Income Tax Act, 2002

95. Details of estimated tax to be deposited: (1) Every person required to deposit installments in any income year shall, within the due date for paying the first tax installment for that year under section 94, submit to the Department a statement in the Added by the Finance Act, 2075. format and manner prescribed by the Department, containing estimates of the following amounts for that person for that year:

(a) the assessable income that person is likely to derive from each source of employment, business and investment in that year, and the source of such income,

(b) the taxable income of that person likely to be derived in that year and the tax payable by the person mentioned in clause (a) of section 3, calculated according to section 4 without deducting the tax credit amount on account of medical treatment expenses,

(c) in relation to a foreign establishment in Nepal of a non-resident person, the income amount remitted abroad by such foreign establishment in that year and the tax payable on such income by the person mentioned in clause (b) of section 3, calculated under sub-section (5) of section 4, and

(d) any other details prescribed by the Department.

(2) The sum of the tax amounts mentioned in clauses (b) and (c) of sub-section (1) for the person referred to in sub-section (1) shall be the estimated tax payable for that income year.

(3) For the purpose of estimating the tax payable in any income year under clause (b) of sub-section (1), while calculating the foreign tax credit amount claimable under section 71, only the foreign tax paid by that person in that year or the foreign income tax that that person estimates is payable in that year shall be taken into account.

(4) Unless a person depositing tax installments submits a revised estimate to the Department, mentioning the required information in the form under sub-section (1) and stating the reasons for revision, the estimate made by that person under that sub-section shall remain in effect for the whole of that income year.

(5) Notwithstanding anything contained in sub-section (2), the revised estimate submitted under sub-section (4) by any person shall apply only for the purpose of calculating the tax installment payable under section 94 in that income year after the date of submission of such revised estimate to the Department.

(6) Notwithstanding anything contained in sub-sections (1) and (5), the Department may prescribe that any person or class of persons required to deposit tax installments need not submit an estimate under sub-section (1).

(7) Notwithstanding anything contained in sub-section (2), if any person required to deposit tax installments fails to submit an estimate in any income year under sub-section (1), or if the Department is not satisfied with the estimate or revised estimate submitted, Omitted by the Finance Act, 2075. the Department may do the following:

(a) estimate the estimated tax payable by that person in that year based on the tax payable by the person mentioned in clause (a) or (b) of section 3 in the preceding income year, and

(b) the Department shall give a written notice to the person required to deposit installments, stating the estimate prepared under clause (a), the method used to prepare such estimate, and the reason, if the Department is not satisfied with the estimate submitted by the person.

(8) If the Department gives a notice under sub-section (7) to the person required to deposit installments, the estimated tax amount payable by that person in that year shall be the amount estimated by the Department.