Credit in the account will be refunded automatically to the taxpayer. However, if you do not receive your refund you can forward your application to the Collections Unit of the branch where your file is located or an e-mail to the Customer Service Centre, at email@example.com or by calling 1-300-88-3010.
What Is A Credit Balance?
A credit balance exists when payments such as scheduler tax deduction, monthly installment payments or income tax payment exceed the tax liability (debit balance) of a taxpayer at any one time. A debit exists when the tax liability exceeds the tax payments.
How to prevent excess credit in the taxpayers account
Taxpayer should monitor the monthly deductions from salary or by-montly instalment payments on business income, and compare it with the actual tax liability according to the notice of assessment.
An application to the IRBMs Branch to stop further deductions from salaries must be made immediately upon confirmation of the tax liability to avoid excessive deduction from salary.
A taxpayer must ensure that the employer is notified of the following changes in personel details:
- Number of Children,
- Death of spouse,
- Death of child.
Furthermore, the taxpayer can furnish and submit to the employer Form PCB/TP1 (Form to claim individual deduction and rebate) if there are other deductions that can be claimed.
These information are important in determining the right amount of monthly salary deduction in accordance with the Schedular Tax Deduction tables.
IRBM should be notified by taxpayer on the amount of zakat paid in a year.
Circumstances Of Tax Repayment
Repayment of tax occurs when:-
- Taxpayer has made payment in excess of actual tax.
- Taxpayer has credit in account resulting from a reduced assessment.
- Tax deducted from dividend is in excess of tax liability for the relevant year.
Application To Use Tax Credit To Pay Your Current Years Tax
If your account shows a credit from a previous year of assessment, you can make an application to use the credit to pay your current year’s tax. An application to set-off can be made by forwarding a letter to the collection unit of the branch where your physical file is located before 30th April.