The Federal Board of Revenue (FBR) has introduced another strict step for non-filers, as banks have now started sharing credit card records with the tax authority.
According to the new update, if you are using a credit card and spending more than Rs2 lakh a month without filing your taxes, your name will be added to FBR’s list. The tax authority has begun closely monitoring people making large purchases through credit cards as part of its tighter financial checks. Those spending above Rs2 lakh monthly will now have to explain their expenses, as FBR increases its focus on non-filers.
Commercial banks are providing detailed data of customers to the government, while taxpayers are being told to include all credit card spending in their income tax returns. FBR has also made it clear that October 15 is the final deadline for submitting returns and no extensions will be given. To remind people, SMS alerts are being sent to defaulters across the country.
Officials said monitoring card transactions will help uncover the true income of tax evaders. After the deadline, action will be taken against people who are running businesses or making big online payments without filing returns. Notices will also go to those spending huge amounts on cards while not declaring income, as the government has decided to take zero-tolerance action against tax evasion.
In another related update, FBR warned taxpayers to file their returns on time or they will be marked as late filers and face penalties. The authority also confirmed that the “Estimated Fair Market Value” column has been removed from returns to make the process easier. At the same time, officials rejected claims about the IRIS system slowing down, saying it is working properly and ready for use.
