The Federal Revenue Board (FBR) ordered the Chief Commissioners Inland to reimburse the income tax at Rs. 4 billion for taxpayers before January 31, 2021, of which claims were made under Section 170 of the 2001 Income Tax Ordinance.
In this context, FBR issued instructions to field formation.
FBR has instructed field formation that paying refunds or adjusting refunds will have identical financial implications for the Ministry of Finance and therefore both will ensure alignment and implementation of the same so that improper and damaged refunds are paid for or corrected by taxpayers.
In this context, the income tax application data from the field formation / PRAL for the 2020 tax year were obtained and examined. The data show that of the general claims for reimbursement of Rs. 74,313 billion in the 2020 fiscal year, 6073 claims covering the total of Rs. 4.254 billion imported.
“Our institutional position is that the obligation to reclaim funds for the current year must be paid from the current year’s revenue stream and that the refunds that are due should not be withheld,” the FBR said.
The board added: “This will also help us to reject unnecessary complaints against us due to delays in processing refund applications and / or non-payment of tax returns. In this way the data for the formation of submitted refund applications is emailed to the field formations.”
Therefore, all formations are required to discard all applications filed under Section 170 of the 2001 Income Tax Ordinance by January 31, 2021 and to read the instructions issued by FBR.