chhatramani/Nepal-Legal-Text-Corpus-44laws huggingface dataset:
Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 108 : Recovery of tax from recipient
1) Each recipient has to give a notice of the matter to the Department no later than fifteen days of the date of appointment to the post of recipient or the date of having possession of the property situated in Nepal, whichever is earlier.
2) The Department has to give a written notice to the person in arrear of tax on the amount to be paid.
3) On receipt of the notice referred to in sub-section (1), the recipient has to do as follows:
a) To set aside the amount notified by the Department under sub-section (2) after making payment of the loan, if any, which is preferential to the tax payable pursuant to sub-section (2), subject to clause (c) of sub-section (2) of Section 103, from the proceeds of the sale of the required portion of the property which have come under the possession of the recipient, and
b) To pay to the Department the amount so set aside for his tax liability on behalf of the person in arrear of tax.
4) It shall be the personal liability of the recipient to pay to the Department the amount equal to the tax liability payable by such person in arrear of tax to the extent that no amount has been set aside by the recipient pursuant to sub-section (3).
5) Provided that the recipient may recover from the person in arrear of tax the amount of tax paid.
Explanation:
For purposes of this Section,-
(a) “Recipient” means any of the following persons:
(1) A liquidator,
(2) A person appointed from outside or by a court as a recipient in respect of any property or entity,
(3) A person possessing a property by mortgage,
(4) Heir apparent, administrator or manager of the property belonging to a deceased natural person, or
(5) A person looking after the affairs of an incapacitated natural person.
(b) “Person in arrear of tax” means the person whose property has come under possession of the recipient.
Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 109 : Recovery of tax from the person liable to pay tax
1) If the person in arrear of tax does not pay tax within the due date for payment of tax, the Department may, by giving a notice in writing, order any of the following payers to pay to it the amount to the extent of the amount of tax payable on behalf of the person in arrear of tax, within the date mentioned in that notice:
a) The person who has to pay the amount to the person in arrear of tax,
b) The person who holds money for or on behalf of the person in arrear of tax,
c) The person who holds money on behalf of any third person in a manner to pay it to the person in arrear of tax or
d) The person who has got authority from the third party to pay the amount to the person in arrear of tax.
2) The Department has to give a copy of the notice given to the payer pursuant to sub-section (1) to the person in arrear of tax.
3) Notwithstanding anything contained in sub-section (1), the date mentioned in the notice referred to in that sub-section shall not be earlier than the date mentioned in clauses (a) and (b):
a) The date on which the amount has to be paid to the person in arrear of tax or the date on which such amount has been held on his behalf and
b) The date on which the notice has been given pursuant to sub-section (2).
4) The amount paid by the payer pursuant to sub-section (1) shall be deemed as paid to the person in arrear of tax. The person in arrear of tax or any other person shall not be allowed to claim such amount against the payer.

Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 110 : Recovery of tax from the agent of a non-resident person:
1) If a non-resident person in arrear of tax does not pay tax within the due date for payment of tax, the Department may, by giving a notice in writing, order any person who is in possession of any property owned by the person who is in arrear of tax to pay tax from the amount equivalent to the market value of that property, on behalf of the person in arrear of tax, in respect of the tax liability of the third person, in the sum not exceeding the amount of tax payable by such person in arrear of tax, within the date mentioned in the notice.
2) If any person pays the amount of tax as per the order referred to in sub-section (1), he may do as follows:
a) To recover the amount of such payment from the person in arrear of tax,
b) For purposes of clause (a), to take under his control any property whatsoever, including the money belonging to the person in arrear of tax, which is or would come in his possession, in such a manner that it is not in excess of the amount so paid.
3) If any person takes possession of any property pursuant to clause (b) of sub-section (2), the person in arrear of tax or any other person shall not be allowed to make any claim against such a person.
Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 110A : Recovery of arrears of tax in instalments
If, prior to the institution of the case pursuant to Section 111, any person makes a written request to pay the arrear amount in instalments, the tax officer may give approval to pay in instalments, giving a reasonable time limit.

Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 110B : Responsibility of tax payment of joint venture
The persons involved in a joint venture shall be joint venture shall be jointly or individually responsible for payment of tax obligation of the joint venture in which they are involved.

Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 110C :  Person receiving real consideration to be responsible for payment of tax
If it is proved that the person receiving real consideration of a business is different than the person registered for business, the person receiving such consideration shall be responsible for payment of tax of such business.

Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 111 : Institution of case on failure to pay tax
The Department may file a case in the concerned District Court for the recovery of tax from the person who does not pay tax on the due time limit for payment of tax.

Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 112 : Remission
1) In cases where the tax payable by any person cannot be recovered, the Government of Nepal may remit such tax in full or in part.
2) Notwithstanding anything contained in Sub-section (1), the Government of Nepal may remit, in full or in part, the fee or interest imposed pursuant to Chapter 22.
Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 113 : Tax refund and adjustment of amount
1) If any person has paid tax exceeding the tax liability payable by him/her, the Department may give direction to subtract the excess amount of tax paid by him/her from the amount of tax payable by him pursuant to this Act. The Department has to refund the excess amount to be set by such subtraction to the concerned person.
2) If the tax in question is not to be paid along with the interest paid by any person pursuant to Section 119, the Department has to refund such interest to that person.
3) If any person makes an application to the Department, as prescribed, for the refund of the amount pursuant to sub-section (1), the Department shall refund such amount within sixty days of the date on which the application was made.
4) The person who makes an application pursuant to sub-section (3) has to make such application within two years from the latest date out of the following dates. In cases where an application is not made within that time limit, the amount referred to in sub-section (1) shall not be refunded:-
a) The date of expiration of the income year existed by virtue of payment of the excess amount,
b) The date on which the excess amount is paid, or
c) The date on which the case is decided.
5) The Department has to give a notice in writing of the decision made by it on the application made pursuant to sub-section (3).
6) When refunding any amount of tax by the Department to any person by virtue of the order of a court or any other reason, the Department has to pay to such a person the interest as per the normal rate for the following period:
a) In cases where such tax refund is related to the excess tax adjustment available to any person in any income year pursuant to Sections 93, 94 or 100, the period between the due date for submission of the tax return pursuant to Section 96 and the date of tax refund, and
b) In any other cases, the period between the date of payment by such person of the refundable tax and the date of tax refund.
7) Tax deduction that can be claimed pursuant to Section 51 or 71 shall not be adjusted in any year, and such tax deduction shall not be adjusted in amounts or refunded pursuant to this sub-section.
Provided that the tax deduction adjustment may be made in accordance with the provisions contained in sub-section (2) of Section 4, sub-section (4) of Section 51 and sub-section (3) of Section 71.
Income Tax Act 2058

Chapter 21 Review and Appeal

Section 114 : Decisions subject to administrative review, and procedures there for
1) For purposes of this Act, the following decisions may be subject to administrative review:
a) Advance ruling issued by the Department pursuant to Section 76,
1
a1) Decision or order made pursuant to sub-section(8) of Section 90,
b) Estimate made by the Department on, or decision made by it to estimate, the estimated tax payable by any person, pursuant to sub-section (7) of Section 95,
c) Decision made by the Department to order any person to submit the income return pursuant to sub-section (5) of Section 96 or Section 97,
d) Decision made by the Department on any application made by any person for the extension of the time limit for submission of the income return pursuant to Section 98,
e) Assessment of tax payable by any person for any income year pursuant to Section 100 or 101 or assessment of auction expenses referred to in sub-section(5) of Section 105 or assessment of the fees and interest payable by any person pursuant to Section 122,
f) Notice given by the Department requiring to set aside the amounts as receivable by any person as a recipient, pursuant to sub-section (2) of Section 108,
g) Decision made by the Department to order any person who holds money payable to the person in arrear of tax to pay the same to the Department pursuant to sub-section (1) of Section 109,
h) Decision made by the Department to order any person to pay tax of any person due and payable on behalf of a non-resident person pursuant to sub-section (1) of Section 110,
i) Decision made by the Department on any application made by any person for the refund of tax pursuant to sub-section (5) of Section 113, and
j) Decision made by the Department on any application made by any person for the extension of the time limit for filing a complaint pursuant to sub-section (3) of Section 115.
2) In spite of any decision made by the Department on the matters mentioned in clauses (d), (i) and (j) of sub-section (1), if the Department does not give a notice of the decision to the applicant within thirty days after the making of the application pursuant to Section 98, sub-section (3) of Section 113 or sub-section (3) of Section 115, the decision may be subject to administrative review as if it were a decision to reject the application.
3) If the applicant does receive a notice of the decision within the time limit referred to in sub-section (2) and registers information thereof with the Department, the decision made by the Department to reject the application mentioned in that sub-section and notice thereof shall be deemed to have been served on that person on that date.
1 Inserted by the Financial Act, 2075.
Income Tax Act 2058

Chapter 21 Review and Appeal

Section 115 : Application for administrative review
1) A person who is not satisfied with any decision subject to administrative review, as referred to in Section 114, may make an application to the Department against the decision within thirty days of the date of receipt of a notice of that decision.
2) The application, as referred to in sub-section (1), has to clearly set out the reasons and grounds for such review.
3) If the time limit for making an application pursuant to sub-section (1) expires and any person makes an application for the extension of the time limit within seven days from the date of expiration of the time limit, the Department may do as follows:
a) To extend the time limit for a period not exceeding Thirty days from the date of expiration of the time limit for making an application pursuant to sub-section (1), where there are reasonable reasons, and
b) To give the applicant a written notice of the decision made by the Department on the application.
4) The implementation of the decision mentioned in sub-section (1) of Section 114 shall not be deemed to be affected by the making of an application pursuant to sub-section (1).
5) Notwithstanding anything contained in sub-section (4), the Department may hold in pending or otherwise affect the decision made pursuant to sub-section (1) of Section 114 pending the settlement of the application made by any person pursuant to sub-section (1).
6) A person who makes an application pursuant to sub-section (1) shall pay the total amount of undisputed tax and one-fourth of the disputed tax out of the assessed tax amount.
7) The Department may do as follows on an application made by any person pursuant to sub-section (1):
a) To accept or reject, fully or partly, the matters mentioned in the application, and
b) To give a written notice of the decision on the application.
8)If the Department fails to give the applicant a notice of decision on the application within sixty days from the date on which the application was made pursuant to sub-section (1), the applicant may make an appeal to the Revenue Tribunal pursuant to Section 116.
9) If an appeal is made pursuant to sub-section (8), such person shall give information in writing to the Department, enclosing the copy of the appeal, within fifteen days of the date on which the appeal was filed.
Income Tax Act 2058

Chapter 21 Review and Appeal

Section 116 : Appeal in the Revenue Tribunal
1) A person who is not satisfied with any decision made to the Department pursuant to Section 115 may file an appeal to the Revenue Tribunal under the Revenue Tribunal Act, 2031.
2) The person who files an appeal pursuant to sub-section (1) has to register a copy of the appeal with the Department within fifteen days of the date of filing the appeal.
3) The implementation of the decision mentioned in sub-section (1) of Section 114 shall not be deemed to be affected by the filing of an appeal pursuant to Sub-section (1).
4) Notwithstanding anything contained in sub-section (1) of Section 114, if the Director General has made a decision subject to administrative review as mentioned in that sub-section, an appeal may be filed to the Revenue Tribunal.
5) Upon filing an appeal to the Revenue Tribunal pursuant to sub-section (1), the undisputed amount of the assessed tax shall be submitted, and fifty percent of the disputed tax amount, charge and fine amount or bank guarantee of such amount shall be provided.
6) In the calculation of the deposit or bank guarantee pursuant to sub-section (5), it shall be calculated, including also the twenty-five percent of the tax amount submitted to the Inland Revenue Department for administrative review.
Income Tax Act 2058

Chapter 22 Fees and Interest

Section 117 : Fees to be charged in event of failure to maintain documents or to submit return or income return
1) If any person does not submit the following details, the following charge shall be imposed on him:
a)If the income return of any income year has not been submitted pursuant to sub-section (1) of Section 95, five thousand rupees or 0.10 percent of the assessable amount of income mentioned in the income return, whichever is higher,
b) If any person required to collect advance tax has not submitted the details pursuant to sub-section (9) of Section 95A., such person shall be imposed one and half percent annually of the amount of advance tax to be collected from the date required to make submission till the date of actual submission for each month and the portion of the month,
c) If the income return of any income year is not submitted pursuant to sub-section (1) of Section 96, for the person mentioned in sub-section (4) of Section 4, amount at the rate of one hundred rupees per month and for the other persons, at the rate of 0.1 percent per year of the assessable income drawn out without deducting any amount, if any, that can be deducted and by including any amount, if any, that has to be included in computing the income of any income year or hundred rupees per month, whichever is higher.
2) If any person does not maintain the documents required to be maintained in any income year pursuant to Section 81, a fee in a sum to be set by one and a half percent per year of the assessable income drawn out without deducting any amount, if any, that can be deducted and by including any amount, if any, that has to be included in computing the income of any income year for each month and a portion of the month or a sum set by one thousand rupees per month, whichever is higher, shall be imposed on such a person.
3) If any person withholding tax does not submit the return referred to in sub-section (1) of Section 90, a fee in a sum to be set by one and a half percent per year of the amount of tax to be withheld for each month and a portion of the month from the due date for submission of the return until the date on which such return is submitted shall be imposed on such a person.
Income Tax Act 2058

Chapter 22 Fees and Interest

Section119A: Charge to be imposed
Except as otherwise provided in this Act, there shall be imposed a charge of five thousand to twenty-five thousand rupees on a person who does not comply with any provision of this Act or the Rules framed under this Act.

Income Tax Act 2058

Chapter 22 Fees and Interest

Section 120: Charge to be imposed on the person who submits false or misleading statement
If any person submits to the Department a false or misleading statement on any matter or the information mentioned in the statement becomes misleading as a result of concealing information of any matter or thing required to be submitted or removing such information from the statement, the following charge shall be imposed on such a person:
a) If it has become false or misleading not knowingly or recklessly but by mistake, fifty percent of the amount less resulted therefrom.
b)If it has become false or misleading knowingly or recklessly, one hundred percent of the amount less resulted therefrom.
Explanation:
For purposes of this Section, “statement submitted to the Department” means any statement submitted in writing to the Department or to the officer authorized by the Department in the course of performing the duty pursuant to this Act and includes the statement submitted as follows:
(a) Application, notice, description, complaint, deposition, or other document submitted, prepared, given or furnished pursuant to this Act,
(b) Document submitted to the Department or any officer of the department except under this Act,
(c) Reply to any question asked by the Department or any officer to any person or
(d) Information given by any person who has reasonable knowledge of the matter to be informed to the Department or any officer through any other person.

Income Tax Act 2058

Chapter 22 Fees and Interest

Section 121 : Charge to be imposed on accomplice
A charge of cent percent amount of the tax less paid by an accomplice who knowingly or recklessly aids or abets or advises any offender referred to in this Act shall be imposed on such accomplice.
Income Tax Act 2058

Chapter 22 Fees and Interest

Section 122 : Assessment of fee and interest
1) The Department shall assess the fee and interest required to be paid by any person pursuant to this Chapter.
2) In computing the liability for the fee and interest chargeable where any particular act has not been performed or chargeable in respect of any statement pursuant to this Chapter, it shall be computed separately in the case of each section of this Chapter.
3) The fee and interest chargeable pursuant to this Section shall be added to any other tax, if any, payable pursuant to this Act, and mere payment of such fee and interest shall not be deemed as the release of any person from the liability related to criminal proceedings mentioned in Chapter 23.
4) If the fee and interest have been assessed pursuant to this Section, the Department shall give a written notice of the assessment, setting out the following matters, to that person. Such notice may be attached to and sent along with the notice to be issued pursuant to Section 102:
a) The reasons why the Department has to assess the fee and interest,
b) The amount for the fee and interest payable,
c) The method of how the amount has been computed,
d) The time, place and mode for making a compliant against the assessment.
5) It shall be as follows in assessing the fee and interest pursuant to this Section:
a) The matters contained in sub-section (1), sub-section (2), clause (b) of Sub-section (3), sub-section (4) and (5) of Section 101 shall also be applicable in assessing the fee and interest pursuant to this Section, and
b) The matters contained in clauses (b) and (c) of sub-section (3), sub-sections (4) and (5) of Section 101 and Section 102 shall also be applicable in the case of sub-section (4) of this Section.

Income Tax Act 2058

Chapter 23 Offence and Punishment

Section 123 : Punishment to one who does not pay tax
A person who does not pay tax, without any reasonable ground, by the due date for payment of tax shall be punished with a fine of a sum from five thousand rupees to thirty thousand rupees or with imprisonment for a term from one month to three months or with both punishments.