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

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.

Securities Act 2063

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.
Securities Act 2063

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.

Securities Act 2063

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.
Securities Act 2063

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.
Securities Act 2063

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.
Securities Act 2063

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).

Securities Act 2063

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.
Securities Act 2063

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.
Securities Act 2063

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.

Securities Act 2063

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.
Securities Act 2063

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.

Securities Act 2063

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.

Securities Act 2063

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.

Securities Act 2063

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.

Securities Act 2063

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.
Securities Act 2063

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.
Securities Act 2063

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.