KARACHI: The Federal Board of Revenue (FBR) on Wednesday proposed rules to make secure the transfers of income tax refund payment directly to the claimants.
The FBR issued SRO 175(I)/2021 and proposed the rules for incorporating in the main statute.
For the transfer of income tax refund payments, the revenue board will establish a Centralized Income Tax Refund Office (CITRO) for centralized payment of refunds.
Under the proposed rules, the entire mechanism of refund payment operation has been made electronic. The FBR said that the Commissioner Inland Revenue would pass an order after verification of refund claim and this order would be transmitted to CITRO in real-time.
“The CITRO shall generate electronic advice of approved amount for onwards submission to State Bank of Pakistan (SBP) through dedicated Virtual Private Network (VPN) tunnel established between FBR and SBP,” the FBR said, adding that the SBP would credit the amount directly to the account of taxpayer.
The SBP will also confirm the transfer of amounts to the taxpayers account. “The CITRO shall reconcile the payments issued as per instructions during the month with the electronic scrolls received from the SBP and record the outcome of such reconciliation in the system.”
Where any payment instruction is returned back by the SBP due to any reason, the CITRO shall transmit the same to the concerned commissioner for correction in payment instruction, the FBR said.
The FBR said it would be assured that complete data of refunds issued is made available to the concerned commissioner electronically.
Source: The News