Only individuals restricted from cash withdrawals under Section 114C

LAHORE: Only individuals have been restricted from cash withdrawals, as of now, under Section 114-C, said tax experts.

Talking to the Business Recorder, Ashfaq Tola said accounts in the names of Association of Persons may also be covered depending upon enforcement of the said provision, however, it is unclear, as definition of person differentiates individuals and AOPs u/s 80. No restriction has been imposed on companies for now.

Now, he said, the Act has amended and Section 114C reads: The threshold that was previously to be notified by the federal government is now mentioned in the Fifteenth Schedule. Similar investments to securities or units of mutual funds have also been brought within the ambit of the restrictions in Section 114C (1). Now all accounts (except for Pension and Aasan accounts), not just current accounts of ineligible persons cannot be opened or maintained. Now any person cannot withdraw equal to or more than Rs 100 million in all bank accounts held by an individual.

Another, Hussain Sherazi, said only individuals have been restricted from cash withdrawals as of now. Accounts in the names of AOPs may also be covered depending upon enforcement of the said provision. However, it is unclear, as definition of person differentiates individuals and AOPs u/s 80. No restriction has been imposed on companies for now.

Similarly, some other experts added that cars unto Rs 7 million can be purchased by persons, including non-filers, without obtaining a certificate of eligibility for such purchase. This may potentially increase the demand for used cars, and adversely affect the market for brand new cars.

In addition, under Section restriction 114(1)(b), pertaining to application for registering, recording or attesting transfer of any immoveable property, the threshold limitation has been fixed at more than Rs 100 million for commercial immoveable properties and more than Rs 50 million for residential immoveable properties. The transaction value taken shall be the fair market value as defined under Section 2(22AA) of the ITO.

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