Withholding Tax Refund on Interest Income (Senior Citizens)
Senior citizens can claim a withholding tax (WHT) refund on their interest income by submitting these documents:
- Registration Form – "REGISTRATION FORM FOR SENIOR CITIZEN REFUNDS" (Form No.RFN/WHT/01-E)
- Application Form – "APPLICATION FOR REFUND CLAIM - SENIOR CITIZEN" (Form No.RFN/WHT/02-E)
- ID Copy – National Identity Card (NIC) or Passport
- Bank Confirmation Letter – Confirmation of interest income and WHT deductions
- WHT Certificates – Issued by banks or financial institutions
- TIN Certificate – Taxpayer Identification Number (TIN) registration document
Ensure all documents are prepared and submitted to the tax authority for smooth processing. Refunds are processed quarterly:
- 1st Quarter (April 1 - June 30): On or after July 30
- 2nd Quarter (July 1 - September 30): On or after October 30
- 3rd Quarter (October 1 - December 31): On or after January 30
- 4th Quarter (January 1 - March 31): On or after April 30
Quarterly refund claims should not exceed Rs. 25,000, with an annual limit of Rs. 60,000.
From Y/A 2024/25
From the year of assessment 2025/26, resident individuals can claim a tax refund up to Rs. 1,800,000, processed within three months of claim submission.
Senior citizens are entitled to quarterly refunds up to Rs. 45,000 before a tax audit.
Effective from 2024/25, refund claims must be submitted within 30 months of the relevant tax year.