Tax Year 2020: LTO Lahore verifies 118 refund claims of Rs100m, below

LAHORE: The Large Tax Office (LTO) Lahore has verified 118 income tax refund claims of Rs 100 million and below for Tax Year 2020, said reliable sources.

They said the Federal Board of Revenue (FBR) had sought information from all the LTOs about two weeks earlier, followed by the verification of qualified ones. They said the enforcement would start releasing refunds once the Board receives details from other LTOs as well.

Over 2000 units of LTOs throughout the country are in the process of verifying the claims, they said, further pointing out that the Board had asked the LTOs to carry out the verification of claims despite the fact that primarily the task relates to the enforcement section.

Parameters for the verification process included the nature of income losses, tax credit claims under section 65B and 65D of the Income Tax Ordinance, payment of super tax and minimum tax liabilities, deductions made under section 148 and section 153(1)(a) of the Ordinance, proration as per law and refund adjustments etc.

The sources said the genuineness of refund claims has been verified through desk audit as well as digital and those carrying any risk have been separated from the verified ones.

Meanwhile, representatives from leading firms have also approached the LTO for considering their claims under the present drive.

Copyright Business Recorder, 2021