Income Tax Refund for salaried persons

[cornatto]

I am filing e-returns via IRIS for last many years. Income Tax returns and wealth statements filed every year are accepted and I am reflected as FILER on FBR site. The issue is that refund claims prepared, saved and submitted every year well in time still show in my OUTBOX. In the year 2015 in response to my refund claim, concerned officer via IRIS asked me to submit documents in support of my refund claim, when I prepared reply in time and tried to attach required documents, system did not let me attach the same.

Many emails were sent from time to time but no response.

Can anyone help me with any course to be adopted to successful get refund of my claim. Further, how to claim tax credit on investment in mutual funds (u/s 62 of the I.T. Ordinance 2001)

[mohsan87]

Salaried person will not get refund. You can adjust the refund amount in next year income tax by asking your employer.

For mutual fund tax credit. Get the investment certificate from AMC for the taxed year.

Input the investment amount in file under section 62 in iris
System will calculate the tax credit amount.

Again to get the credit ask your employer to adjust this amount in next year income tax

[Sarkaar]

Salaried person will not get refund. You can adjust the refund amount in next year income tax by asking your employer.

As far i know and confirmed from my finance department this is not possible, tax return should be adjusted within the tax year, so best time to adjust is to settle the remaining tax in March/April where there is some outstanding tax and you have receipt for any advance/WHTyou have paid or investment in insurance or mutual fund/stock.

[mohsan87]

how it comes true. you get tax certificate after fiscal year. it must be adjusted in next year. clarify from your accounts department

[hamz80]

You can claim the refundable amount by showing the certificate to your HR / Finance department in the following year.

[cornatto]

Thanks and much appreciated.

About refund claims: There must be determination and a soft of certification by the FBR as a proof to give it to my employer (a govt department) so that they get authority to adjust the amount paid in access. Unless refund applicaiton is decided, they cant do anything. Secondly, many people claimed refund by giving bribe to FACILITATORS, they get cheques of refund that proves refund come in the shape of cheques and not in shape of adjustments.

About Investments: Just now i called my investment company, they told me I just need to give my employer a certificate of investment that was issued to me by inv. company, this is to be given during current year as investment was also made in current year and then my employer would adjust this tax credit to my yearly income tax of current year. What do you say sir.

[mohsan87]

You are right. It's the right way of adjustment

[hamz80]

For mutual fund investments, the certificate from the investment company is enough for claiming tax credit from your employer. Please note that your financial year is July - June.

Remember that you have to hold that investment for a period of two years as per section 63 of the income tax ordinance.

[mohsan87]

Remember that you have to hold that investment for a period of two years as per section 63 of the income tax ordinance.

otherwise if caught by FBR you have to pay back the tax credit amount which you availed.

[cornatto]

Is such tax credit available every year after doing investment or just in a year in which such investment was made ?

[Sarkaar]

This is because they have obligation to deduct the salary tax as per current year, when year is ended they cannot adjust.

Salaried person usually get salary slip where tax deduction is mentioned, for e.g. if you buy a new car and paid 50K advance tax, you can immediately take this slip to account dept and they will now adjust this amount in your tax.

Account dept says, once the year is closed, you can get refund from FBR and not from company. I personally think this should be possible but due to some documentation work Account dept decline to take the responsibility. Khair this year and last year both the time i got the tax adjusted within the same year.

[Sarkaar]

It is applicable for the year it is invested in and you need to keep the amount till 2 years. So you need to do new investment if you want to avail the tax credit benefit for year 2017-18.

[usman_arooq2]

Refund does come in shape of cheques, for businesses 3-4 years after filing claim.

[cornatto]

Wow bravo. After a long digging into fbr site which crocodile is only interested to tell you how much tax you own to the govt, i am able to find out answer to question : Whether tax credit u/s 62 of I.T.O 2001 is adjustable during tax year or not, answer is Yes. Following got from fbr's brochure hidden deep inside .

PAYMENT OF SALARY
Section 149
Person(s) liable to
deduct tax Person responsible for paying salary
From whom Employee
Rate On salary
excluding flying and submarine allowance – Annual
average
rate (to be calculated as per
rate card and as reduced by applicable Reduction in tax liability)
after making adjustment for:
a.
any other adjustable tax collected or deducted at source (which
is not a final tax) from employee during the tax year;
b.
tax credit admissible under section 61, 62, 63 and 64 during the
tax year;
c.
any excess deduction or deficiency arising out of any previous
deduction; or

On Salary
chargeable to tax

When :At
the time the salary is actually paid

[nifiii]

Adjustment of taxes can only be done to the current year, however if you have excess tax paid, you can always try to ask your accounts office to have it adjusted in the next year too and tell him that as a proof you'll submit the tax returns form by mentioning the excess tax amount paid in previous years in the code 92101 which states that it is the excessive unadjusted tax from previous year which adjusts it in the current year.
I am currently doing this. I bought a car, paid 75k WHT, could only adjust 18k that year. The unadjusted 57k are shown as excess tax paid. Next year I'll add this 57k in the code 92101 i.e. Unadjusted tax from previous year and will show this to my accounts guy next year.
It's a long shot and yes it takes some convincing. Currently I'm not having any tax deducted from my salary due to the ahove mentioned adjustments.

[nifiii]

PS: I also get my WHT adjusted on PTCL bills, Mobile Connections bills, Car Token Tax payments, etc. I calculate them prehand, submit the IT-3 form with those anticipated calculations, by keeping my accounts guy in the loops, and I tell him that I'll submit my Tax certificates at the end of the year, which I do.

[star2]

@nifiii and others

I pay almost 7k+ tax every month from my salary. I am not a filer. Can anybody tell me how can I start doing this filing process in easiest way possible. Sorry for being noob in this. Plus, i am also weak in maths.

Asaan asaan samjhayin how to do it and where to start?

[mohsan87]

Nothing difficult if salary is the only source of income and you have white money in your assets.

First you need to get register on FBR IRIS system
Then enroll yourself on FBR IRIS System

You will get username ( cnic no) and password..

After that you need to fill two forms
1- income tax filed voluntary for complete year
2- statement of assets and liabilities filed voluntary for complete year.

In number 1 you need to write your total salary and tax deducted for a year

In number 2 you need to declare what asset you have in term of bank account, cash, property, vehicle etc.

And expenses in year

In final reconcoiled amount should be 0

[nifiii]

@nifiii and others

I pay almost 7k+ tax every month from my salary. I am not a filer. Can anybody tell me how can I start doing this filing process in easiest way possible. Sorry for being noob in this. Plus, i am also weak in maths.

Asaan asaan samjhayin how to do it and where to start?

Inbox me your email account address and Ill send you a guide

[mohsan87]

here it is

https://e.fbr.gov.pk/SOP/IRIS/Iris_UGD_ITR_Urdu.pdf
https://e.fbr.gov.pk/SOP/IRIS/Iris_UGD_WLS_Urdu.pdf