New insertion Chapter XVIB in the Income Tax Rules, 2002 regarding Refund Rules

Government of Pakistan
Revenue Division
Federal Board of Revenue

Islamabad, the 9th December, 2020.

NOTIFICATION
(Income Tax)

S.R.O. 1314 (I)/2020.- In exercise of the powers conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Income Tax Rules 2002, the same having been previously published vide Notification No. S.R.O. 1239(I)/2020, dated the 20th November, 2020 as required by sub-section (3) of section 237 of the said Ordinance, namely:-

In the aforesaid rules, after Chapter XVIA, the following new chapter shall be inserted, namely,-

"CHAPTER XVIB

REFUND

210IA. Application.-This Chapter shall apply to all refund orders issued under sub-section (4) of section 170 of the Ordinance.

210IB. Establishment of Centralized Income Tax Refund Office (CITRO) and posting of officers.- There shall be established a Centralized Income Tax Refund Office (CITRO) under the Federal Board of Revenue for centralized payment of refund amount to such claimants and from such date as the Board may specify.

210IC. Sanction and payment of refund.-(1) From such date to be notified by the Board, the Commissioner shall transmit an order under sub-section (4) of section 170 of the

Ordinance through Iris to the treasury officer in CITRO under his digital signature, and retain a copy thereof for record.

(2) The treasury officer in CITRO and the co-signatory designated by the Board in this regard shall issue the cheque or a promissory note to the FBR Refund Settlement Company Limited, as the case may be, for the sanctioned amount as mentioned in the refund order or online transfer.

(3) The CITRO shall also prepare a statement of payment advice for the concerned bank on a daily basis, for direct transfer to the taxpayer under intimation to the CITRO, the concerned Commissioner as well as the taxpayer.

(4) The in-charge of CITRO shall reconcile the refund cheques and payment advices issued during the month with the Bank scrolls received from the State Bank of Pakistan and record the outcome of such reconciliation in the system.

(5) Where any cheque is returned back by the State Bank of Pakistan due to any reason, the treasury officer shall cancel such cheque, if required, and attach such cancelled cheque with the respective counterfoil of the cheque-book.".

[F.No. 1(76)R&S/2020]

(Tariq Iqbal)
Secretary (Rules & SROs)