ByThe Income Tax Ordinance, 2001, under Section 114A, mandates taxpayers to declare their business bank accounts to the Commissioner of Income Tax. This requirement is crucial for maintaining accurate tax records and ensuring compliance with tax laws.
Why is Declaring Your Business Bank Account Important?
Tax Compliance: Declaring your business bank account helps the FBR monitor your financial transactions and ensures that you are paying the correct amount of taxes.
Facilitates Tax Audits: Providing accurate bank account details simplifies the tax audit process and allows the FBR to verify your income and expenses more efficiently.
Reduces Risk of Penalties: Failure to declare your business bank account can result in penalties and legal action.
Enhanced Tax Administration: Accurate and up-to-date information on bank accounts helps the FBR improve tax administration and ensure fair tax collection.
How to Add a Business Bank Account to Your FBR Profile:
Access the FBR IRIS Portal: Log in to your FBR IRIS account using your credentials.
Navigate to “Registration” Section: Locate the “Registration” section on the dashboard.
Select “Form of Registration Filed for Modification (Income Tax)” (Form 181): Choose this option to modify your existing registration information.
Add Bank Account Details: In the designated section of the form, provide the following details:
Bank Name: Enter the full name of the bank.
Account Number: Enter the complete account number.
Account Type: Specify the account type (e.g., current account, savings account).
IBAN: Enter the International Bank Account Number.
Submit the Form: Review the information carefully and submit the modified registration form.
Alternate Method:
You can also add a bank account by seeing your profile and navigating to the “Bank Accounts” section within your FBR profile. All the above mentioned details shall be entered and then verify those.
Note: If you are unable to locate your designated branch in the menu select Others to add your bank.
Declaration in Tax Return:
In addition to declaring your business bank account in the registration form, you must also declare the same account in your annual income tax return. This ensures consistency and helps the FBR verify the information provided.
Declaring your business bank account to the FBR is a crucial step in complying with tax laws. By providing accurate and up-to-date information, you can simplify the tax audit process, reduce the risk of penalties, and contribute to a more efficient tax administration system.
