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.