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

Chapter 17 Withholding on Payment

Section 92 : Payment from which tax is withheld finally
1) The following payments shall be treated as payments from which tax is withheld finally:-
a) Dividend paid by a resident company or partnership firm,
b) Rent paid for the land or building and fixtures and equipment appurtenant thereto having source in Nepal to other natural people except one who is carrying on business,
c) Profit paid by a resident person for investment insurance,
d) Profit paid by a resident person for the interest of an unapproved retirement fund,
e) Following interest paid by a bank, financial institution or other entity issuing bonds (debentures) or company enlisted under prevailing law or cooperative organisation mentioned in sub-section (3) of Section 88:
1) Payment made to an individual not having a source in Nepal and not related to the operation of a business,
2) Payment made to the organization entitled to enjoy exemption pursuant to clause (o) of Section 2.
f) Payment subject to tax withholding made to a non-resident person pursuant to Sections 87, 88, 88A or 89,
g) All kinds of retirement payments, including those paid by the Government of Nepal or approved retirement fund or unapproved retirement fund (except regularly paid pension),
h) Meeting allowance of up to twenty thousand rupees per meeting, payment for teaching every time, making question papers or examining answer sheets,
i) Payment for a windfall gain,
j) Amount of consideration to be distributed to individuals from a mutual fund,
k) Payment for rent of a motor vehicle or carrier vehicle or carriage service of an individual except a private firm.
2)If the person withholding tax or the person subject to tax withholding pays to the Department the amount of tax withheld from the payment from which tax is withheld finally pursuant to Sections 87, 88, 88A or 89 or the amount of tax deemed to have been withheld pursuant to sub-section (3) of Section 90, the person referred to in clause (c) of Section 3 shall be deemed to have fulfilled the tax liability.

Income Tax Act 2058

Chapter 17 Withholding on Payment

Section 93 : Adjustment facility and inclusion of tax not to be withheld finally
1) If any tax is withheld from any payment for purposes of computing the amount of such payment, such tax-withheld amount shall be treated as a portion of that payment.
2) If any tax is withheld from any payment except the payment from which tax is withheld finally, the person subject to tax withholding shall be deemed to have paid the amount of tax as follows:-
a) The amount of tax withheld from payment pursuant to Sections 87, 88 or 89,
b) In cases where the person withholding tax or the person subject to tax withholding pays to the Department the amount of tax referred to in Subsection (3) of Section 90 or the amount of tax deemed to have been withheld from payment, such amount.
3) The person subject to tax withholding may make a claim for adjustment of the amount referred to in Sub-section (2) only to the amount of tax payable in the income year in which that payment is made.
Income Tax Act 2058

Chapter 18 Instalment and Advance Tax

Section 94 : Payment of tax in instalment
1)A person who has or will have assessable income in any income year from any business or investment has to pay tax in three instalments as follows:
The date
on which payment is
to be made
Amount to be paid
By the end of Poush  (Mid-January)
Amount to be paid from forty percent of the estimated tax amount
By the end of Chaitra (Mid-April)
Amount to be paid from seventy percent of the estimated tax amount
By the end of Ashad (Mid-July)
Amount due to be paid from hundred percent of the estimated tax amount
Explanation:
1) For purposes of this Sub-section,-
(a) “Estimated tax” means the estimated tax in instalments computed by any person liable to pay tax in instalments pursuant to Section 95 at the time when the instalment tax is to be paid in any year.
(b) “Tax to be paid” means the insufficient amount resulted from the subtraction of the following sum from the amount as specified under percent to deposit in instalments of the estimated amount in this sub-section:-
(1) The amount of tax deposited in that income year by a prior instalment before the date on which the instalment in question is to be paid,
(2) The amount of tax withheld from the payments to be included in computing the income of any person in any income year pursuant to Chapter 17 before the date on which the instalment in question is to be paid in that year,
(3)If the agent withholding tax or the person subject to tax withholding pays to the Department the amount of tax deemed to be withheld from the payment referred to in clause (2) pursuant to sub-section (3) of Section 90 in that year before the date on which the instalment is to be paid, such amount of tax, and
(4) The amount of tax adjustment for medical treatment expenses which that person may claim pursuant to Section 51 in respect of the accepted medical treatment expenses incurred by that person before the date on which the instalment is to be paid.
1
1A) The person paying tax on the basis of the transaction shall pay tax in two instalments as follows:
The date on which payment is to be made
Amount of tax to be paid
By the end of Poush (Mid-January)
Tax at the prescribed rate on the transaction up to 20 Poush (4 January)
By the end of Ashad (Mid-July)
The tax amount is to be set by subtracting the tax paid within the last day of Poush (Mid-January)
from the amount of tax calculated as per the prescribed rate upon estimating the transaction that would be carried on by the end of Ashad (Mid-July) on the basis of real transaction up to 20 Ashad (4 July).
2) Notwithstanding anything contained in sub-section (1), if the amount of instalments to be paid pursuant to that sub-section is less than seven thousand five hundred rupees, the amount of such instalment need not be paid.
3) The person paying the instalment shall be allowed to deduct the amount of tax paid by way of the instalment in any year pursuant to this Section for the tax chargeable in that year.
1  Inserted by the Financial Act, 2075.
Income Tax Act 2058

Chapter 19 Income Return and Assessment of Tax

Section 96 : Income return
1) Each person shall, within three months of the expiration of an income year, and subject to Sections 97, 98 and 100, submit an income return of that year in the place as specified by the Department.
2) The income return referred to in sub-section (1) shall be as follows:
a) It has to be prepared in the manner and format specified by the Department, setting out the following matters:
(1) Assessable income earned by that person from each employment, business or investment in that year and source of such income,
(2) Taxable income of that person in that year and the tax to be imposed on the person referred to in clause (a) of Section 3 in respect of that income,
(3) Income sent abroad in that income year by a non-resident person’s foreign permanent establishment situated in Nepal, and the tax imposable in that income,
1
(4) …….
1
(5) ………
(6) Such other information and details as specified by the Department.
b) The income return has to be signed by that person or manager, covenanting that it is true and complete and
c) The income return has to be accompanied by the following matters:
1
(1) .
(2) Any details made available to that person pursuant to sub-section (4),
1
(3) 
(4) Such other information and details as specified by the Department.
3) If any person, except in the capacity of an employee, prepares or assists in preparing the income return of any other person or the documents or details to be accompanied with the income return in lieu of any payment, such a person has to certify the following matters:-
a) Having examined the documents maintained by other people pursuant to Section 81 and
b) Having the circumstances in question been actually reflected in the details or information.
4) If the person required to certify the return pursuant to Subsection (3) refuses to certify, information setting out the reasons for such refusal has to be given to the person whose income return is to be certified.
5) The Department may, in the following circumstances, require any person to submit the income return of an income year or any part of the income year within the time limit mentioned in the written notice given by it to such person subject to Section 100 prior to the due time limit for submission of the income return of the income year pursuant to sub-section (1):-
a) If that person becomes bankrupt, insolvent or is dissolved,
b) If that person is to leave Nepal for an uncertain period of time,
c) If  that person is leaving the act being carried out by him/her in Nepal or
d) If the Department otherwise thinks it proper.
6) If any person wishes to amend his or her income return submitted to the Department within the time limit for its being otherwise, that person may amend the income return within thirty days of the date of its submission in accordance with the process specified by the Department.
1 Removed by the Financial Act, 2075.
Income Tax Act 2058

Chapter 19 Income Return and Assessment of Tax

Section 97 : Submission of income return not required
1) Except where the Department issues a written order, any of  the following persons shall not be required to submit the income return for any income year pursuant to Section 96:
a) Out of the persons mentioned in clause (a) of Section 3, any person who is not required to pay tax in that income year,
b) Any person mentioned in clause (c) of Section 3 in that income year,
c) Any resident natural person  to which sub-section (3) of Section 4 applies in that income year,
c1) Section 95A in such income year. A natural person having only the income referred to in sub-section (6B) (6C) (6D)
d) If the owner of a motor vehicle depositing tax pursuant to sub-section (13) of Section 1 of Schedule I is an individual except for a sole proprietorship firm, such a natural person,
e) A natural person not willing to submit an income return having income only from the disposal of non-business taxable property.
2) Notwithstanding anything contained in sub-section (1), a natural person having an income of more than forty lakh rupees in any income year shall submit the income return pursuant to Section 96.
3) The individual required to submit the return pursuant to sub-section (2) shall include in it the income gained from business exemption benefit referred to in clause (d) of Section 5, sub-section (3) of Section 7, clause (a) of sub-section (3) of Section 8, clause (a) of sub-section (3) of Section 9 and Section 11, in addition to the income required to be included.
Provided that it shall not be mandatory to include a meeting allowance and interest in income.
4) The income referred to in clause (c) of Section 3 and income from tax exemption under Section 11 of the Act shall be deducted from the income set pursuant to sub-section (3).
Provided that it need not be deducted where a meeting allowance and interest income have not been included.
5) The format of the income returns to be submitted pursuant to sub-section (2) shall be as specified by the Inland Revenue Department.

Income Tax Act 2058

Chapter 19 Income Return and Assessment of Tax

Section 98 : Extension of time-limit for submission of income return
1) In cases where any person who has to submit an income return pursuant to Section 96 makes an application in writing, within the time limit for submission of such return, to the Department for the extension of the time limit, the Department may extend the time-limit for submission of the income return if the reasons are reasonable. Information on the decision made by the Department on the application so made for the extension of the time limit has to be given in writing to the applicant.
2) The department may extend, at one time or several times, the time limit for a period not exceeding three months to submit the income return pursuant to sub-section (1).
Income Tax Act 2058

Chapter 19 Income Return and Assessment of Tax

Section 99 : Assessment of tax
1) If any person has submitted the income return of any income year, setting out the following amounts, on the date of submission of the return, the tax of the income return shall be deemed as if it were assessed:-
a) The amount of tax mentioned in the income return and payable by the person mentioned in clauses (a) and (b) of Section 3 in that income year and
b) The amount of tax mentioned in the income rerun and due and payable in that year.
2) If any person does not submit the income return of any income year, tax shall be deemed to have been assessed as follows on the due date for submission of the tax return until the tax return is submitted:-
a) The amount of tax payable by that person in that year shall be equal to the sum of the amount of tax deducted from the amount received pursuant to Chapter 17 and the amount paid in instalments for that year pursuant to Chapter 18 and
b) Tax shall not be deemed due and payable as per tax assessment.

Income Tax Act 2058

Chapter 19 Income Return and Assessment of Tax

Section 100 : Self-assessment of tax
1) Section 99 shall be applicable in cases where the income return of any income year or any part of any income year has to be submitted pursuant to sub-section (5) of Section 96.
2) Notwithstanding anything contained in sub-section (1), in the circumstances mentioned in sub-section (5) of Section 96, the Department may, based on the amount mentioned in clauses (1), (2), and (3) of sub-section(2) of Section 96, assess the tax of that person for any income year or for the part of such year in a justifiable manner.
3) The following provision shall be applicable in cases where tax is assessed pursuant to sub-section (1) or (2 ):
a) A person whose tax is assessed for the whole income year is not required to submit the income return referred to in sub-section (1) of Section 96 for that income year or
b) A person whose tax is assessed for a portion of any income year is required to submit the income return referred to in sub-section (1) of Section 96 for that income year.
4) The amount of tax paid as per the assessment of tax for a portion of any income year may be adjusted to the tax chargeable as per the assessment of tax for the whole year.
5) In assessing the tax pursuant to this Section, the Department has to give a time limit of Seven days for the submission of proof and evidence for the defence.
Income Tax Act 2058

Chapter 19 Income Return and Assessment of Tax

Section 101 : Amended tax assessment
1) The Department may have amended tax assessment in order to adjust the tax liability of a person whose tax has been assessed pursuant to Section 99 or 100 on reasonable grounds.
2) If the Department thinks it proper to re-amend the amended tax assessment made pursuant to sub-section (1), it may amend it for times, irrespective of how many, on reasonable grounds.
3) The Department shall, in assessing the tax pursuant to sub-section (1) or (2), complete the assessment within four months from the following date:
a) If tax is assessed pursuant to Section 99, the due date for the submission of income return,
b) If tax is assessed pursuant to sub-section (2) of Section 100, the date on which the tax assessment notice is given to the person whose tax is assessed,
c) If tax is assessed pursuant to sub-section (1) or (2), the date mentioned in clause (a) or (b) is related to the previous tax assessment that has been amended pursuant to sub-section (1).
4) Notwithstanding anything contained in sub-section(3), if the tax of any person has been assessed in a wrong manner due to fraud, the Department may amend such tax assessment at any time. Such amendment has to be made no late than one year of receipt of information that details have been given or tax assessed fraudulently.
5) Notwithstanding anything contained in sub-section (3), if the tax assessment is amended or the assessed tax is lessened by the Revenue Tribunal or other competent courts, the Department shall not be able to amend such tax assessment to that extent.
Provided that if an order has been issued to reexamine it, it shall not be deemed to bar the making of amendment.
6) In making amendments to tax assessment pursuant to this Section, the Department has to give that person notice in writing clearly setting out the grounds for such amendment and a time limit of fifteen days for the submission of proof and evidence for defence on such assessment of tax.

Income Tax Act 2058

Chapter 19 Income Return and Assessment of Tax

Section 102 : Tax assessment notice
The  Department shall give the person whose tax is assessed a written notice of tax assessment made pursuant to sub-section (2) of Section 100 or Section 101 setting out the following matters :
a) The assessed tax to be paid and payable by the person mentioned in clauses (a) and (b) of Section 3 for the income year or period related to an assessment of tax,
b) The method of computation of tax in the tax assessment, as mentioned in clause (a),
c)  The reason why the Department has to assess the tax,
d) The time for payment of the assessed tax due and payable, and
e) The time, place and mode for making a petition if one is not satisfied with the assessment of tax.
Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 103 : Security for tax payable by withholding
1) The tax required to be withheld by a person who has to withhold tax pursuant to Chapter 17 has to be given preference to any payment to be made by order of a court or as per any other law or in any other manner.
2) The following provisions shall apply in respect of the tax withheld by a person who has to withhold tax pursuant to Chapter 17:-
a) The tax withheld by such a person as well as the property, if any, received for such tax shall be deemed to have been withheld for the Government of Nepal,
b) The amount of tax so withheld cannot be attached to the loan or liability of such a person, and
c) If the person withholding such tax becomes bankrupt or is dissolved, the amount of tax so withheld shall not be treated as a part of the assets so become bankrupt or dissolved, and in making division upon such dissolution or bankruptcy, the Department shall have the first lien over the tax withheld or over the property.
Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 104 : Lien over property
1) Notwithstanding anything contained in the laws in force, in cases where any person does pay tax on the due date for payment of tax, the lien of the Government of Nepal shall be deemed to have been created over the property of the person who is in arrear of tax.
2) When claiming the property over which the lien is created pursuant to sub-section (1), the Department has to give that person a written notice setting out the following matters:-
a) Description of the property claimed,
b) Limit of the claim referred to in sub-section (3),
c) Tax related to the claim and
d) Other matters, if any.
3) When making a claim in the property pursuant to sub-section (2), the claim shall be created only to the extent of the tax due and payable by such a person, interest, and claim to be paid in respect of such tax pursuant to Section 119 and the expenses incurred in the auction sale.
4) The claim made pursuant to sub-section (2) shall not lie unless and until the following matter takes place:-
a) Until the Department gives information to have the claim registered pursuant to sub-section (6) in respect of the building and land,
b) Until the Department possesses such property pursuant to sub-section (3) of Section 105 in respect of other direct/tangible property and
c) Until the notice referred to in sub-section (2) is given to the person who is in arrear of tax, in any other circumstances whatsoever.
5) If the person who is in arrear of tax pays to the Department all the amounts referred to in sub-section (3) and covered by the claim made pursuant to sub-section (2), which are due and payable by such a person.
6) If the Department makes a claim over any land or building pursuant to sub-section (2), information has to be given to the concerned Land Revenue Office, and that Office has to so withhold such land or property that it cannot be sold and disposed of to or ownership to it cannot be transferred to any person.
7) If the claim over the land and building has to be released pursuant to sub-section (5), the Department has to give information thereof to the Land Revenue Office. Upon receipt of such information, the Land Revenue Office has to release the land and building so withheld.
8) The Department has to promptly give the person in arrear of tax a notice setting out the following matters in respect of the expenses to be incurred pursuant to sub-section (3):
a) The expenses incurred by the Department for the claim on the property of the person in arrear of tax and for the auction sale thereof prior to giving such notice and
b) The date on which the person in arrear of tax has to pay such expenses to the Department.
Explanation:
For purposes of this Section, “expenses incurred for claim and auction sale” means the following expenses incurred or to be incurred by the Department:
(a) The expenses incurred or to be incurred by the Department in creating or releasing the claim over the property or
(b) The expenses incurred or to be incurred by the Department pursuant to Section 105 in possessing, holding and auctioning the claimed property.
Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 106 : To prevent departing from Nepal
1)If any person does not pay the tax within the time limit due for the payment of tax, the Department may, by giving a written notice to the concerned office of the Government of Nepal, issue an order to prevent such person from leaving the country for a period not exceeding 72 hours from the date of expiration of the time of issue of the notice to such person to pay tax.
2) If any additional act has to be done during the period of time mentioned in sub-section (1), the Department has to obtain prior leave of the concerned High Court.
3) If the person referred to in sub-section (1) pays tax or the Department thinks that such person has made satisfactory arrangements on payment of tax, it may withdraw such order by giving notice to the concerned office pursuant to sub-section (1).

Income Tax Act 2058

Chapter 20 Collection, Remission and Refund of Tax

Section 107 : Officer employee of entity to be made responsible
1) If any entity does not observe anything required to be observed under this Act, each person who acts as the officer of that entity at that time shall be responsible for that.
2) If any entity does not pay tax on the date due for payment of tax, all officers who are incumbent in that entity for the time being or incumbent until before six months shall be jointly and severally liable to pay that tax.
3) Notwithstanding anything contained in sub-section (1) and (2), these sub-sections shall not be applicable in the following circumstances:
a) Where the entity has committed such offence without knowledge and consent of such person, and
b) Where that person has, in order to avoid such offence, observed or exercised care, effort and skill which a reasonable man would observe or exercise in similar circumstances.
4) If any person pays the tax required to be paid pursuant to sub-section (2), that person may do as follows:
a) To recover the amount which he has so paid from that entity,
b) For purposes of clause (a), to so hold under own control the property, including the money of that entity which is under his possession or which may come under his possession that it is not in excess of the amount so paid.
5) If any person holds any property under his control pursuant to clause (b) of sub-section (4), the entity or any other person shall not be entitled to make any claim against such person.
Explanation: For purposes of this Section, “officer of any entity” means the manager of that entity or any person who acts in that capacity.