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030630
GOVERNMENT OF PAKISTAN
REVENUE DIVISION
CENTRAL BOARD OF REVENUE
C.No.4(24)Rev.Bud/2002-03
Islamabad,
June 30, 2003.
(Income Tax)
Subject: INCOME TAX REFUNDS UNDER THE INCOME
TAX ORDINANCE, 2001.
UNIVERSAL SELF ASSESSMENT.
The
concept of Universal Self Assessment is embodied in section 120 of the Income
Tax Ordinance, 2001. Accordingly,
all returns of income, other than the revised returns under sub-section (6)
of section 114, filed for the tax year 2003 onwards shall be returns of Universal
Self Assessment. In view of clause (b) of section 120, a return qualifying
for acceptance under Universal Self Assessment shall be deemed to be the assessment
order made and issued by the Commissioner on the date the return was furnished.
2.
REFUND APPLICATION. A taxpayer
is entitled to a refund of tax under sub-section (1) of section 170 where
the tax paid is in excess of the amount of tax that is properly chargeable. In order to claim refund of the excess tax,
the taxpayer is required, under sub-section (2) of section 170, to file a
refund application in the prescribed form and verified in the prescribed manner
(Annex).
3.
ADJUSTMENT OF REFUND. In accordance with the provisions of sub-section (3)
of section 170, the Commissioner, on being satisfied that the tax has been
overpaid, shall apply the excess:
(i)
in reduction of any other tax due from the
taxpayer under this Ordinance;
(ii)
in reduction of any outstanding liability
of the taxpayer to pay other taxes; and
(iii)
the remainder of the excess tax, if any, shall
be the amount refundable.
4. LIMITATION OF REFUND ORDER. As provided in sub-section (4) of section 170,
the Commissioner shall, within forty five days of the receipt of a refund
application, pass and serve on the taxpayer an order in writing of the decision.
5.
ISSUANCE OF REFUND. The
Commissioner shall issue the refund voucher within three months from the date
the refund order is made. Otherwise,
the taxpayer shall be eligible under section 171 for a further amount of compensation
which must be avoided under all circumstances.
6.
DUE DATE OF REFUND. According to
sub-section (2) of section 171, a refund shall be treated as having become
due:
(i)
on the date when the Commissioner receives
an order passed by the Commissioner (Appeals), the Appellate Tribunal, the
High Court or the Supreme Court;
(ii)
on the date the Commissioner makes an order
of revision under section 122A; and
(iii)
in any other case, the date on which refund
order is made by the Commissioner under sub-section (4) of section 170.
7.
PROCESSING OF REFUND APPLICATIONS. The following procedure shall be followed where
refund applications are received :
(i)
All refund applications shall be entered in
the prescribed Refund Register.
(ii)
All returns of taxpayers claiming refunds
shall be examined immediately to verify the correctness of income and tax
computation.
(iii)
Simultaneously, the process of verification
of tax paid shall be initiated as follows:
(a)
In case of a single challan of tax or an identifiable
multiple challan of tax, verification shall be made from the DPC, DPU or the
Treasury.
(b)
In case of an unidentifiable multiple challan
of tax or payment of tax through book adjustment, the prescribed certificate
of tax deduction/collection shall be relied upon after necessary verification
from the issuing office.
(c)
The tax verification process shall ordinarily
be completed within thirty days of the receipt of refund application.
(iv)
The refund rejection order shall not be passed
merely for want of tax verification where the original challan of tax or evidence
of tax deducted/collected has been furnished by the taxpayer.
In such cases, order shall be passed within the stipulated period even
if the tax verification process has not been completed. However, tax verification
process shall be completed expeditiously so that refund is issued within three
months to avoid statutory payment of compensation under section 171 for the
delayed refund.
(v)
The Commissioner shall accordingly pass the
necessary refund order and serve it on the taxpayer within forty five days
from the date of receipt of refund application.
(vi)
Refund voucher shall preferably be issued
alongwith the refund order where verification of tax has already been completed.
In case of pending verification, refund voucher shall be issued within
three months from the date the refund order is made.
(vii)
Refund orders and refund vouchers may be delivered
to the taxpayers by registered post or courier service.
(Nadir Mumtaz Warraich)
Secretary (Revenue Budget)
Ph:9202649
Encl:
(Annex)
ANNEX
PART.VI
OF THE FIRST SCHEDULE
GOVERNMENT OF PAKISTAN
DEPARTMENT OF INCOME TAX
Office
of the ______________
(See Rule
71)
Prescribed application
for refund of tax.– An application for refund of tax under section 170
shall be made in the following form, namely: –
The Commissioner
__________(Zone)
__________(City)
Dear
Sir,
I, _______________________________________________________________
of____________________________________________________________________
hereby
declare
(a)
that my total income computed in accordance
with the provisions of Income Tax Ordinance, 2001 (XLIV of 2001), during the
year ending on _____ being the income year for the assessment for the year
ending on the _______ amounted to Rs. ________.
(b)
that the total tax chargeable in respect of
such total income is Rs. _____.
(c)
that the total amount of tax paid is Rs.__________.
I, therefore, request that a refund of Rs._________
may be allowed to me.
Signature____________
NTN________________
Address_____________
I hereby declare that I am resident/non-resident* and that
what is in this application is correct.
Date
__________
Signature
_____________
______________________________________________________________________
* Delete whichever is inapplicable.
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