ISLAMABAD: The Federal Board of Revenue (FBR) is formulating a uniform policy, framing rules and enabling IT solution, for the issuance of income tax refunds in an across-the-board, fair, and transparent manner.

In this regard, the FBR has issued instructions to the chief commissioners, Large Taxpayers Units, Corporate Regional Tax Offices, and Regional Tax Offices, here on Tuesday.

According to the FBR's instructions, vide insertion of Sub-section (6) in section 170 of the Income Tax Ordinance, 2001 through Finance Act 2020, effective from July 1, 2020, a Centralized Processing System for expeditious processing and automated payments of refunds has been introduced.

The relevant provision of law reads as under: "The Board may make rules regulating procedure for expeditious processing and automatic payment of refunds through centralized processing system with effect from a date to be notified by the Board."

Accordingly, all field formations (via Chief Commissioners of Large Taxpayers Units, Corporate Regional Tax Offices, Regional Tax Offices) were directed by the FBR to finalise compilation of ledgers (both hard and soft) of all Income Tax refund claims on the format circulated vide Board's letter No.4(17) Rev Bud/2019 dated 15.6.19. In the meantime, the board is busy with formulation of a uniform policy, framing rules and enabling IT solution for the issuance of income tax refunds in an across-the-board fair and transparent manner, according to the FBR.