FBR Set to Begin Refund Processing For Tax Year 2020

Business

The Federal Board of Revenue (FBR) has directed the Chief Commissioners Inland Revenue to pay income tax refunds of over Rs. 4 billion to the taxpayers by January 31, 2021, where claims were filed under section 170 of the Income Tax Ordinance 2001.

In this regard, the FBR has issued instructions to the field formations.

The FBR directed the field formations that the payment of refund or adjustment of refund have an identical financial impact for the exchequer and therefore both warrant equal focus and application of mind so that no undue and undermined refund is either paid out or adjusted by the taxpayer.

In this connection, the data of income tax applications have been obtained from the field formations/PRAL for the tax year 2020 and examined. The data transpire that out of the total refund claims of Rs. 74.313 billion in the tax year 2020, 6073 applications covering an amount of Rs. 4.254 billion have been lodged.

“It is our institutional stance that the current year’s refund liability should be paid out of the current year’s revenue stream and that no due refunds should be withheld,” said the FBR.

The board further added that “It would also help us ward off unnecessary complaints against us for delayed processing of refund applications and/or non-payment of the refund to the taxpayers. Thus, formation-wise data of refund applications lodged has been emailed to the field formations.”

Accordingly, all formations are requested to dispose of all applications lodged under section 170 of the Income Tax Ordinance 2001 by January 31, 2021, read the instructions released by the FBR.

You May Also Like

It’s Christmas Day: Here’s when you can watch ‘Wonder Woman 1984’ on HBO Max
SECP Tightens Regulations for Debt Securities Trustees

Tech & Telecom

Business

Education