What is CREDIT BALANCE?

Credit balance is a situation where a banking institution is paid at the extra as compared to how much the borrower owes it. Find out more.

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. However at any one point of time the actual position can only be determined if there are no assessments pending. The amount outstanding (debit balance) is determined after all assessments(notice of assessment/ J Form) to date have been raised/issued.

A refund is only due if the payments by the taxpayer exceed the tax liability upon raising all assessments at the appropriate time. An application for refund of the credit balance can be made by a request in writing or contacting the Unit Pungutan of any Collection Branch by telephone with full details such as full name, income tax reference number, identity card number and the latest address.

Source: Lembaga Hasil Dalam Negeri (LHDN) Malaysia.

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