ISLAMABAD: Federal Board of Revenue (FBR) on Friday issued draft rules for issuance of centralized payment of income tax refund.
The FBR issued SRO 1239(I)/2020 to issue draft amendment to Income Tax Rules, 2002.
According to the rules, the FBR shall establish a Centralized Income Tax Refund Office (CITRO) for centralized payment of refund amount to such claimants and from such date as the FBR may specify.
From such date to be notified by the FBR, the commissioner shall transmit an order under Sub-Section (4) of Section 170 of the Income Tax Ordinance, 2001 through IRIS to the treasury officer in CITRO under his digital signature, and regain a copy thereof for record.
The treasury officer in CITRO and the co-signatory designated by the FBR in this regard shall issue the cheque or a promissory note to the FBR Refund Settlement Company Limited, as the case may be, for the sanctioned amount as mentioned in the refund order or online transfer.
The CITRO shall also prepare a statement of payment advice for the concerned bank on a daily basis, for direct transfer to the taxpayer under intimation to the CITRO, the concerned commissioner as well as the taxpayer.
The in-charge of CITRO shall reconcile the refund cheques and payment advices issued during the month with the banks received from the State Bank of Pakistan (SBP) and record the outcome of such reconciliation in the system.
Where any cheque is returned back by the SBP due to any reason, the treasury officer shall cancel such cheque, if required, and attach such cancelled cheque with the respective counterfoil of the cheque-book.