chhatramani/Nepal-Legal-Text-Corpus-44laws huggingface dataset:
Securities Act 2063

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.

Securities Act 2063

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.
Securities Act 2063

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.
Securities Act 2063

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.
Securities Act 2063

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.
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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.
Securities Act 2063

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.
Securities Act 2063

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.
Securities Act 2063

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.

Securities Act 2063

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.
Securities Act 2063

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.
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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.
Securities Act 2063

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,
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(4) …….
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(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:
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(1) .
(2) Any details made available to that person pursuant to sub-section (4),
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(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.
Securities Act 2063

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.

Securities Act 2063

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).