Written by Akhter Syed in Taxation Section 114C allows restrictions on major purchases, investments and cash withdrawals, but its enforcement requires a separate government notification. ISLAMABAD: The Federal Board of Revenue (FBR) has retained the legal framework for restricting certain economic transactions by non-compliant taxpayers, but the restrictions under Section 114C of the Income Tax Ordinance, 2001 require a separate notification from the federal government before they can take effect. Section 114C was introduced through the Finance Act, 2025. The FBR’s explanatory circular confirmed that the provision created a distinction between “eligible” and “ineligible” persons based on their tax filings and declared financial resources. Under the provision, an ineligible person could face restrictions on purchasing or registering a motor vehicle above the prescribed threshold, acquiring or transferring high-value immovable property, making certain investments in securities or mutual funds, and withdrawing cash above the specified bank threshold. The law defines an eligible person as someone who has filed the previous tax year’s return and…