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salaried class refunds from the Federal Board of Revenue (FBR).

FBR Refund
(Last Updated On: June 15, 2019)

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Refund Process

Under the section 149 of Income Tax Ordinance 2001, income tax in respect of an employee is required to be deducted by the persons responsible for paying salary to an employee after making adjustment of tax withheld from employees under other heads and tax credit admissible under sections 61, 62, 63 and 64 during the year after obtaining documentary evidence.

Most of the persons responsible for paying salary to employees deduct the income tax under section 149 of the Income Tax Ordinance but do not make tax adjustment of tax withheld from employees under other heads because of the fact that the employees do not submit the adjustment claims to their employers. Whereas tax under various heads is withheld from the employees by various agencies like banks, motor vehicle registration authorities, telecommunication companies, electricity distribution companies, insurance companies, educational institutions, property registration/transferring authorities, airlines, etc. which are adjustable and the employees can get this adjustment from their employers before release of salary for the month of June for the tax year 2019.

Adjustable taxes withheld by various agencies under the income tax ordinance 2001 are as under:

All employees of Federal Govt., Provincial Govt., Autonomous Bodies, Private Sector organizations, etc. can avail this golden opportunity of getting tax adjustment from their employers by submitting relevant evidences of tax deductions, meaning thereby that they will not have to wait for refund from FBR if they take this adjustment from the tax deductible from their salary during the month of June. Moreover, if any excessive amount is withheld by the employer during the year they can take that adjustment in the month of June as well. Employees should contact their employers immediately well before processing of pay roll for June-2019 so that tax adjustment is made by the employers in a timely manner. For the sake of convenience and ready reference the IT-3 Form (Declaration by Salaried Persons – To be Submitted to the Employer by the Employee) has been notified by FBR.

Adjustment sections:

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1     Withdrawal from Pension Fund                        156B

2     Cash Withdrawal from Bank                             231A

3     Certain Banking Transactions                          231AA

4     Motor Vehicle Registration Fee                       231B(1)

5     Motor Vehicle Transfer Fee                             231B(2)

6     Motor Vehicle Sale                                           231B(3)

7     Motor Vehicle Leasing                                    231B(1A)

8     Private Vehicle Tax                                          234

9     Electricity Bill of Domestic Consumer          235A

10    Telephone Bill                                                 236(1)(a)

11    Cellphone Bill                                                 236(1)(a)

12    Prepaid Telephone Card                                236(1)(b)

13    Phone Unit                                                       236(1)(c)

14    Internet Bill                                                      236(1)(d)

15    Prepaid Internet Card                                    236(1)(e)

16    Domestic Air Ticket Charges                       236B

17    Sale/Transfer of Immovable Property       236C

18    Functions/Gatherings Charges                    236D

19    Educational Institution Fee                           236I

20    Purchase/Transfer of Immovable Property              236K

21    Purchase of International Air Ticket                  236L

22    Banking transactions otherwise than through cash      236P

23    Education related expenses remitted abroad            236R

24    Advance tax on general insurance premium              236U

25    Advance tax on life insurance premium                 236U

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