Ineligible Persons Set to Get Major Relief With Rs. 100 Million Cash Withdrawal Limit

A new provision has been proposed in the amended Finance Bill 2025, allowing individuals classified as ineligible to withdraw up to Rs. 100 million in cash annually from the banking system. Originally, the Finance Bill 2025 aimed to impose strict financial transaction limits on individuals deemed ineligible, who either do not file income tax returns or lack adequate declared resources. However, following a review by the National Assembly’s Standing Committee on Finance, the bill has undergone major revisions. The revised provision, though still pending final approval by the National Assembly, has triggered significant public and expert debate. A key feature of the bill is the introduction of Section 114C to the Income Tax Ordinance, 2001, which formally defines eligible and ineligible persons. An eligible person is someone who has filed a tax return for the previous year and disclosed sufficient assets in their wealth or financial statements. Those who fail to meet these criteria are considered ineligible and, under the bill’s original version, were to be barred from major financial activities such as large cash withdrawals, property purchases, and investments in securities. The proposed amendment, however, introduces an exception: ineligible persons would now be permitted to withdraw up to Rs. 100 million in cash annually across all their bank accounts. This represents a significant shift from the government’s earlier firm stance on enhancing financial transparency and curbing tax evasion. The revised proposal states that the Rs. 100 million limit will apply cumulatively to all bank accounts held by an individual. If approved, this provision would allow previously restricted cash withdrawals by ineligible individuals, up to Rs. 100 million per year.