NBR Developing Automated System to Link Tax Return Submission with Banks

The Chairman of the National Board of Revenue (NBR), Md Abdur Rahman Khan, announced that the NBR is developing a new automated system that will integrate taxpayers' annual income tax return submissions directly with bank data. The goal is to simplify the filing process, enhance efficiency, and eliminate the current hassle faced by taxpayers.

The system will link return submission directly with banks, eliminating the need for taxpayers to collect multiple bank certificates from various branches.

Once a taxpayer enters their Taxpayer Identification Number (TIN) and National Identity Number (NID), the system will automatically retrieve essential bank-related information.

This automatically retrieved information will consist of the account balance as of June 30th, the total profit (interest) earned throughout the year, the tax deducted at source (TDS) on that profit, and any bank charges imposed over the same period.

The NBR Chairman explicitly clarified that the system is designed for the taxpayer's benefit and will not grant NBR or tax officials access to the taxpayer's personal or transactional information. Only the taxpayer will be able to view the automatically generated bank data during the submission process. The system will not collect detailed transaction-level information. Requests for such detailed data will continue only under the existing legal framework for investigations backed by credible intelligence. The mechanism is expected to prevent inconsistencies in submitted figures and avoid complications such as the need to reopen files due to bank-related discrepancies.

The initiative could not be launched this year, but the NBR Chairman expressed optimism that it would be in place before next year, pending the strengthening of NBR's internal IT workforce to ensure secure connections with all banks.

The overall aim is to simplify the return-filing process, reduce the taxpayer burden, and move towards a more modern and automated tax administration.