Good News Taxpayers can now adjust Previous Years’ Tax Refunds against the Current Year Liability

Good News Taxpayers can now adjust Previous Years’ Tax Refunds against the Current Year Liability. The great news is here for taxpayers who have previous years’ income tax refunds and they were going to file their current year’s income tax returns. Now they need not worry about payment of their current year’s tax liability for the tax year 2022. Because the tab of adjustment of previous years’ refunds recently restored by FBR.

Taxpayers can now easily adjust their previous year’s tax refunds from the current year’s tax liability for the tax year 2022 return filing.

The Federal Board of Revenue (FBR) on Tuesday enabled this tab in the income tax return forms to ensure smooth filing of returns and improve ease of doing business and decrease the burden of tax on taxpayers.

FBR issued a press release, and said it had received a number of representations from various tax bars, businesses, and other stakeholders on the issue of the non-availability of the refund adjustment tab in the income tax return forms available in IRIS.

Such tab was first time disabled in tax return forms of 2022 but previously it was available to adjust refunds against tax liability.

“This facility will allow taxpayers to adjust their pending refund claims against admitted liability of TY 2022 at the time of filing tax returns who had filed applications to claim their outstanding refunds of previous years,” FBR says.

It added that the refund applications filed up to 27.09.2022 are eligible for adjustment of refunds. “This facility is available to all taxpayers who have not claimed excess adjustment against previous years’ refunds.”