Karachi, Pakistan: The Federal Board of Revenue (FBR) has taken a significant step to streamline the process of claiming income tax refunds. In a recent announcement, the FBR has issued detailed guidelines that outline the procedures for individuals and businesses to seek refunds for excess taxes paid.
Key Provisions of the New Guidelines:
• Electronic Filing Mandatory: One of the most notable changes is the requirement for taxpayers to file their Income Tax Returns electronically through the IRIS (Integrated Revenue Information System) portal. Manual returns will no longer be eligible for refunds. This shift towards electronic filing is aimed at improving efficiency and reducing paperwork.
• Clear Refund Indication: Taxpayers must ensure that the refund amount is accurately reflected in their Income Tax Return on IRIS. Any discrepancies or errors could delay the processing of the refund claim.
• Separate Application: To initiate the refund claim, taxpayers need to file a separate application within the IRIS system. This application will provide the FBR with the necessary information to process the claim efficiently.
• Tracking at RTO: Taxpayers can monitor the status of their refund application by visiting the relevant Regional Tax Office (RTO). The RTO will be able to provide updates on the progress of the claim and address any queries.
• Two-Year Claim Window: The FBR has introduced a two-year timeframe for claiming refunds. Taxpayers can file for a refund within two years from the date of filing their Income Tax Return or the date of tax payment, whichever is later. This provides sufficient time for individuals and businesses to identify and claim any eligible refunds.
Benefits of the New Guidelines:
• Improved Efficiency: The electronic filing requirement and streamlined procedures are expected to significantly reduce processing time for refund claims.
• Increased Transparency: The FBR’s guidelines provide clear instructions and timelines, enhancing transparency and reducing confusion for taxpayers.
• Enhanced Taxpayer Experience: By simplifying the refund process, the FBR aims to improve the overall taxpayer experience and foster trust in the tax administration system.
The FBR’s new guidelines are a positive development for taxpayers who have overpaid their income taxes. By following these procedures, individuals and businesses can expect a more efficient and transparent refund process.
