Incomplete data by WHT agents results in refunds blockage

The Federal Board of Revenue (FBR) has found that incomplete submission of withholding data by the withholding agents resulted in blockage of refunds of taxpayers, whose tax was deducted under provisions of Income Tax Ordinance 2001. Sources toldBusiness Recorder here on Monday that one of the most important reasons for blockage of refunds is submission of incomplete data by the withholding agents.
The refund has always been paid against the confirmed payments made in the banks. However, the withholding agents do not provide complete data along with the payments challans. The information like National Tax Numbers (NTNs), computerised national identity card numbers (CNICs), relevant section of the Income Tax Ordinance under which the tax has been deducted and other data was not provided with the tax payment challans.
In other cases, the withholding agents either deducted less amount of tax or did not deposit the deducted amount into the national exchequer. This resulted in delay in issuance of refund by the tax department, as withholding agents had not submitted basic particulars of the persons against whom tax had been deducted for refund purposes.
In the absence of complete data, it is not possible for the department to pay the due amount of refund. The data has to be submitted by withholding agents to ensure that correct information about the persons against whom tax has been deducted, has been provided to the banks/tax department.
Sources said that the withholding agents deduct tax at different sources under various provisions of the Income Tax Ordinance 2001. If the withholding agents do not provide complete information, it is not possible to obtain refund due to lack of complete data. The withholding agents can play a vital role in timely issuance of refunds to the taxpayers by providing complete information about the persons against whom the tax has been deducted.
It has been observed that some of the withholding agents deposit a collective amount in the bank without disclosing the taxpayer-wise information with the tax payment challan. If the withholding agents deposit taxpayer-wise data like CNIC, NTN or relevant section, under which the tax has been deducted, the department can easily refund the amount to the concerned taxpayer. The confirmation of payment could not be done unless or until agents submit taxpayer-wise details to the banks, sources added.