ISLAMABAD, Pakistan: Banks must report high-value FBR bank transactions from July 1 under the Finance Act 2026, which covers account holders with deposits or withdrawals above Rs100 million in six months.
The new law adds Section 165AB to the Income Tax Ordinance, 2001, titled “Reporting of Financial Transaction Data by Banking Companies and Financial Institutions.”
Under the provision, banks and financial institutions must upload specified transaction data to a central digital data hub.
The system will use computer algorithms to compare banking records with declared income and tax information.
Banks must report account holders whose cumulative deposits or withdrawals across one or more accounts reach or exceed Rs100 million during a six-month reporting period.
The shared data will include deposits, withdrawals, opening balances, closing balances, peak credit balance and total credits. The reporting cycle will run twice each fiscal year.
Read: President Zardari signed Finance Bill 2026
Data for July 1 to December 31 must be filed by January 31. Data for January 1 to June 30 must be filed by July 31.
The law applies to current, savings, fixed deposit and term deposit accounts. During the initial cross-matching stage, income tax officials will not directly access the data.
If the automated system detects a major mismatch, the Federal Board of Revenue will route the case through the Compliance Risk Management system. The case will then be sent to the National Faceless Centre.
The law authorises the State Bank of Pakistan to create a secure central virtual database for banking transaction records.
The Federal Board of Revenue must keep the information confidential and prevent unauthorised disclosure or misuse.
