Income Tax refunds under Prime Minister Relief Package COVID-19
Government of Pakistan
Federal Board of Revenue
No. 4(5) Rev Bud/2020/ May 28, 2020
All Chief Commissioners Inland Revenue
Large Taxpayers units,
Corporate Region/AI Tax Offices,
Regional Tax Offices
Subject: Income Tax refunds under Prime Minister Relief Package COVID-19
I am directed to refer to the subject and to say that, as repeatedly conveyed, draft refund orders u/s 170(4) of the Income Tax Ordinance 2001 In which refund has to be Issued under PM’s Covid-19 Relief Refund Package, are required to be kept ready in draft farm In IRIS. It has also been communicated that all legal and codal formalities in such cases need to be completed before hand. so that as soon as sanction Is granted by the Finance Division, refund amounts are transferred to bank accounts of the taxpayers without any delay. However, It has been noticed that there exists a difference between the information in respect of draft orders given by the field formations and the information generated by PRAL. This, prima facie, shows that some field formations have reported drafts to FBR without properly entering them in Iris. All Chief Commissioners are, therefore, requested to engage their local DBAs to generate list of drafts available In prepared mode on IRIS (not visible to the taxpayer). This list may be compared with the one sent to FBR and discrepancy (If any) may please be removed.
2. I am further directed to say that reportedly in some cases the system verifies tax deductions but the field formations have not included those cases In their lists. In such cases, the Chief Commissioners are requested to take immediate action to ensure that all taxpayers get their due refunds as per law and policy.
3. It may also be noted that refund issuance is expected to take place in ascending order i.e. smallest amount of refunds need to be processed first. In case It Is unavoidable to break such queue, reasons need to be recorded in writing.
(SULTAN M. NAWAZ NASIR)