KARACHI: The Federal Board of Revenue (FBR) has directed all the banks to deduct Withholding Tax (WHT) on every kind of banking transactions of every account opened on a Computer National Identity Card (CNIC) in different banks.
Earlier, the FBR had directed the banks to deduct WHT on a transaction of above Rs 50,000 from one account and the account holders were using different accounts to withdraw their amounts.
In this connection, the federal government through the amended Finance Bill 2016 passed by the National Assembly on Wednesday told the FBR that withholding tax would be applicable on every account of an account holder opened on one CNIC and the banks would be responsible to deduct the WHT on every account of a person or customer.
An account holder using different banks’ accounts on a Identity Card will have to pay withholding tax on his all accounts if he (customer of the banks) makes any transactions above Rs 50,000 or any other transactions through cheques, or pay order etc.