The Federal Board of Revenue (FBR) has constituted a committee for suggesting measures for immediate payment of pending income tax refunds through electronic processing system.
In this connection, the FBR issued an order on Wednesday for electronic processing and electronic issuance of refunds by the Board.
According to the FBR’s order, the committee is to be headed by the Chief (Revenue Operations)/CITRO, IR-Operations Wing, FBR HQ, Islamabad and comprising of the following officers for effective enforcement of Section 170A of the Income Tax Ordinance, 2001.
Arshad Nawaz Cheena, Chief (Revenue Operations)/CITRO, IR Operations Wing, FBR HQ, Islamabad will be Chairman of the committee. Members of the committee are Tauqeer Ahmad Chief IR (BPR), IT Wing, FBR HQ, Islamabad; Irfan Khan Commissioner Inland Revenue, Zone-IY, LTO, Islamabad and Muhammad Sajid Ahmad Secretary (Income Tax Policy), IR Policy Wing. FBR HQ, Islamabad.
The committee shall suggest measures to remove inordinate delays in the issuance of pending income tax refunds and effect enforcement of Section 170A of the Income Tax Ordinance, 2001. The section 170A deals with the electronic processing and electronic issuance of Refunds by the Board. The refund amount sanctioned under this section shall be electronically transferred in the taxpayer’s notified bank account.
Moreover, the committee shall adhere to the TORs as mentioned in the Judgment issued by the Islamabad High Court vide W.P. No. 21731 2023 as follows:
The Terms of Reference (TORs) of the Refund Resolution Committee as enunciated by the Islamabad High Court shall be as follows:
(i). Review and examine refund applications that have not been disposed of by field formations within the legally mandated timeframe.
(ii). The committee will propose reforms aimed at eradicating the delay in processing pending refund applications. These reforms will be based on a comprehensive analysis and will include suggestions for improving the conduct of officials, among other recommendations.
(iii). The committee will additionally provide suggestions regarding prompt resolution of refund application under section 171 of the Income Tax Ordinance, 2001 encompassing guidelines for compensation eligibility.
(iv). The committee shall develop the necessary Change Request Form (CRF) blue-print for the development of essential software.
(v). The committee shall furnish its findings/ recommendations within a time frame of 45 days from the issuance of this notification, committee’s TORs added.
