SOHAIL SARFRAZ

ISLAMABAD: The Federal Board of Revenue (FBR) has fixed transaction limit of Rs 200,000 for cash-based payments made at retail outlets in markets and e-commerce Cash on Delivery (CoD) orders.

In this regard, the FBR has issued Circular No. 02 of 2025-26(Income Tax) on Friday.

According to the income tax circular issued on Friday, in order to promote the government’s overall objective of cashless economy and in line with the provisions of section 21 (s) of the Income Tax Ordinance. 2001, it is reiterated that the same principle on transaction limits for cash-based payments as for retail outlets to be followed for e-commerce COD orders as well. The limit for cash transaction for both shall be Rs. 200,000/- for this purpose, FBR added.