chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Offices with specified jurisdictions shall function as integral parts of the Department.

(3) The Department may have the following officers and other employees:-

(a) Director General,

(b) such number of Deputy Director Generals, Chief Tax Administrators, Directors, Chief Tax Officers, Tax Officers, and other officers as required, and

(c) other employees.

(4) Subject to the directions given by the Government of Nepal, the Director General may do the following:-

(a) exercise any power conferred on the Department under this Act,

(b) subject to sub-sections (5) and (6), delegate the power under clause (a) to another officer for exercise,

(c) specify that all or some of the powers under clause (a), other than issuing a public circular under section 75, specifying a document under section 77, suspending or otherwise affecting any reviewable decision under sub-section (5) of section 115, accepting or rejecting in whole or in part the matters contained in an application made by a person under sub-section (7) of section 115, compounding an offence under section 129, or authorizing an officer under section 82, may be exercised by any officer of the civil service.

(5) Subject to the directions given by the Government of Nepal or the Director General, a Deputy Director General, Chief Tax Administrator, Director, Chief Tax Officer, or Tax Officer serving as Office Chief may do the following:-

(a) exercise any of the powers conferred on the Department under this Act, other than issuing a public circular under section 75, specifying a document under section 77, suspending or otherwise affecting any reviewable decision under sub-section (5) of section 115, accepting or rejecting in whole or in part the matters contained in an application made by a person under sub-section (7) of section 115, or compounding an offence under section 129, and

(b) subject to sub-section (6), delegate such power to another officer of the Department for exercise.

(6) An officer of the Department other than the Director General, Deputy Director General, Chief Tax Administrator, Director, Chief Tax Officer, or Tax Officer serving as Office Chief may do the following:-

(a) exercise any power delegated to such officer among the powers of the Department, other than the following powers:-

(1) issuing a public circular under section 75, specifying a document under section 77, suspending or otherwise affecting any reviewable decision under sub-section (5) of section 115, accepting or rejecting in whole or in part the matters contained in an application made by a person under sub-section (7) of section 115, or compounding an offence under section 129, or

(2) authorizing an officer under section 82 or issuing a notice under section 109, and

(b) shall not sub-delegate any power delegated to him or her. 73.
73. International agreements: (1) The Government of Nepal may enter into an international agreement with a foreign government to avoid double taxation where tax is leviable on a person's income under this Act or prevailing law and the same income is also taxable in a foreign country.

(2) Where a competent authority of another country, pursuant to an international agreement concluded with Nepal, requests the Department to collect in Nepal an amount payable by a person who has any arrears under the tax law of that other country, this sub-section shall apply.

(3) In a case where sub-section (2) applies, the Department may, by notice in writing to such person having tax arrears, for the purpose of sending that amount to the competent authority, require that person to deposit such amount in the Department within the date specified in such notice.

(4) This sub-section shall apply where an international agreement provides that Nepal shall grant an exemption or a reduced rate of tax on income or payment.

(5) In a case where sub-section (4) applies, the following entity shall not be eligible for tax

Added by the Finance Act, 2076.81A. Amounts pertaining to business transactions not to be deposited in personal accounts: No person shall deposit cash, cheque, QR code, or any amount received through any other electronic means, received in respect of a business transaction, into a personal bank account. 82. Department may obtain information: (1) For the purpose of implementing this Act, an officer of the Department may do the following:-

(a) obtain full or unrestricted access to any premises, place, document or other property located in Nepal, subject to the prevailing law,

(b) obtain any part or copy of a document, including an electronic copy of a document to which access has been obtained pursuant to clause (a),

(c) take possession of any document to which access has been obtained pursuant to clause (a) if the relevant officer believes that such document is evidence of a type necessary to determine a person's tax liability under this Act, and

(d) take possession of any property in any form, if the officer believes that such document is kept in any property, where a person having access to a document has been requested to provide a copy of such document and has not provided it, and take possession of such property pursuant to clause (a).

(2) No officer shall exercise any power under sub-section (1) without obtaining written authorization from the Department.
When an officer enters any premises or place exercising the power under sub-section (1), if the person in possession of that premises or place, or the person having access to any relevant document or property, requests to see the Department's authorization, such officer shall show such authorization to them.

(3) Any officer of the Department entering any premises or place exercising the power under sub-section (1) may request, and the person in possession of such premises or place, or the person having access to the relevant document or property, shall provide all reasonable facilities and assistance for the effective exercise of that power.

(4) The Department may retain in its possession documents or property taken into possession under clause (c) or (d) of sub-section (1) for the following periods:-

(a) in the case of any document taken into possession under clause (c) of sub-section (1), for as long as is necessary for determining a person's tax liability or for any other proceedings under this Act, and

(b) in the case of property taken into possession under clause (d) of sub-section (1), until access to the disputed document is obtained and possession is taken.

(5) A person whose document is taken into possession under sub-section (4) may inspect such document and may, under the supervision as determined by the Department and at the person's own expense, during office hours, take a copy or extract of such document.

(6) Notwithstanding any provision relating to privilege or public interest regarding obtaining access to documents necessary for the implementation of this Act, the provisions set out in this section shall apply. Explanation: For the purposes of this section, "person in possession" means, in relation to any premises or place, the owner, manager, or any other person present there. 83.
Explanation: For the purposes of this section, "person in possession" means, in relation to any premises or place, the owner, manager, or any other person present there. 83. May obtain information by issuing notice: (1) The Department may, by issuing a written notice, order any person, whether or not liable to pay tax under this Act, to do the following:-

(a) to submit, within the time specified in the notice, any information specified in such notice by preparing a document,

(b) to appear before an officer of the Department for examination regarding tax matters of that person or another person, at the time and place specified in the notice,

(c) to submit any document referred to in the notice that is under the control of that person, at the time of examination of that person under clause (b), for examination.

(2) Any person being examined under clause (b) of sub-section (1) shall have the right to have legal or other representation throughout such examination.

(3) Notwithstanding any provision relating to privilege or public interest regarding obtaining access to documents necessary for the implementation of this Act, the provisions set out in this section shall apply. 84. Official secrecy: (1) Every officer and other employee of the Department shall keep confidential all documents and information that come into their possession or knowledge in the course of performing their duties under this Act.

(2) Notwithstanding anything contained in sub-section (1), an officer of the Department may disclose a document or information as per sub-section (1) to the following persons in the following manner:-

(a) to the extent necessary for performing that officer's duties under this Act,

(b) upon an order from any court or tribunal regarding administrative review or proceedings under this Act,

(c) to the Minister of Finance,

(d) where disclosure is necessary for the purposes of any other financial law,

(e) to any person in the service of the Government of Nepal, if necessary for revenue or statistical work,

(f) to the Auditor General or any person authorized by the Auditor General, where necessary for presentation in the course of performing official duties, or

(g) to an authorized officer of the government of any country with which Nepal has entered into an international agreement, to the extent provided in that agreement.

(3) Any person, court, tribunal, body, or officer receiving documents and information under sub-section (2) shall keep such documents or information confidential, except to the minimum extent necessary. Chapter 16

Payment of Tax

85.
Chapter 16

Payment of Tax

85. Time, place and manner of tax payment: (1) Tax payable under this Act shall be paid at the prescribed place and in the prescribed manner Amended by the Finance Act, 2076. and the Department may prescribe that such tax payable shall also be paid through electronic means.

(2) Subject to sub-section (1), tax payable under this Act shall be paid at the following times:-

(a) in the case of tax to be deducted and deposited as advance tax, at the time mentioned in sub-section (4) of section 90,

(b) in the case of tax payable in installments, at the time mentioned in sub-section (1) of section 94,

(c) in the case of tax payable as per assessment,-

(1) in relation to tax assessment under section 99, on the date on which the income return is required to be submitted,

(2) in relation to tax assessment made under sub-section (2) of section 100, within the time limit specified in the notice of assessment served under section 102,

(3) in relation to amended tax assessment under section 101, within the time limit specified in the notice of assessment served under section 102.

(d) in relation to amounts payable to the Department pursuant to a notice issued under sub-section (8) of section 104, sub-section (1) of section 109, or sub-section (1) of section 110, on the date specified in such notice,

(e) in relation to a liability incurred by a body under sub-section (2) of section 107 for not paying tax, at the same time as the tax would have been payable by that body,

(f) in relation to amounts demanded under sub-section (3) or (4) of section 108, within seven days from the date of settlement through auction sale or the date on which settlement was not possible, respectively, and

(g) in relation to fees and interest determined under section 122, on the date specified in the notice of determination.

(3) The due date for tax payment shall not be affected in the following circumstances:-

(a) action taken by the Department under Chapter 20 to recover tax, or

(b) initiation of other proceedings under this Act. 86. Proof of tax payable: A certificate signed by an officer of the Department, stating the name, address, and amount of tax payable by a person, shall be sufficient proof for the following actions regarding the tax payable by that person:-

(a) action taken by the Department under Chapter 20 to recover tax, or

(b) proceedings relating to any offense under Chapter 23. Chapter 17

Withholding of Tax at Source

87.
Chapter 17

Withholding of Tax at Source

87. Withholding of tax by employer: (1) Every resident employer shall, when making any payment of any amount sourced in Nepal that is included in computing the income derived by any employee or worker from employment, deduct tax at the rate as per Schedule-1.

(2) The liability of an employer to deduct tax under sub-section (1) shall not be reduced or extinguished due to the following reasons:-

(a) the employer having the right or duty to deduct, withhold, or reduce any other amount from the said payment, or

(b) the income from the employment of the employee or worker not being reducible under other prevailing law. 88. Withholding of tax when making payment of investment return and service fee: (1) A resident person, when making payment of interest sourced in Nepal, natural resource, rent, royalty, Amended by the Finance Act, 2078 service fee, commission, sales bonus, retirement payment and any other return, and retirement payment amount, shall deduct tax at the rate of fifteen percent of the total payment amount. Added by the Finance Act, 2078Provided that, in the following payments, tax shall be deducted at the following rates:-

(1) in the case of retirement payment from the Government of Nepal or contribution-based retirement payment from an approved retirement fund, at the rate of five percent on the benefit calculated under clause (b) of sub-section (1) of section 65,

(2) in the case of commission paid by a resident employing company to a non-resident person, at the rate of five percent,

(3) when making payment for the lease of an aircraft, at the rate of ten percent,

(4) in the case of service fee paid to a resident person providing services registered for value added tax or to a resident body making exempt transactions under value added tax, at the rate of one point five percent of the payment amount,

(5) in the case where a resident person makes payment of rent sourced in Nepal, at the rate of ten percent,

Provided,

(a) tax shall be deducted at the rate of one point five percent on the amount paid as rent of such vehicle to a person registered for value added tax and engaged in the business of renting out vehicles.

(b) tax shall not be deducted on the amount received by a natural person as house rent. Repealed by the Finance Act, 2078(c)

(6) in the case of payment of return amount distributed to a natural person from a mutual fund, at the rate of five percent.
Repealed by the Finance Act, 2078(c)

(6) in the case of payment of return amount distributed to a natural person from a mutual fund, at the rate of five percent. Added by the Finance Act, 2078(7) in the case of payment made by a resident person for the use of satellite, bandwidth, optical fiber, telecommunication equipment, or electricity transmission line, at the rate of ten percent. Added by the Finance Act, 2078(8) in the case of payment amount for transportation service and for renting out transportation vehicles, at the rate of two point five percent. Added by the Finance Act, 2079Provided that, tax shall be deducted at the rate of one point five percent on the amount paid to a person registered for value added tax and engaged in the business of providing transportation service or renting out transportation vehicles. Repealed by the Finance Act, 2079

Added by the Finance Act, 2078(9) when a resident bank or financial institution makes interest payment on loans taken in foreign currency from a foreign bank or other financial institution for investment in sectors prescribed by Nepal Rastra Bank Amended by the Finance Act, 2079 at the rate of Amended by the Finance Act, 2079 five percent. Added by the Finance Act, 2078(9A) when a hydropower project with a reservoir or semi-reservoir of more than two hundred megawatts, which completes financial closure by the month of Chaitra of the year 2082, makes interest payment on loans taken in foreign currency from a foreign bank or other foreign financial institution, at the rate of five percent. Added by the Finance Act, 2078(10) tax shall not be deducted on the incentive amount provided to a consumer for making payment through electronic payment instruments such as payment cards, e-money (wallet), mobile banking, etc., as per prevailing law, for the purchase of goods and services. Added by the Finance Act, 2078(11) when making payment of registration fee, tuition fee, and examination fee to a foreign school or university, at the rate of five percent of the payment amount. Added by the Finance Act, 2078(12) when a resident bank or financial institution pays interest on deposits to a life insurance company, at the rate of five percent.
Added by the Finance Act, 2078(12) when a resident bank or financial institution pays interest on deposits to a life insurance company, at the rate of five percent. Added by the Finance Act, 2078(13) when making royalty payment to a resident person for a literary article or composition, at the rate of one point five percent of the payment amount.

(2) A resident person, when making the following payments sourced in Nepal, shall deduct tax at the following rates:-

(a) in the case of dividend payment, five percent of the payment amount,

(b) when making payment of investment insurance benefit, five percent of the payment amount, or

(c) when making benefit payment from an unapproved retirement fund, five percent of the benefit amount.

(3) Notwithstanding anything contained in sub-section (1), a resident bank, financial institution, cooperative, or any other body issuing bonds, or a company listed under prevailing law, when making payment of interest or any amount in the nature of interest to any natural person on deposits, bonds, debentures, and government bonds as follows, shall deduct tax at the rate of Amended by the Finance Act, 2078 six percent of the total payment amount:-

(a) sourced in Nepal, and

(b) not related to business operations.

(4) Notwithstanding anything contained in sub-sections (1), (2), and (3), this section shall not apply to the following payments:-

(a) any payment made by a natural person other than for business operations, except Amended by the Finance Act, 2078 ,

(1A) payment for articles and compositions published in newspapers,

(b) interest paid to a resident bank or other resident financial institution,

(1) interest paid by cooperative banks and cooperative associations/institutions to each other on loan investments,

(2) Repealed by the Finance Act, 2078

(c) payment that is tax-exempt or payment from which tax is required to be deducted under section 87,

Amended by the Finance Act, 2076.285(d) interchange fee paid to a credit card issuing bank,

Repealed by the Finance Act, 2076.286(e)

Added by the Finance Act, 2076.88A. Withholding of tax on windfall gains: (1) Tax shall be deducted at the rate of twenty-five percent on payment made as windfall gains. Provided that, the Government of Nepal may, by publishing a notice in the Nepal Gazette, grant exemption from windfall gains tax on national and international level prizes received for contributions in the fields of literature, arts, culture, sports, journalism, science, technology, and public administration.

(2) Notwithstanding anything contained in sub-section (1), windfall gains tax shall not be levied on prizes up to five hundred thousand rupees received for contributions in the fields of literature, arts, culture, sports, journalism, science, technology, and public administration.
Added by the Finance Act, 2076.Provided that, if the prize amount exceeds five hundred thousand rupees, windfall gains tax shall be levied on the excess amount. 89. Withholding of tax when making payment under a contract or agreement: Amended by the Finance Act, 2076.(1) A resident person, when making payment of an amount exceeding fifty thousand rupees under a contract or agreement, shall deduct tax at the rate of one point five percent of the total payment amount.

(2) To determine the amount mentioned in sub-section (1), if any other payments have been made within the preceding ten days under the same contract to the same person or a related person, or to the person receiving payment under the same contract or a related person, such payments shall be added together for determination. Amended by the Finance Act, 2076.(3) Notwithstanding anything contained in sub-section (1), a resident person making payment to a non-resident person under any contract or agreement shall deduct tax as follows:-

(a) Amended by the Finance Act, 2076 on a contract or agreement, five percent,

(b) Amended by the Finance Act, 2076. when paying premium to a non-resident insurance company or commission paid from premium received as reinsurance from a non-resident insurance company, one point five percent,

(c) Amended by the Finance Act, 2076. other than as mentioned in clause (a) or (b), if the Department has given written notice to such resident person, at the rate specified in such notice. Repealed by the Finance Act, 2076

Added by the Finance Act, 2076.(3A) Tax shall be deducted at the rate of one point five percent on payment amount exceeding fifty lakh rupees made for carrying out work through a consumer committee.

(4) Notwithstanding anything contained in sub-section (1), this section shall not apply to the following payments:-

(a) any payment made to a natural person not engaged in business operations, other than rent paid for land or house sourced in Nepal and fixtures and equipment installed in the house,

(b) payment that is tax-exempt or payment from which tax is required to be deducted under section 87, 88, or 88A. Amended by the Finance Act, 2076.Explanation: For the purposes of this section, "contract or agreement" means a contract or agreement made for the supply of any goods or labor, or for the construction, installation, or erection of tangible property or structures, and also includes work designated by the Department as a contract or agreement; and if such contract or agreement also covers services related to construction, installation, or erection, it also means the payment for such services. Repealed by the Finance Act, 2076
Repealed by the Finance Act, 2076

90.
Repealed by the Finance Act, 2076
Repealed by the Finance Act, 2076

90. Details and payment of deducted tax: Amended by the Finance Act, 2076.(1) Every person required to deduct advance tax shall, within twenty-five days of the end of each month, submit details to the Department in the manner and format prescribed by the Department.

(2) Along with the details mentioned in sub-section (1), the person deducting advance tax shall deposit with the Department the tax deducted or the amount deemed to have been deducted under sub-section (3) within the time limit mentioned in sub-section (1).

(3) If the person deducting advance tax has not deducted tax under section 87, 88, 88A, or 89, such tax shall be deemed to have been deducted at the time it should have been deducted.

(4) Amended by the Finance Act, 2076. The amount of tax deducted under section 87, 88, 88A, or 89, or the amount deemed to have been deducted under sub-section (3), shall be deposited by the person making such advance deduction, and in cases where sub-section (5) applies, the person from whom tax is deducted shall deposit such tax within Amended by the Finance Act, 2076. twenty-five days after the period mentioned in sub-section (1). Added by the Finance Act, 2076.(4A) Notwithstanding anything contained in sub-section (4), a person paying tax based on turnover under sub-section (4A) of section 4 of the Act Amended by the Finance Act, 2076. shall deposit the advance tax deducted under Chapter 17 at the time of paying installment tax.

(5) Amended by the Finance Act, 2076. In the following circumstances, both the person from whom advance tax is deducted and the person making such advance deduction shall be jointly and severally liable to deposit the tax amount with the Department:-

(a) if the person making advance deduction has not deducted tax from any payment under section Amended by the Finance Act, 2076. 87, 88, 88A, or 89, and

(b) if the person making advance deduction has not deposited with the Department, by the date required for tax deposit under sub-section (4), the amount deemed to have been deducted under sub-section (3).

(6) If the person making advance deduction deducts tax under section Amended by the Finance Act, 2076. 87, 88, 88A, or 89 and deposits it with the Department, any claim made by the person from whom tax was deducted regarding such deducted payment shall be considered equivalent to payment to the person from whom tax was deducted.

(7) If the person making advance deduction deposits with the Department the amount of tax not deducted under section Amended by the Finance Act, 2076.
87, 88, 88A, or 89, such deposited tax amount may be recovered from the person from whom the tax should have been deducted. Amended by the Finance Act, 2076.(8) If the Department is satisfied that a person has not submitted the details or tax required to be deposited under sub-section (1) or (2), or that the situation under sub-section (5) exists in relation to a person, the Department may order the deposit of the amount not deposited or under-deposited, along with interest under section 119 and Added by the Finance Act, 2076. also a fee under section 120 for not deducting tax on a payment from which advance tax should have been deducted. Provided that, before giving such order, a written notice shall be given stating the reasons and allowing a period of fifteen days to submit evidence and justification regarding such order. 91. Tax deduction certificate: (1) The person making advance deduction shall provide a tax deduction certificate as follows to the person from whom tax is deducted, within the time specified in sub-section (2):-

(a) certified in the manner prescribed by the Department, if any, and

(b) showing the amount of tax deducted under section Amended by the Finance Act, 2076. 87, 88, 88A, or 89 and the payment amounts.

(2) The advance tax deduction certificate shall be provided within Amended by the Finance Act, 2076. twenty-five days from the end of the month in which the advance tax deduction was made, stating the period of deduction.

(3) Notwithstanding anything contained in sub-section (2), in the case of tax deduction under section 87, the advance tax deduction certificate shall be provided as follows:-

(a) Such certificate shall be only for the entire period during which the employee remained in service in that income year.

(b) Such certificate shall be provided within thirty days from the end of that year, or if the employee ceased employment with the person making advance deduction during that year, within thirty days from the date of cessation of employment. 92.
92. Payments subject to final withholding tax: (1) The following payments shall be considered as payments subject to final withholding tax:-

(a) dividend paid by a resident Amended by the Finance Act, 2076. company or partnership firm,

(b) rent paid for land or house sourced in Nepal and its related fixtures and equipment, to a natural person other than one engaged in business operations,

(c) benefit paid by a resident person under investment insurance Repealed by the Finance Act, 2076 ,

(d) benefit paid by a resident person as interest from an unapproved retirement fund,

Amended by the Finance Act, 2076.(e) interest paid by a bank, financial institution, or other body issuing bonds mentioned in sub-section (3) of section 88, or by a Amended by the Finance Act, 2076. company or cooperative listed under prevailing law, as follows:-

(1) interest paid to a natural person, sourced in Nepal and not related to business operations,

(2) interest paid to an institution exempt from tax under clause (d) of section 2.

(f) Amended by the Finance Act, 2076. payment made to a non-resident person from which tax is required to be deducted under section 87, 88, 88A, or 89,

(g) all types of payments (excluding regularly paid pensions) including retirement payment made by the Government of Nepal, an approved retirement fund, or an unapproved retirement fund,

(h) meeting allowance up to twenty thousand rupees per meeting, payment for occasional teaching, setting question papers, or evaluating answer scripts,

(i) payment as windfall gains,

(j) return amount distributed to a natural person from a mutual fund,

(k) payment for rent of vehicle or transportation vehicle or transportation service of a natural person depositing tax under sub-section (13) of section 1 of Schedule-1.

(2) If the person making advance deduction or the person from whom tax is deducted deposits with the Department the tax deducted under section Amended by the Finance Act, 2076. 87, 88, 88A, or 89, or the tax deemed to have been deducted under sub-section (3) of section 90, from a payment subject to final withholding, the person under clause (c) of section 3 shall be deemed to have fulfilled the tax liability. 13.
87, 88, 88A, or 89, or the tax deemed to have been deducted under sub-section (3) of section 90, from a payment subject to final withholding, the person under clause (c) of section 3 shall be deemed to have fulfilled the tax liability. 13. Set-off and inclusion of tax not finally deducted: (1) For the purpose of computing the amount of any payment, if any tax has been deducted from such payment, such deducted tax amount shall be treated as part of the payment.

(2) If tax has been deducted on any payment other than a payment subject to final withholding tax, the person from whom tax is deducted shall be deemed to have deposited the following tax amounts:-

(a) the amount of tax deducted from the payment under section 87, 88, or 89,

(b) the amount of tax deemed to have been deducted under sub-section (3) of section 90 or the tax amount deposited with the Department by the person making advance deduction or the person from whom tax is deducted.

(3) The amount under sub-section (2) may be claimed for set-off only against the tax amount required to be deposited by the person from whom tax is deducted for the income year in which the payment was made.

(116)

Chapter 18

Installment Amended by the Finance Act, 2076. and Advance Tax

94.
Deposit of tax in installments: (1) A person who has or is likely to have assessable income in any income year from any business or investment shall deposit tax in three installments as follows:-

 Date by which to deposit Tax amount to be deposited

 By the end of the month of Poush The remaining tax payable out of forty percent of the estimated tax
 By the end of the month of Chaitra The remaining tax payable out of seventy percent of the estimated tax
 By the end of the month of Ashadh The remaining tax payable out of one hundred percent of the estimated tax

Explanation: For the purposes of this sub-section,-

(a) "Estimated tax" means the installment estimated tax computed under section 95 by a person required to deposit installment tax, at the time of depositing the installment tax for any year.

(b) "Remaining tax payable" means the shortfall after deducting the following total amounts from the amount calculated at the percentage specified in this sub-section for installment deposit of the estimated tax:-

(1) the tax amount already deposited in that income year through prior installments under this section before the due date of the relevant installment,

(2) the tax amount deducted, before the due date of the relevant installment in that income year, from payments included in computing that person's income for that year under Chapter 17,

(3) the tax amount deposited, before the due date of the installment, by the withholding agent or the person from whom tax is deducted, being the amount deemed to have been deducted under sub-section (3) of section 90 from the payments mentioned in sub-clause (2),

(117)

and

(4) the tax set-off amount for medical treatment expenses that the person can claim under section 51, in relation to approved medical treatment expenses incurred by that person before the due date of the installment. 94A.
94A. A person paying tax based on turnover shall deposit tax in two installments as follows:-

 Date by which to deposit Tax amount to be deposited

 By the end of the month of Poush Tax applicable at the prescribed rate on transactions up to the 20th of Poush
 By the end of the month of Ashadh The tax amount computed by estimating transactions up to the end of Ashadh based on actual transactions up to the 20th of Ashadh, applying the prescribed rate, and deducting the tax deposited by the end of Poush.

(2) Notwithstanding anything contained in sub-section (1), if the total amount of the installment payable under that sub-section is less than Amended by the Finance Act, 2076. seven thousand five hundred rupees, such installment amount need not be paid.

(3) Notwithstanding anything contained in this section, the advance tax amount required to be deposited under section 95A on the income from the disposal of non-business taxable property shall not be required to be deposited in installment form.

(3) A person depositing installments shall be entitled to deduct the tax amount deposited through installments in any income year under this section against the tax payable for that year. 95.
Added by the Finance Act, 2076.95A. Collection of advance tax: (1) A body operating a commodity futures market service shall collect advance tax at the rate of ten percent on the profit and gain derived from such business from a person trading under the commodity futures market.

(2) If a person, other than a resident body registered under prevailing law and engaged in the transaction of buying and selling of securities, derives a gain from the disposal of an interest in a resident body, advance tax shall be collected on such gain computed under section 37 as follows:-

(120)

(a) in the case of gain derived from the disposal of an interest in a body listed with the Securities Board of Nepal, by the body performing the function of a securities exchange market: Amended by the Finance Act, 2076. in the case of a resident natural person, five percent of the gain amount on interest held for a period exceeding three hundred sixty-five days and seven point five percent of the gain amount on interest held for three hundred sixty-five days or less, Amended by the Finance Act, 2076. in the case of a resident body, ten percent of the gain amount, and in other cases, twenty-five percent of the gain amount,

(b) in the case of gain derived from the disposal of an interest in a body not listed with the Securities Board of Nepal, by the body whose interest is disposed of: in the case of a resident natural person, ten percent of the gain amount, Amended by the Finance Act, 2076. in the case of a resident body, fifteen percent of the gain amount, and in other cases, twenty-five percent of the gain amount. Added by the Finance Act, 2076.(2A) When computing the gain under clause (b) of sub-section (2), it shall be done based on the weighted average cost of the interest held by that person in that body on that date.
Added by the Finance Act, 2076.(2A) When computing the gain under clause (b) of sub-section (2), it shall be done based on the weighted average cost of the interest held by that person in that body on that date. Amended by the Finance Act, 2076.(3) Under clause (b) of sub-section (2), when an interest is disposed of and the Company Registrar's Office registers the shares, registration shall be done only after the proof of payment of advance tax on the gain amount is submitted.

 (4)

(5) For capital gain from the disposal of land or private building of a natural person, the Land Revenue Office shall collect advance tax at the time of registration as follows:-

(a) if the ownership of the disposed non-business taxable property (land and building) is five years or more, at the rate of Amended by the Finance Act, 2076. five percent,

(b) if the ownership of the disposed non-business taxable property (land and building) is less than five years, at the rate of Amended by the Finance Act, 2076. seven point five percent. Added by the Finance Act, 2076.(6) Except as stated in sub-section (5), the Land Revenue Office shall, at the time of registration, collect advance tax at the rate of one point five percent on the value of the disposal of land or building owned by any other person. Added by the Finance Act, 2076.(6A) A resident bank or financial institution providing foreign exchange facility for language tests and standardized test fees to a student going to study abroad shall collect advance tax at the rate of fifteen percent at the time of providing the foreign exchange

(3) In addition to the income required to be included by the person required to submit details pursuant to sub-section (2), the income obtained from the professional tax exemption facility under 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 of the Act shall also be included. Provided, however, that it shall not be mandatory to include retirement payment, meeting allowance, and interest income amended by the Finance Act, 2076..

(4) From the income determined pursuant to sub-section (3), the income under clause (c) of Section 3 of the Act and the income exempt from tax under Section 11 shall be deducted. Provided, however, that a deduction shall not be required if meeting allowance and interest income are not included.

(5) The format of the income statement to be submitted pursuant to sub-section (2) shall be as prescribed by the Department amended by the Finance Act, 2076.. 98.
Provided, however, that a deduction shall not be required if meeting allowance and interest income are not included.

(5) The format of the income statement to be submitted pursuant to sub-section (2) shall be as prescribed by the Department amended by the Finance Act, 2076.. 98. Extension of time for filing income statement: (1) If any person required to file an income statement under Section 96 submits a written application to the Department for additional time within the period for filing such statement, the Department may extend the time for filing the income statement if there appears to be a reasonable cause. The applicant shall be notified in writing of the Department's decision regarding the application for such extension.

(2) Pursuant to sub-section (1), the Department may extend the time for submitting the income statement for a maximum of three months, either at one time or in stages. 99. Assessment of tax: (1) If a person has filed an income statement for any income year by the date on which the income statement is required to be filed, disclosing the following amounts, such income statement shall be deemed to be an assessment of tax:

(a) The amount of tax mentioned in the income statement to be paid for that income year by a person referred to in clauses (a) and (b) of Section 3, and
(b) The amount of tax remaining to be paid for that year as mentioned in the income statement.

(2) If a person does not submit an income statement for any income year, until the income statement is filed, on the date on which the income statement is required to be submitted, it shall be deemed that an assessment has been made as follows:

(a) The amount of any tax deducted from the amount received under Chapter-17 and any amount deposited by him/her in installments for that year under Chapter-18 shall be deemed to be the total amount of his/her tax for that year, and
(b) It shall be deemed that there is no tax remaining to be paid according to the assessment. 100.
100. Best judgment assessment: (1) Where an income statement is required to be filed for any income year or any part of any income year pursuant to sub-section (5) of Section 96, it shall be done in accordance with Section 99.

amended by the Finance Act, 2076.(2) Notwithstanding anything contained in sub-section (1), in the situation referred to in sub-section (5) of Section 96, the Department may, based on the amounts mentioned in sub-clauses (1), (2), and (3) of clause (a) of sub-section (2) of Section 96, fairly assess the tax of such person for any income year or part of that year.

(3) Where an assessment is made under sub-section (1) or (2), the following shall apply:

(a) A person for whom the assessment is made for the full income year shall not be required to file the income statement under sub-section (1) of Section 96 for that income year, or
(b) A person for whom the assessment is made for a part of any income year shall be required to file the income statement for that income year under sub-section (1) of Section 96.

(4) The tax amount deposited according to the assessment for any part of an income year may be adjusted against the tax payable when assessing the tax for the full year.

(5) When making an assessment under this section, the Department shall grant a period of seven days to submit evidence of clarification. 101. Amended assessment: (1) The Department may make an amended assessment to adjust the tax liability of a person whose tax has been assessed under Section 99 or 100 on a fair basis in accordance with the objectives of this Act.

(2) If the Department considers it appropriate, it may further amend the amended assessment made under sub-section (1) as many times as necessary on a fair basis.

(3) When making an assessment under sub-section (1) or (2), the Department must do so within four years from the following date:

(a) In case of assessment under Section 99, the date on which the income statement was required to be submitted,
(b) In case of assessment under sub-section (2) of Section 100, the date on which the notice of assessment was given to the person assessed under Section 102,
(c) In case of assessment under sub-section (1) or (2), the date mentioned in clause (a) or (b) related to the amended assessment made under sub-section (1).

(4) Notwithstanding anything contained in sub-section (3), if the assessment of any person has been erroneously made due to fraud, the Department may amend such assessment at any time.
While making such amendment, it must be completed within one year from the date of obtaining information that the statement was filed or assessment was made fraudulently.

(5) Notwithstanding anything contained in sub-section (3), if an assessment has been amended or the assessed tax has been reduced by the Revenue Tribunal or other competent courts, the Department shall not amend such assessment to that extent. Provided, however, that it shall not be deemed to prevent amendment if an order for reinvestigation is given.

(6) When amending an assessment under this section, the Department shall give a written notice to the person clearly stating the basis for such amendment and grant a period of amended by the Finance Act, 2076.fifteen days to submit evidence of clarification relating to such assessment. 101A. Assessment of tax on unexplained assets: (1) Pursuant to Section 28 of the Money Laundering Prevention Act, 2064, regarding the assessment of tax on unexplained assets of any person, the Department shall, subject to that section, investigate whether a tax-related offense has been committed or not.

(2) If, upon investigation under sub-section (1), the Department finds that no tax-related offense has been committed, income tax at the maximum rate applicable to the income of that year shall be recovered from such person. 102. Notice of assessment: The Department shall give a written notice of assessment under sub-section (2) of Section 100 or under Section 101 to the person assessed, stating the following particulars:

(a) The assessed tax payable and the balance of tax to be deposited for the income year or period to which the assessment relates, by a person referred to in clauses (a) and (b) of Section 3,
(b) The method by which the tax was calculated in the assessment mentioned in clause (a),
(c) The reason why the Department had to make the assessment,
(d) The time within which the assessed tax remaining to be deposited must be deposited, and
(e) The time, place, and manner for filing a complaint if dissatisfied with the assessment. Chapter-20

Tax Collection, Waiver and Refund

103.
104. Claim on property: (1) Notwithstanding anything contained in the prevailing law, if a person fails to deposit tax by the date on which such tax is due, a claim of the Government of Nepal shall be deemed to have arisen on the property of the person maintaining tax arrears.

(2) When making a claim on the property on which a claim arises under sub-section (1), the Department shall give a written notice to that person stating the following:

(a) Description of the property claimed,
(b) The extent of the claim as mentioned in sub-section (3),
(c) The tax related to such claim, and
(d) Any other matter if applicable.

(3) When making a claim on property under sub-section (2), the claim shall arise only to the extent of the tax payable by such person, the interest payable under Section 119 in respect of such tax, and the expenses incurred for the claim and auction sale.

(4) A claim made under sub-section (2) shall not be effective until the following actions are taken:

(a) In respect of buildings and land, until the Department provides information to register the claim under sub-section (6),
(b) In respect of other tangible property, until the Department seizes such property under sub-section (3) of Section 105, and
(c) In any other case, until the notice under sub-section (2) is given to the person maintaining tax arrears.

(5) If the person maintaining tax arrears pays to the Department the entire amount under sub-section (3) covered by the claim made under sub-section (2), the claimed property shall be released.

(6) If the Department makes a claim on any land, land or building under sub-section (2), it shall inform the relevant Land Revenue Office, and that Office shall attach such land, land or building so that it is not sold or transferred to anyone.

(7) If the claim on land, land or building is to be released under sub-section (5), the Department shall give information thereof to the Land Revenue Office. Upon receiving such information, the Land Revenue Office shall release such attached land, land or building.

(8) Regarding the expenses payable under sub-section (3), the Department shall, as soon as possible, give notice to the person maintaining tax arrears stating the following:

(a) The expenses incurred by the Department in relation to the claim and auction sale of the property of the person maintaining tax arrears before giving such notice, and
(b) The date on which such expenses must be paid by the person maintaining tax arrears to the Department.