
نان فائلرز کے لیے نوٹس، جرمانے اور آڈٹ کا خطرہ بڑھ گیا ہے۔

ابھی فائلر بنیں
انکم ٹیکس ریٹرن فائل کریں
قانون کی نظر میں محفوظ رہیں

I highly recommend you to read my following article too for avoiding any kind of fraud in Pakistan at the time of buying any property;

Ultimate Guide to Safely Buying Property in Pakistan and Avoiding Fraud

Note-Remember that FBR can change its policies any time and now FBR is also sharing information with NAB and we shall write a separate detailed article on it.