FBR issues rules for direct transfer of income tax refund payments

ISLAMABAD: Federal Board of Revenue (FBR) on Wed introduced rules for creating payment of revenue enhancement refunds on to taxpayers’ checking account.

The FBR issued SRO 175(I)/2021 dated Gregorian calendar month ten, 2021 to apprize draft amendments to revenue enhancement Rules, 2002.

According to the draft rules, a Centralized revenue enhancement Refund workplace (CITRO) would be established for centralized payment of refunds.

After finishing all codal formalities the Commissioner IR shall pass AN order underneath Section 170(4) and transmit the order to CITRO. identical shall be mirrored in CITRO in real-time.

The CITRO shall generate AN electronic recommendation of approving quantity for ahead submission to the depository financial institution of Asian nation (SBP) through a dedicated VPN tunnel established between FBR and SBP. The SBP shall credit quantity on to the account of remunerator

The SBP shall ensure the transfer of quantity to the taxpayers account or the other way around electronically to CITRO.

The CITRO shall reconcile the payments issued as per directions throughout the month with the electronic scrolls received from the SBP and record the end result of such reconciliation within the system.

Where any payment instruction comes back by the SBP thanks to any reason, the CITRO shall transmit identical to the involved commissioner for correction in payment directions.

The FBR shall make sure that complete knowledge of refunds issued is formed on the market to the involved commissioner electronically.