ISLAMABAD: The Federal Board of Revenue (FBR) has made it mandatory for banks and electronic money institutions to report financial transactions exceeding Rs10 million, or Rs1 crore, to its central data hub under the Finance Act 2026.
The new measure will enable the FBR to automatically compare information on large financial transactions with taxpayers’ tax and banking records.
Under the Finance Act 2026, banks and electronic money institutions must provide financial information about account holders involved in transactions above the Rs10 million threshold to the FBR’s central data hub.
The automated system is designed to identify potential discrepancies between taxpayers’ declared income and significant financial activity. Where inconsistencies are detected, the information could trigger further scrutiny or action by the tax authority.
The initiative is part of the government’s broader efforts to expand the use of digital data and automated systems in tax administration.
By integrating financial transaction data with existing taxpayer records, the FBR aims to strengthen monitoring of financial activity and improve tax compliance.
The measure also represents an increased reliance on automated data matching to identify transactions that may require further examination by tax authorities.
