FBR TAX REFUND

FBR TAX REFUND

Which Taxes Can Be Refunded? Have you paid or had more tax withheld during the year than your actual tax liability? If yes, you may be entitled to an Income Tax Refund. However, not every tax deducted is automatically refundable. First, it is important to determine whether the tax is adjustable or final under the applicable law.

Which Taxes Can Generally Be Adjustable?

Depending on the applicable conditions, the following payments/withholdings may be adjustable against your tax liability in the Income Tax Return:

✅ Salary Withholding Tax – Section 149 Tax deducted by your employer from your salary.

✅ Advance Tax – Section 147 Advance income tax paid by the taxpayer during the tax year.

✅ Tax on Bank Profit / Profit on Debt Withholding tax deducted by a bank or financial institution, where the law provides for adjustable treatment.

✅ Adjustable Tax on Property Transactions In certain cases, tax deducted on the purchase or sale of property under Sections 236K / 236C may be adjustable, subject to the applicable law and taxpayer status.

✅ Business-Related Withholding Tax Tax deducted from business receipts or payments may be adjustable where the relevant provisions of the Income Tax Ordinance allow adjustment.

⚠️ Important: Not every withholding or deducted tax is refundable. The nature of the tax, applicable section, taxpayer status, and the relevant provisions of the Income Tax Ordinance must be checked before claiming a refund.

💡 If your total adjustable tax exceeds your final tax liability, you may be eligible to claim an Income Tax Refund through your tax return.

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