ISLAMABAD, March 17: The Central Board of Revenue (CBR) on Saturday launched an automated tax deposit system, in collaboration with the State Bank of Pakistan (SBP) and the National Bank of Pakistan (NBP), to facilitate tax payments.
Under the new system, the CBR has also made filing of national tax number (NTN) compulsory for tax deposits from April 1.
The old form of tax deposit on challans, an essential document allowing tax credit and issuance of refunds, has been replaced with a comprehensive Computerized Payment Receipt (CPR), to be issued by the banks.
According to the new system, to allow tax credit to taxpayers expeditiously in respect of taxes withheld under various withholding provisions of the Income Tax Ordinance, 2001 as well as tax paid directly by the taxpayers, verification of payments and timely issuance of refunds wherever due the said automation project is now being implemented countrywide at full scale.
The taxpayers are required to furnish complete details, particularly the name, CNIC or valid NTN of the payee, type of payment and amount against which tax is being withheld etc. In case of individuals, CNIC can be furnished in the absence of NTN.
The withholding agents with small number of "payees" on their option can prepare paper-based challans with maximum of 10-taxpayers in one challan for deposit of tax through a single cheques/DD/PO/cash etc.
For large withholding agents, a computer-based data format has been designed for providing the details to the bank in electronic format, whereby any number of taxpayers can be included against a single payment challan pertaining to one type of tax payment.
No single or multiple withholding tax challan(s) will be accepted with incomplete particulars of the taxpayers and their "payees"/employees/agents/vendors/suppliers etc., particularly valid NTNs in the cases of companies/AOPs and NTN or CNIC in the cases of individuals.
The taxpayers and the withholding agents are being contacted by the regional tax offices (RTOs) directly also so as to assist them in fulfilling their tax deposit related obligations.
The scheme will enable them to understand the spirit of the automated revenue collection system, focal point of which is the facilitation of taxpayers minimising the chances of filing incorrect/deficient statements/claims for tax credits and timely payment of refunds, wherever due to a taxpayer.
The RTOs have been advised to facilitate the tax paying community for quick response to any question or assistance.