ISLAMABAD: After settlement of long delayed matter, the banks will provide the details of all accounts from which withholding tax has been deducted on withdrawal of cash during last fiscal year 2014-15 to the Federal Board of Revenue (FBR).
As per details, when rate of tax 0.1 percent was imposed on cash withdrawal, FBR had asked the banks to share the information of account holders about the payment of WHT on bank transaction in a year but the banks provided the details only regarding the collection of tax made by branches instead of account holders.
This situation caused rift between banks and FBR and later the case was brought to court for settlement.
Through this exercise, FBR wanted to trace the potential taxpayers those are not in tax net and not filing the tax returns. However, FBR made some amendments in law to bind the banks to provide the details of account holders, about the deduction of withholding tax.
Now, banks are agreed to give particulars of account holders along with the details of WHT collection from them.
