ISLAMABAD (April 20 2004): Taking a major step to facilitate the business community, Central Board of Revenue (CBR) Chairman Muhammad Abdullah Yusuf has directed all the Regional Commissioners of Income Tax (RCITs) to forthwith issue income tax refunds to the taxpayers irrespective of the quantum of refund amount.
He was addressing the RCITs conference held here on Monday. CBR Member Tax Policy and Reforms M S Lal, Member Direct Taxes Vakeel Ahmed Khan and other senior CBR officials were also present in the meeting.
CBR chairman has asked the RCITs that the income tax officials should not withheld refund amount on the basis of technical objections, as genuine income tax refund of any amount should be issued on top priority basis.
Sources quoted CBR chairman as saying that the income tax officials should not cause any inconvenience to the taxpayers regarding refund issue.
The verification process of refund should not be done in a strict manner, which cause problems for the taxpayers.
Yusuf has given a deadline of one month to clear and backlog of refund and directed the commissioners to submit comprehensive report within one month.
Sources said that the CBR chairman has also directed RCITs that if the requisite file pertaining to refund is incomplete, it is the responsibility of the income tax officer to complete the necessary documents instead of pressing the taxpayers.
Reviewing updated performance pertaining to audit parameters under Universal Self-Assessment Scheme (USAS), it has been decided in the RCIT conference that no notices will be issued to small taxpayers. The income tax returns filed by the small taxpayers would be accepted as it is.
The CBR has also directed RCITs that notices should not be served on the small taxpayers on the basis of incomplete documents.
“The CBR has directed RCITs not to demand missing documents under the universal self assessment scheme and should not issue notices to them”.
The CBR will select 20 percent of the corporate sectors for audit of the tax year 2003 ie 25,000 business cases may be selected, sources added.