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

Chapter 14 Tax Administration and Authentic Docunments

Section 77 : Format of documents
1) The Department may, from time to time, so specify the mode of submission and formats of necessary documents, statements including income returns, tax deduction statements and formats of records that are required under this Act and the rules framed under this Act, the notices, information and details required for the effective implementation of this Act are incorporated.
2) The Department shall make available the formats referred to in sub-section (1) in the Department and in any other places specified by the Department and through any other means.
3) The department may so prescribe that information or return or documents to be submitted by any person to the Department have to be submitted through electronic means.

Income Tax Act 2058

Chapter 14 Tax Administration and Authentic Docunments

Section 78 : Permanent account number
1) The Department shall, subject to this Act, issue a permanent account number to any person for purposes of identifying that person.
Provided that the entity may provide such permanent account number upon completion of the procedure under this Act upon approval from the Department. The taxpayer receiving the permanent account number issued as such cannot operate transactions of import or export till the period as prescribed by the Department.
2) The Department may order any person to mention his/her permanent account number in any income return, statement, version, or other document to be used for purposes of this Act.
3) The Department may specify the circumstances where any person has to show or mention his/her permanent account number.
4) Notwithstanding anything contained in sub-section(1), the person referred to in sub-section (3) shall obtain a permanent account number prior to making any transaction.
1
4A) A person making transitions by obtaining a permanent account number pursuant to sub-section(4) shall update such details of registration as specified by the Department in the biometric system within the prescribed period.
1
5) Notwithstanding anything contained in sub-sections (1), (2), (3), or(4), no person shall be free from tax obligation for the reason that he has not obtained a permanent account number.
1 Inserted by the Financial Act, 2076.

Income Tax Act 2058

Chapter 14 Tax Administration and Authentic Docunments

Section 78A: Suspension of permanent account number
1
1) The Department may suspend the permanent account number in any of the following cases:-
a) If the transaction is left,
b) In the case of an entity, if it is closed, sold or transferred or such entity ceases to exist for any other reason. C) In the case of an individual ownership, if such owner dies,
c) In the case of registration of mistake.
2) The procedure for the suspension of the permanent account number shall be as prescribed.
1 Inserted by the Financial Act, 2076.
Income Tax Act 2058

Chapter 14 Tax Administration and Authentic Docunments

Section 79 : Service of documents
1) Any document required to be given or delivered to any person pursuant to this Act shall be deemed to have been given or delivered to that person in the following circumstances:-
a) Where it is sent to the fax, email or such other electronic medium of that person,
b) Where it is delivered by hand, to whom it has to be delivered or to his or her representative of staff and to the manager or the representative or staff as assigned by him or her entity, in the case of the entity, or
c) Where it is sent by a registered post to his resident, office, business or other address to the extent known.
2) Any document so signed, encrypted or encoded through computer technology or written in it as indicating the name and designation of the competent authority of the Department and issued, served or given pursuant to this Act shall be deemed to have met requirements.
3) If a document cannot be served pursuant to sub-sections (1) and (2), information thereof may be given by broadcasting or publishing a notice of the related order by radio, television or in any newspaper of national circulation, in the name of the concerned person. Information so given shall be deemed to have been received by the concerned person.

Income Tax Act 2058

Chapter 14 Tax Administration and Authentic Docunments

Section 80 : Defective documents
1) Any document issued under this Act shall not be deemed defective in the following circumstances:
a) Where it is consistent with this Act substantially, and
b) Where the person who is addressed in a document is normally indicated in the document.
2) If any documents issued by the Department pursuant to this Act contains any error and the error does not give rise to any dispute as to the interpretation of this Act or the fact of any specific person, the Department may make amendment in the document for purposes of rectifying such error.
Income Tax Act 2058

Chapter 15 Records and Information Collection

Section 81 : To maintain records or documents
1) Each person who is liable to pay tax pursuant to this Act has to maintain in Nepal the following necessary documents, in addition to the documents required to be maintained in the format or type as prescribed by the Department or to be certified or authenticated by audit or in another manner:
a) Necessary information and documents supporting the income returns or any other documents required to be submitted to the Department pursuant to this Act,
b) Documents assisting to assess the tax payable by him
c) Documents supporting the deduction of expenses.
2) Except as otherwise specified by the Department by issuing a notice in writing, the documents referred to in this Section have to be safely retained for five years from the date of expiration of the concerned income year.
3) In cases where any document referred to in sub-section (1) is not in the Nepali or English language, the Department may, by issuing a notice in writing, require the concerned person to submit the translated version of such document in the Nepali language done, at such person’s own cost, by a recognised translator under the law in force.
4) The Department may, upon prescribing the standards and procedures, give approval to any person to issue invoices through electronic means and to keep the documents required to be kept under sub-section(1) through electronic means.
Income Tax Act 2058

Chapter 15 Records and Information Collection

Section 82 : Powers of Department to obtain information
1) The officer of the Department may do the following in order to implement this Act:
a) To have full or unhindered access to any premises, places, documents or properties situated in Nepal, subject to the laws in force,
b) To obtain any portion of or duplicate copy of the document, including an electronic copy of the documents to which there is access pursuant to clause (a),
c) If the concerned officer thinks that the document to which there is access pursuant to clause (a) is an evidence that could be necessary to assess the tax liability of any person pursuant to this Act, to take such document in his custody, and
d)If any person having access to any document who is requested to provide a duplicate copy of such document does not provide it, and the officer thinks that such document is kept in any property in any form, to take such property in own custody in order to have access to such document.
2) No officer shall be entitled to exercise the powers referred to in sub-section (1) without having authority in writing from the Department. If in entering to any premises or places in exercise by any officer of the powers referred to in sub-section (1), the possessor of such premises or places or the person having access to any concerned document or property requests to show the authority of the Department, such officer has to show such authority to them.
3)If any officer of the Department who enters any premises or places in the exercise of the powers referred to in sub-section (1) so requests, the possessor of such premises or places or the person having access to any concerned document or property has to provide all proper facilities and assistance for the effective use of the powers.
4) The Department may hold in its custody the document or property taken in its custody pursuant to clause (c) or (d) of sub-section (1) until the following time:
a) In the case of any document taken in custody pursuant to clause (c) of sub-section (1) until the time the document is required to assess the tax liability of any person or for any other action pursuant to this Act, and
b) In the case of any property taken in custody pursuant to clause (d) of sub-section (1) until the time when access to the document in question is gained and it is taken in custody.
5) The person whose document is taken in custody pursuant to sub-section (4) may inspect such document and may obtain a copy of or copy down a portion of such document at his/her own cost within office hours and under supervision as prescribed by the Department.
6) Notwithstanding any provision made on privilege or public interest in respect of having access to the documents required for the implementation of this Act, the provisions contained in this Section shall apply in that respect.
Explanation:
For purposes of this Section, “possessor” means, with respect to any premise or place, a person having ownership of, manager of the premise or place or any other person remaining there.
Income Tax Act 2058

Chapter 15 Records and Information Collection

Section 83 : Power to obtain information by notice
1) The Department may, by giving a notice in writing, order any person with or without liability to pay tax pursuant to this Act to do as follows:-
a) To submit any information specified in the notice within the time specified in the notice, also by preparing any document,
b) To be present at the Department in the place and time specified in the notice before the officer of the Department for inspection on the tax-related matters of that person or any other person,
c) To submit, for purposes of inspection, any document mentioned in the notice that is under his control at the time when that person is examined pursuant to clause (b).
2) Any person who is to be examined pursuant to clause (b) of sub-section (1) shall have the right to have legal or other representation during such examination.
3) Notwithstanding any provision made on any privilege or on public interest in respect of having access to the documents required for the implementation of this Act, the provisions contained in this Section shall apply in that respect.

Income Tax Act 2058

Chapter 15 Records and Information Collection

Section 84 : Governmental secrecy
1) Any officer and other employee of the Department shall maintain secrecy of all documents and information that come to his custody or knowledge in the course of carrying out his duty pursuant to this Act.
2) Notwithstanding anything contained in sub-section (1), any officer of the Department may disclose, as follows, the document or information referred to in sub-section (1) to the following persons:-
a) To the extent that it is necessary to carry out the duty of that officer pursuant to this Act,
b) If it  is so ordered by any court or tribunal in respect of administrative review or action pursuant to this Act,
c) Before the Minister for Finance,
d) If it is necessary to disclose for purposes of any other financial law,
e) If it is necessary for any person in the service of the Government of Nepal for any acts relating to revenue or statistics, before such a person,
f) If it is necessary in the course of carrying out the duty, before the Auditor General or any person authorized by the Auditor General or
g) Before the competent authority of the government of any country with which the Government of Nepal has concluded an international agreement, to the extent as provided for in such agreement in that respect.
3) Any person, court, tribunal, body or official who obtains any document or information pursuant to sub-section (2) shall keep secret such document or information except to the minimum extent required.
Income Tax Act 2058

Chapter 16 Payment of Tax

Section 85 : Time, place and mode of payment of tax
1) Tax required to be paid under this Act has to be paid in the place and mode as prescribed and the Department may so prescribe that tax to be so paid has to be paid also through electronic means.
2) Tax required to be paid under this Act has to be paid in the following time, subject to sub-section (1):-
a) In the case of one who has to pay by withholding advance tax, in the time mentioned in sub-section (4) of Section 90,
b) In the case of one who has to pay tax in instalments, in the time mentioned in sub-section (1) of Section 94,
c) In the case of one who has to pay the assessed tax:
(1) On the date when the income return is to be submitted in respect of the assessment of tax referred to in Section 99,
(2) Within the time limit as specified in the tax assessment notice delivered pursuant to Section 102 in respect of tax assessed pursuant to sub-section (2) of Section 100,
(3) Within the time limit as specified in the tax assessment notice delivered pursuant to Section 102 in respect of amended tax assessment made pursuant to  Section 101,
d) In respect of the amounts required to be paid to the Department as per any notice issued pursuant to sub-section (8) of Section 104, sub-section (1) of Section 109, or sub-section (1) of Section 110, on the date mentioned in the notice,
e) In respect of a liability fixed upon failure of any entity to pay tax pursuant to sub-section (2) of Section 107, at the same time when the entity has to pay tax,
f) In respect of the amounts required pursuant to sub-section (3) or (4) of Section 108, within seven days of the date on which the amounts are adjusted by auction sale gradually or on which the amounts cannot be so adjusted, and
g) In respect of the fees and interest assessed pursuant to Section 122, on the date as mentioned in the assessment notice.
3) The date on which tax has to be paid shall not be affected in the following circumstances:-
a) An action taken by the Department pursuant to Chapter 20 to recover tax, or
b) Other action has commenced, pursuant to this Act.

Income Tax Act 2058

Chapter 16 Payment of Tax

Section 86 : Evidence of payable tax
The certificate signed by the officer of the Department, indicating the name and address of any person and the amount of tax required to be paid by that person shall be ample evidence for the amount of tax required to be paid by that person in the following actions:-
(a) Any action taken by the Department pursuant to Chapter 20 to recover tax or
(b) Any action on any offence pursuant to Chapter 23.
Income Tax Act 2058

Chapter 17 Withholding on Payment

Section 87 : Withholding of tax by employer
1) When making a payment which has a source in Nepal and is to be included in computing the income derived by any employee or worker, each resident employer shall deduct (withhold) tax at the rate referred to in Schedule I.
2) The liability of an employer required to withhold tax pursuant to sub-section (1) shall not decrease or end by virtue of the following:-
a) In cases where the employer has the right or duty to deduct hold up or subtract any other amount from the said payment or
b) If the income earned by the employee or worker from employment cannot be subtracted pursuant to other laws in force.
Income Tax Act 2058

Chapter 17 Withholding on Payment

Section 88A: Tax withholding in windfall gain
1) Tax shall be withheld at the rate of twenty-five percent in making a payment for a windfall gain.
Provided that the Government of Nepal may, by notification in the Nepal Gazette, provide an exemption from levying wind-fall gain tax on the national and international awards for contributions made to literature, art, culture, sports, journalism, science, technology and public administration.
2) Notwithstanding anything contained in sub-section (1), no tax shall be levied on national and international awards of up to five hundred thousand rupees for contributions made to literature, art, culture, sports, journalism, science, technology and public administration.
Income Tax Act 2058

Chapter 17 Withholding on Payment

Section 89 : Tax withholding in making payment of contraction or contract
1) In making payment of a sum exceeding fifty thousand rupees for payment of deed or contract, a resident person shall withhold tax at the rate of one and half percent of the total amount of payment.
2) The amount referred to in sub-section (1) shall also be fixed by adding any other payments, if any, made by such person or his/her associated person under the same contract to the person or his/her associated person entitled to payment under that contract in the past Ten days.
3) Notwithstanding anything contained in sub-section (1), tax shall be withheld as follows from payment made by any resident person to any non-resident person under any contract:-
a) For deed or contract, five percent,
b) For a commission in payment of a premium to a non-resident insurance company or a premium amount received for reinsurance from a non-resident insurance company, one and half percent,
c) Where the Department has given that resident person a notice in writing except as referred to in clause (a) or (b), at the rate specified in the notice.
Provided that this sub- section shall not be applicable in the payment for purchase of arms, ammunition, explosives and communication equipment purchased by Nepal Army, Nepal Police and Armed Police for their purpose.
1
3A) Tax shall be withheld at the rate of one and a half percent from payment of an amount exceeding fifty lakh rupees for a work to be performed by the consumer’s committee.
4) Notwithstanding anything contained in sub-section (1), this Section shall not apply to the following payments:-
a) Any other payment except rent paid for a land or house having source in Nepal or goods and equipment installed in the house to a natural person other than that of operating business,
b) Payments enjoying tax exemption or payments liable to tax withholding pursuant to Section 87, 88 or 88A.
Explanation:
For the purpose of this Section, “deed or contract” means a contract or agreement concluded for the supply of any goods or labours or construction, installation, or establishment of tangible property or structure and such act as specified to be a deed or contract by the Department, and such contract or agreement also includes payment for the service related to construction, installation or establishment, if such service is also covered by it.
1 Inserted by the Financial Act, 2075.
Income Tax Act 2058

Chapter 17 Withholding on Payment

Section 90 : Statement and payment of tax withheld
1) Each person who has to withhold tax has to submit to the Department a statement in such mode and format as specified by the Department within twenty-five days of the expiration of each month.
2) The person withholding tax shall pay to the Department the amount of tax withheld or deemed to be withheld pursuant to sub-section (3), along with the statement referred to in sub-section (1), within the time limit referred to in sub-section (1).
3) Even though the person liable to withhold tax has not withheld tax pursuant to Sections 87, 88, 88A or 89, the tax shall be deemed to be withheld at the time when it has to be withheld.
4) The person withholding tax shall pay the amount of tax withheld pursuant to Sections 87, 88, 88A or 89 or deemed to be withheld pursuant to sub-section (3); and if sub-section (5) is applicable, the person subject to tax withholding shall pay the tax within twenty-five days after the period referred to in sub-section (1).
4A) The person paying tax on the basis of the transaction pursuant to sub-section (4a) of Section 4 of the Act shall pay the tax withheld under Chapter 17 at the time of payment of the instalment tax.
5) The person subject to withholding tax and the person withholding  tax shall be jointly and individually responsible to pay such tax amount to the Department in the following circumstances:
a) If the person withholding tax does not withhold tax from any payment pursuant to Sections 87, 88, 88A or 89, and
b)If the person withholding tax does not pay to the Department the amount of tax deemed to be withheld pursuant to sub-section (3) within the date on which tax has to be paid pursuant to sub-section (4).
6) If the person withholding tax withholds tax and pays it to the Department pursuant to Sections 87, 88, 88A or 89 and the person subject to tax withholding makes any claim as to that payment subject to tax withholding, that amount shall be treated as if it were paid to the person subject to tax withholding.
7) If the person withholding tax pays to the Department the amount of tax not withheld pursuant to Sections 87, 88, 88A or 89, he or she may recover the amount equal to the amount of tax so paid from the person subject to tax withholding.
8) If the Department believes that any person has not submitted a return or pay tax required to be submitted or paid under sub-section (1) or (2) or there exists the circumstance referred to in sub-section (5) in the case of any person, it may issue an order to pay the amount not paid or the amount paid less and the interest referred to in Section 119 and charge referred to in Section 120 if advance tax is not deducted in the payment subject to the advance tax deduction.
Provided that, prior to issuing such an order, a written notice setting out an appropriate reason shall be given to submit evidence in defence in respect of such order within the time limit of fifteen days.
Income Tax Act 2058

Chapter 17 Withholding on Payment

Section 91 : Tax withholding certificate
1) The person withholding tax shall provide the tax withholding certificate, as follows, to the person subject to tax withholding at the time as specified in sub-section (2):
a) Having been certified in accordance with the manner, if any, as prescribed by the Department,
b) Setting out the amount of tax withheld pursuant to Sections 87, 88, 88A or 89 and the paid amounts.
2) The tax withholding certificate setting out the period of tax withholding has to be provided within twenty-five days from the date of expiration of the month in which tax is withheld.
3) Notwithstanding anything contained in sub-section (1), if  tax is withheld pursuant to Section 87, the tax withholding certificate has to be provided as follows:-
a) The certificate shall be valid only for the period when the employee continues to serve in that income year.
b) The certificate has to be provided within thirty days from the expiration of that year, or in cases where the employee leaves employment in the person withholding the tax in that year, it has to be provided within thirty days from the date of his leaving employment.