FBR Makes Reporting of Transactions Above Rs100 Million Mandatory Under Finance Act
ISLAMABAD:The Federal Board of Revenue (FBR) has made it mandatory for banks and Electronic Money Institutions (EMIs) to report financial transactions exceeding Rs100 million to the tax authority’s central data hub under the Finance Act 2026-27.
Under the new provisions, financial and tax information relating to account holders involved in large transactions will be shared with the FBR’s central data system.
The measure will enable the FBR to automatically cross-check major financial transactions against taxpayers’ tax and banking information.
In cases where discrepancies or inconsistencies are identified, the authorities may initiate further action under the applicable tax laws.
The requirement has been introduced under the Finance Act 2026-27 and applies to banks and EMIs, strengthening the government’s efforts to improve financial monitoring, documentation and tax compliance.
The automated comparison of financial and tax records is expected to help authorities identify undeclared transactions and potential tax irregularities more effectively.
