Avoid FBR Notices – Benefits of Aasan Accounts for Non-Filers

Non-filers in Pakistan often face scrutiny from the Federal Board of Revenue (FBR) when conducting banking transactions. To navigate this challenge, FBR has introduced a specific account category known as the “Easy Account.” These accounts provide a legal way for non-filers to perform banking transactions with reduced oversight, though they come with limitations and specific conditions.

Standard Accounts and FBR Reporting

Regular savings and current accounts are subject to strict FBR monitoring. Certain thresholds, when crossed, trigger automatic reporting to the FBR, often leading to notices or inquiries. These thresholds include:

• Cash Withdrawals: Annual withdrawals exceeding PKR 3.5 million.
• Cash Deposits: Annual deposits exceeding PKR 28 million.
• Bank Profit: Annual bank profit exceeding PKR 1.3 million (13 lac).

When non-filers surpass these limits, their transactions are flagged, and they may be asked to provide proof of income or source of funds.

What Are Easy Accounts?

The Easy Account is a special type of current account specifically designed for individuals, including non-filers, who require routine banking services without triggering FBR scrutiny. FBR officially permits non-filers to operate only Easy Accounts, ensuring that they remain compliant while avoiding the extensive checks applied to regular accounts.

Features of Easy Accounts

Easy Accounts provide several advantages to non-filers, but they also impose specific restrictions.

1. Transaction Limits:
   • Easy Accounts come with limits on both deposits and withdrawals. The specific limits vary depending on the bank, but they are lower than those of regular accounts.
2. Online Banking Restrictions:
   • Transfers and payments made through online banking are capped to maintain control over the account’s activity.
3. No Bank Profit:
   • Since these accounts are typically classified as current accounts, they do not accrue profit, ensuring that non-filers do not cross the profit reporting threshold.
4. Limited Cash Withdrawals:
   • Cash withdrawal amounts are restricted to prevent misuse of the account for large-scale transactions.

Tax Benefits of Easy Accounts

One significant benefit of Easy Accounts is that transactions conducted through them do not fall under FBR’s active monitoring. This allows non-filers to:

• Avoid withholding tax on certain transactions that might otherwise apply to regular accounts.
• Reduce the likelihood of receiving notices or audits related to high-value transactions.
• Stay compliant with legal requirements while managing personal or small business finances.

Additionally, Easy Accounts are ideal for individuals engaged in routine financial activities, such as receiving salaries, rent payments, or small business income, without attracting unnecessary attention from the FBR.

How to Open an Easy Account

Opening an Easy Account is straightforward and follows these steps:

1. Visit the Bank: Approach any major bank in Pakistan and request to open an Easy Account.
2. Provide Basic Documentation: This typically includes your CNIC and proof of income (if required).
3. Account Tagging: Banks automatically categorize these accounts as “Easy Accounts,” ensuring they comply with FBR’s requirements for non-filers.

Examples of Easy Accounts

Several leading banks in Pakistan offer Easy Accounts with varying features. Here are some examples:

1. UBL Asaan Digital Account:
   • Offers both Islamic and conventional banking options.
   • Includes free insurance or Takaful coverage.
   • Maximum balance limit: PKR 1 million.
2. HBL Asaan Account:
   • No minimum balance requirement.
   • Free PAYPAK debit card for the first year.
   • Monthly credit and debit limit: PKR 1 million.
3. Meezan Bank Asaan Current Account:
   • Riba-free (Shariah-compliant) banking.
   • Low opening deposit: PKR 100.
   • Free banking services like online banking and cheque book issuance.

Why Choose an Easy Account?

For non-filers, Easy Accounts strike a balance between accessing essential banking services and avoiding the heavy scrutiny applied to regular accounts. By staying within the prescribed transaction limits, non-filers can:

• Perform everyday financial activities with peace of mind.
• Avoid penalties or notices from the FBR.
• Enjoy banking services without worrying about exceeding reporting thresholds.

Easy Accounts are a practical and legal solution for non-filers in Pakistan who want to avoid FBR scrutiny while conducting routine banking transactions. While these accounts come with restrictions on transaction limits and do not accrue bank profit, their benefits far outweigh the limitations for non-filers. With various banks offering tailored Easy Account solutions, non-filers can choose the one that best meets their needs, ensuring both compliance and convenience in managing their finances.