20000218

CBR extends time limit for IT refund

RECORDER REPORT

KARACHI: The Central Board of Revenue (CBR) has extended the time limit for payment of all determined income tax refund from one week to 90 days for thorough verification of refund claims before making payments.

A circular issued by the CBR to all regional commissioners of Income tax says the attention of the board has been drawn to its letter dated 12-02-2000, on the above subject wherein it was directed that all determined refunds be issued within one week of the receipt of the letter.

The circular further says it has been represented that in cases it would not be possible to issue refund within the stipulated time as credit of tax paid or deducted at source at the time of assessment was allowed without verification of payment challans from DPC/DPU or Treasury.

Rectification applications and appeal effects were also pending in large number of cases and undue haste might result in issuance of incorrect and bogus refunds. It has, therefore, been suggested that time limit of seven days be done away with, the circular added.

The matter, the circular continued, has been considered in the board and it is directed that the time limit is extended to 90 days. No further extension will be allowed. The regional commissioners income tax will report the compliance and also the quantum of refunds issued in each fortnight, it added.

It may be pointed out that earlier the CBR had also issued a directive on February 12, 2000 to all regional commissioners income tax which said the competent authority has desired that all determined refunds might be issued within one week of the receipt of this circular.

The circular issued by Revenue Refund secretary further directed that it might also be ensured that the refunds issued are genuine, correct, and are issued in accordance with law. The zonal commissioners might be directed to issue instructions to the officers that due care might be exercised while issuing refunds, so that incorrect and bogus refunds are not issued.

The circular warned that the issuing officers would be held responsible for inordinate delays and genuineness of refunds issued. The supervisory officers are required to keep a close watch to ensure compliance of the instructions.