chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Explanation: For the purposes of this section, "expenses incurred for the claim and auction sale" shall mean the expenses incurred or to be incurred by the Department as follows:

(a) Expenses incurred or to be incurred by the Department under this section in relation to the creation or release of the claim on such property, or
(b) Expenses incurred or to be incurred by the Department under Section 105 in relation to seizing, keeping, and selling by auction the claimed property. 105. Auction sale of claimed property: (1) The Department shall give notice to the person maintaining tax arrears for the auction sale of the claimed property held by such person.

(2) The notice given under sub-section (1) may be included in or attached to the notice given under sub-section (2) of Section 104. Such notice shall clearly state the following and be given to the person maintaining tax arrears:

(a) The claimed property, the manner and time of auction or sale of such property, and
(b) In respect of tangible property, the manner and place where the Department will take possession of such property.

(3) After the Department gives the notice under sub-section (1) or (2) to the person maintaining tax arrears, it may do the following:

(a) Seize the tangible property mentioned in such notice at any time,
(b) Enter any premises mentioned in the notice under sub-section (1) at any time for the purpose of taking possession of tangible property, and
(c) In respect of tangible property other than land, land or buildings, keep such property at any place the Department deems appropriate at the expense of the person maintaining tax arrears.

(4) After the Department gives the notice under sub-section (1) to the person maintaining tax arrears, it may sell by public auction or sell or dispose of such claimed property in the manner it deems appropriate at the following times:

(a) If the claimed property is land, land or building, thirty days after the date of taking possession of such property under sub-section (3),
(b) If the claimed property is perishable tangible property, one day after taking possession under sub-section (3),
(c) If the claimed property is tangible property other than that mentioned in clause (a) or (b), ten days after taking possession under sub-section (3), and
(d) If the property is of any other kind, ten days after taking possession of such property under sub-section (3).

(5) From the proceeds of the auction sale under sub-section (4), the expenses of the claim and auction sale of the property sold shall first be deducted.
After deducting such expenses, the tax payable and the interest payable under Section 119 in respect of such tax shall be deducted, and if any amount remains thereafter, such amount shall be refunded to the person maintaining tax arrears.

(6) After adjusting the proceeds from the auction sale under sub-section (5), the Department shall give a written notice to the person maintaining tax arrears stating the process of such adjustment.

(7) If, when adjusting the proceeds from the auction sale by following the process under sub-section (5), the amount is insufficient to fully pay the expenses, tax, and interest mentioned in that sub-section, the Department shall recommence proceedings under Section 104, 119 or this section to recover the shortfall. Explanation: For the purposes of this section,-

(a) "Claimed property" shall mean the property of the person maintaining tax arrears mentioned in sub-section (2) of Section 103 or sub-section (2) of Section 104 of the person required to deduct advance tax.
(b) "Expenses incurred for the claim and auction sale" shall mean the expenses incurred or to be incurred by the Department under Section 104.
(c) "Person maintaining tax arrears" shall mean the person required to deduct advance tax mentioned in Sections 103 and 104 as well. 106. Restriction on leaving Nepal amended by the First Amendment.: (1) If a person does not deposit tax within the date on which tax is due, the Department may, for up to 72 hours from the date of payment of the time mentioned in the notice given to such person to deposit tax, require prior approval of the relevant amended by the First Amendment.High Court of the Government of Nepal.

(2) If it becomes necessary to extend the period mentioned in sub-section (1), the Department must obtain prior approval of the relevant High Court.

(3) If the person under sub-section (1) deposits the tax or if the Department feels that satisfactory arrangements have been made regarding the deposit of tax, the Department may withdraw such order by notifying the relevant office under sub-section (1). 107.
107. Officials of entity to be held responsible: (1) If an entity fails to comply with any matter required to be complied with under this Act, every person acting as an official of that entity at that time shall be responsible for such failure.

(2) If an entity commits an offense by not paying tax by the date on which such tax is due, every official currently holding office or who held office up to six months prior shall be jointly or severally responsible for paying such tax.

(3) Notwithstanding anything contained in sub-sections (1) and (2), those sub-sections shall not apply in the following circumstances:

(a) Where the entity committed such offense without the knowledge or consent of that person, and
(b) Where that person had taken or used such care, effort, and skill as would ordinarily be taken by a person exercising ordinary human prudence in similar circumstances to prevent such offense.

(4) If a person deposits tax payable under sub-section (2), that person may do the following:

(a) Recover the amount so deposited from the entity,
(b) For the purpose of clause (a), keep under his/her control the property, including money, of the entity that is in or comes into his/her possession, up to the amount so deposited.

(5) If a person takes control of any property under clause (b) of sub-section (4), neither the entity nor any other person shall be entitled to make any claim against such person. Explanation: For the purposes of this section, "official of any entity" shall mean the manager of that entity or any person acting in that capacity. 108.
Explanation: For the purposes of this section, "official of any entity" shall mean the manager of that entity or any person acting in that capacity. 108. Recovery of tax from receiver: (1) Every receiver shall, within fifteen days from the date on which he/she is appointed as a receiver or the date on which he/she takes possession of any property in Nepal, whichever is earlier, give written notice thereof to the Department.

(2) The Department shall give a written notice to the receiver regarding the amount payable by the person maintaining tax arrears.

(3) After receiving the notice under sub-section (2), the receiver shall do the following:

(a) Sell the necessary portion of the property in his/her possession and, from the proceeds, subject to clause (c) of sub-section (2) of Section 103, pay any debt having priority over the tax payable under sub-section (2), and set aside the amount notified by the Department under that sub-section, and
(b) Deposit with the Department on behalf of the person maintaining tax arrears, the amount so set aside in respect of his/her tax liability.

(4) To the extent that the receiver fails to set aside any amount under sub-section (3), the receiver shall have a personal liability to deposit with the Department an amount equal to the tax liability payable by such person maintaining tax arrears. Provided, however, that the receiver shall not be allowed to recover the deposited amount from the person maintaining tax arrears. Explanation: For the purposes of this section,-

(a) "Receiver" shall mean any of the following persons:
(1) Liquidator,
(2) A person appointed, out of court or by court, as a receiver in respect of any property or entity,
(3) A person holding property as pledgee,
(4) The direct heir, administrator, or executor of the property of a deceased natural person, or
(5) A person acting on behalf of an incapacitated natural person.
(b) "Person maintaining tax arrears" shall mean the person whose property has come into the possession of the receiver. 109.
109. Recovery of tax from person liable to pay amount: (1) If a person maintaining tax arrears fails to pay tax by the date on which such tax is due, the Department may, by written notice to any of the following payers, order the deposit in the Department within the date mentioned in such notice of an amount up to the tax payable on behalf of the person maintaining tax arrears:

(a) A person who is liable to pay money to the person maintaining tax arrears,
(b) A person who holds money for or on behalf of the person maintaining tax arrears,
(c) A person who holds money on behalf of a third party to be paid to the person maintaining tax arrears, or
(d) A person authorized by a third party to pay such money to the person maintaining tax arrears.

(2) The Department shall give a copy of the notice given to the payer under sub-section (1) to the person maintaining tax arrears.

(3) Notwithstanding anything contained in sub-section (1), the date mentioned in the notice under that sub-section shall not be earlier than the dates mentioned in clauses (a) and (b):

(a) The date on which such money is payable to the person maintaining tax arrears or the date on which such money is held on his/her behalf, and
(b) The date on which the notice is given under sub-section (2).

(4) The amount deposited by the payer under sub-section (1) shall be deemed to be a payment to the person maintaining tax arrears. Such amount shall not be claimed from the payer by the person maintaining tax arrears or any other person. 110.
Such amount shall not be claimed from the payer by the person maintaining tax arrears or any other person. 110. Recovery of tax from agent of non-resident person: (1) If a non-resident person maintaining tax arrears fails to pay tax by the date on which such tax is due, the Department may, by written notice to any person holding in his/her possession any property owned by the person maintaining tax arrears, order the deposit of tax on behalf of the person maintaining tax arrears from an amount equal to the market value of such property, not exceeding the amount of tax payable by such person maintaining tax arrears, within the date mentioned in such notice.

(2) If a person deposits tax in accordance with the order under sub-section (1), he/she may do the following:

(a) Recover such payment amount from the person maintaining tax arrears,
(b) For the purpose of clause (a), take control of any property, including money, of the person maintaining tax arrears that is in or comes into his/her possession, up to the amount so paid.

(3) If a person takes control of any property under clause (b) of sub-section (2), neither the person maintaining tax arrears nor any other person shall be entitled to make any claim against such person. Added by the First Amendment.110A. Recovery of arrears tax in installments: Before instituting a case under Section 111, if a person makes a written request to pay the arrears amount in installments, the tax officer may, giving a reasonable period, grant approval to pay in installments. Added by the First Amendment.110B. Liability for tax payment of a joint venture: Persons involved in a joint venture shall be jointly or severally responsible for the payment of the tax liability of the joint venture in which they are involved. Added by the First Amendment.110C. Person receiving actual benefit responsible for tax payment: If it is proved that the person receiving the actual benefit of a business is different from the person in whose name the business is registered, the liability to pay the tax of such business shall be of the person receiving such benefit. 111. Prosecution in case of non-payment: For recovery from a person who fails to deposit tax within the period for deposit, the Department may file a case in the relevant District Court. 112. Waiver: (1) If the tax payable by a person is irrecoverable, the Government of Nepal may grant a full or partial waiver of such tax.

(2) Notwithstanding anything contained in sub-section (1), the Government of Nepal may grant a full or partial waiver of fees and interest imposed under Chapter-22. 113.
113. Tax refund and adjustment: (1) If a person has paid tax in excess of his/her tax liability, the Department may direct that the excess tax amount be deducted from the tax payable by him/her under this Act. Any amount remaining after such deduction shall be refunded by the Department to the relevant person.

(2) If a person does not have to deposit the tax related to the interest deposited under Section 11 9, the Department shall refund such interest to that person. Amended by the First Amendment.(3) If a person applies to the Department as prescribed to receive a refund under sub-section (1), the Department shall refund such amount within sixty days from the date of application.

(4) A person applying under sub-section (3) must submit such application within two years from the later of the following dates. If the application is not made within that period, the amount under sub-section (1) shall not be refunded:

(a) The date of expiry of the income year in which the excess amount was deposited,
(b) The date on which the excess amount was deposited, or
(c) The date of the court verdict.

(5) The Department shall give a written notice of its decision regarding the application made under sub-section (3) to the relevant person.

(6) When the Department refunds any tax amount to a person by court order or for other reasons, the Department shall also pay to such person interest at the standard rate for the following periods:

(a) If such tax refund relates to the adjustment of excess tax available to a person in any income year under Section 93, 94 or 100, the period from the date on which the income statement was required to be submitted under Section 96 to the date of the refund, and
(b) In any other case, the period from the date on which such person paid the refundable tax to the date of the refund.

(7) The adjustment of tax credits claimable under Section 51 or 71 in any income year and such tax credits shall not be adjusted or refunded under this sub-section. Provided, however, that the adjustment of tax credits in that year may be made in accordance with the provisions made in sub-section (2) of Section 4, sub-section (4) of Section 51, and sub-section (3) of Section 71. Amended by the Finance Act, 2076.386(8)

Chapter-21

Review and Appeal

114.
Provided, however, that the adjustment of tax credits in that year may be made in accordance with the provisions made in sub-section (2) of Section 4, sub-section (4) of Section 51, and sub-section (3) of Section 71. Amended by the Finance Act, 2076.386(8)

Chapter-21

Review and Appeal

114. Decisions subject to administrative review and procedure: (1) For the purposes of this Act, the following decisions shall be subject to administrative review:

(a) A pre-order issued by the Department under Section 76,

Added by the Finance Act, 2076.387(a1) A decision made or order given under sub-section (8) of Section 90,

(b) The estimate made or the decision to make an estimate by the Department regarding the estimated tax payable by any person under sub-section (7) of Section 95,

(c) A decision made by the Department to order a person to submit an income statement under sub-section (5) of Section 96 or under Section 97,

(d) A decision made by the Department on an application made by a person for extension of the time for submitting an income statement under Section 98,

(e) The determination of tax payable by a person for any income year under Section 100 or 101, Added by the Finance Act, 2076.or the determination of auction sale expenses under sub-section (5) of Section 105, or the determination of fees and interest payable by a person under Section 122,

(f) A notice given by the Department under sub-section (2) of Section 108 requiring a person in the capacity of a receiver to set aside an amount as payable,

(g) A decision made by the Department under sub-section (1) of Section 109 to order a person holding money payable to the person maintaining tax arrears to deposit it in the Department,

(h) A decision made by the Department under sub-section (1) of Section 110 to order a person to deposit the tax of a non-resident person on his/her behalf,

(i) A decision made by the Department on an application made by a person for tax refund under sub-section (5) of Section 113, and

(j) A decision made by the Department on an application made by a person for extension of the time for filing an application under sub-section (3) of Section 115 amended by the Finance Act, 2076..

(2) Even if the Department has made a decision on matters mentioned in clauses (d), (i) and (j) of sub-section (1), if the Department does not give notice of the decision within thirty days of the application to the person applying under Section 98, sub-section (3) of Section 113 or sub-section (3) of Section 115, such application shall be deemed to be a decision to reject it, and that decision shall be subject to administrative review under sub-section (1).

(3) If notice of the decision within the period under sub-section (2) is not received by the person applying and if information thereof is registered in the Department, it shall be deemed that the Department has made a decision to reject the application mentioned in that sub-section and given notice thereof to that person on that date.
115. Right to file application for administrative review: (1) A person dissatisfied with a decision subject to administrative review under Section 114 may file an application against that decision with the Department within thirty days from the date of receipt of notice of such decision.

(2) An application filed under sub-section (1) shall clearly state the reasons and grounds for such review.

(3) If a person, having missed the period for filing an application under sub-section (1), files an application for extension of time within seven days from the date of missing the deadline, the Department may do the following:

(a) If reasonable cause appears, extend the time for up to a maximum of thirty days from the date of missing the deadline under sub-section (1), and
(b) Give written notice of the Department's decision on such application to the applicant.

(4) The filing of an application under sub-section (1) shall not be deemed to affect the implementation of the decision mentioned in sub-section (1) of Section 114.

(5) Notwithstanding anything contained in sub-section (4), until the application filed by a person under sub-section (1) is finally decided, the Department may stay or otherwise affect the decision made under sub-section (1) of Section 114. Amended by the Finance Act, 2076.390(6) A person filing an application under sub-section (1) shall pay the entire amount of the non-disputed tax and amended by the Finance Act, 2076.one-fourth of the disputed tax out of the assessed tax amount.

(7) On an application filed by a person under sub-section (1), the Department may do the following:

(a) Accept or reject the matters mentioned in the application in full or in part, and
(b) Give written notice of the decision on the application to that person. Added by the Finance Act, 2076.392(8) If the Department does not give notice of its decision on the application within sixty days from the date of filing the application under sub-section (1), the applicant may file a review in the Revenue Tribunal under Section 116. Added by the Finance Act, 2076.393(9) If a review is filed under sub-section (8), such person shall, within fifteen days from the date of filing the review, give written information to the Department attaching a copy of the appeal petition. 116.
Added by the Finance Act, 2076.393(9) If a review is filed under sub-section (8), such person shall, within fifteen days from the date of filing the review, give written information to the Department attaching a copy of the appeal petition. 116. Appeal to the Revenue Tribunal: (1) A person dissatisfied with the decision on an application filed with the Department under Section 115 may file an appeal with the Revenue Tribunal under the Revenue Tribunal Act, 2031.

(2) A person filing an appeal under sub-section (1) shall register one copy of the notice of appeal with the Department within fifteen days of filing the appeal.

(3) The filing of an appeal under sub-section (1) shall not be deemed to affect the implementation of the decision mentioned in sub-section (1) of Section 114.

(4) Notwithstanding anything contained in sub-section (1) of Section 114, an appeal shall lie to the Revenue Tribunal if the decision subject to administrative review in that sub-section was made by the Director General. Amended by the Finance Act, 2076.394(5) When filing an appeal with the Revenue Tribunal under sub-section (1), the non-disputed tax amount out of the assessed tax shall be paid, and a deposit of fifty percent of the disputed tax amount, fees and penalty, or a bank guarantee for such amount, shall be provided. Amended by the Finance Act, 2076.395(6) When calculating the deposit amount or bank guarantee under sub-section (5), the twenty-five percent tax amount deposited in the Department for administrative review shall also be counted added by the Finance Act, 2076.396. Added by the Finance Act, 2076.397(7) A bank voucher deposited in the deposit account at the Treasury and Comptroller Office in the name of the relevant office, or a bank guarantee for an equal amount, as per sub-section (5), shall be submitted along with the appeal petition. Chapter-22

Fees and Interest

117.
Chapter-22

Fees and Interest

117. Fee for failure to keep records or file returns or income statements: Amended by the Finance Act, 2076.398(1) If a person fails to submit the following returns, such person shall be liable to a fee as follows:

(a) If an income statement for any income year is not submitted under sub-section (1) of Section 95, a fee of amended by the Finance Act, 2076.five thousand rupees or an amount equal to zero point zero one percent of the assessable income amount mentioned in the income statement, whichever is higher,

(b) If any person required to collect advance tax fails to submit the return under amended by the Finance Act, 2076.sub-section (9) of Section 95A, such person shall be liable to a fee at the rate of one and a half percent per annum of the amount of advance tax to be collected for each month and part of a month from the date on which the return was required to be submitted to the date on which the return is submitted,

(c) If an income statement for any income year is not submitted under sub-section (1) of Section 96, in the case of a person referred to in sub-section (4) of Section 4 of the Act, a fee of amended by the Finance Act, 2076.one thousand two hundred rupees per statement, and if the period is less than one year, at the rate of one hundred rupees per month, and in the case of other persons, a fee of zero point one percent per annum of the assessable income amount calculated by not deducting any deductible amount and including any amount to be included, or amended by the Finance Act, 2076.one thousand two hundred rupees per statement, and if the period is less than one year, at the rate of one hundred rupees per month, whichever is higher.
Added by the Finance Act, 2076.403

Added by the Finance Act, 2076.404(d) If an income statement for any income year is not submitted under Section 97, a fee equal to zero point one percent per annum of the amount resulting after deducting the income subject to final withholding from the assessable income of such person, or a fee of one thousand two hundred rupees per statement, and if the period is less than one year, at the rate of one hundred rupees per month, whichever is higher.

(2) If a person fails to keep records required to be kept under Section 81 for any income year, such person shall be liable to a fee equal to zero point one percent of the assessable amount calculated by not deducting any deductible amount and including any amounts to be included when calculating income for any income year for which such records were not kept, or one thousand rupees, whichever is higher.

(3) If any agent required to deduct advance tax fails to submit the return under sub-section (1) of Section 90, such agent shall be liable to a fee at the rate of two and a half percent per annum of the amount of advance tax to be deducted for each month and part of a month from the date on which the return was required to be submitted until such return is filed. 118.
118. Interest payable if estimated tax paid is lower in installments: (1) If, for an income year, in relation to the installment amount payable under Section 94 by a person, the amount mentioned in clause (b) exceeds the amount mentioned in clause (a), interest under sub-section (2) shall be payable on the amount of such excess:

(a) The amount of each installment paid by such person in that income year,
(b) The amount that would have been payable as an installment for each installment period if the estimate or revised estimate of the total amount payable by way of installments for that income year was correct, or if such amount is not correct, amended by the Finance Act, 2076.90 percent of the amount payable as an installment for each installment period of the tax amount payable by a person referred to in clauses (a) and (b) of Section 3.

(2) A person under sub-section (1) shall be liable to interest at the standard rate for each month and part of a month from the date on which that installment was payable for that year until the following period:

(a) In the case of a person making an assessment under sub-section (1) of Section 99, until the date on which the income statement is required to be submitted,
(b) In the case of a person for whom the Department makes a first amended assessment under Section 101 due to failure to make an assessment under sub-section (1) of Section 99, until the date on which notice of such amended assessment is served under Section 102. Explanation: For the purposes of this section, "amount payable by way of installments" shall mean the installment amount calculated in accordance with sub-section (1) of Section 94 for a person who, after submitting an estimate once, does not submit a revised estimate, and for whom the Department makes an estimate under

125. Penalty for Obstructing or Unduly Influencing Tax Administration: (1) A person who commits the following acts shall be liable to a fine of five thousand rupees to twenty thousand rupees or imprisonment for one month to three months or both:

(a) obstructs an officer of the Department in the course of performing his/her duty under this Act,
(b) fails to act in accordance with the notice under Section 83, or
(c) obstructs the implementation of this Act in any other manner.

(2) If an attempt is made to commit an act under sub-section (1), half of the penalty mentioned in that sub-section shall be imposed. 126.
126. Penalty for Offence Committed by an Authorized or Unauthorized Person: (1) Any authorized person who violates Section 84 shall be liable to a fine of up to eighty thousand rupees or imprisonment for up to one year or both.

(2) If any person not authorized under this Act collects or attempts to collect any tax or any other amount as tax, he/she shall be liable to a fine of eighty thousand rupees to two hundred and forty thousand rupees or imprisonment for one year to three years or both. 127. Penalty for Abettor: A person who knowingly assists, advises, or abets another person in committing any offence under this Act, or Amended by the Finance Act, 2055.414 certifies false financial or tax accounts, or provides incorrect advice, shall be liable to half of the penalty prescribed for the offender. Provided that, if such abettor is a government employee, he/she shall be liable to the same penalty as the offender. 128. Penalty for Non-Compliance: Unless otherwise provided in this Act, a person who fails to comply with any provision of this Act or the Rules made under this Act shall be liable to a fine of five thousand rupees to thirty thousand rupees. 129. Department May Order to Deposit Fine Amount: (1) Notwithstanding anything elsewhere contained in this Chapter, if before the initiation of judicial proceedings a person accepts in writing that he/she has committed one or more offences referred to in this Chapter other than those mentioned in Section 126, the Department may order such person to deposit a fine amount not exceeding the fine leviable for such one or more offences.

(2) When issuing an order under sub-section (1), the Department shall specify in that order the nature of the offence, the amount of fine to be paid, and the date by which the fine amount must be paid.

(3) An order given by the Department under this section shall be final and no appeal shall lie against it. 130. Government of Nepal to be Plaintiff: In a case under this Chapter, the Government of Nepal shall be the plaintiff. 131. Investigation and Filing of Cases: (1) Investigation into an offence punishable under this Chapter shall be conducted by the designated officer, and such investigation shall be completed and the case filed in the concerned District Court within thirty-five days.

(2) While conducting an investigation under sub-section (1), the investigating officer shall seek the opinion and advice of the government attorney. Chapter-24

Miscellaneous

132.
Chapter-24

Miscellaneous

132. May Obtain Services of Experts: The Government of Nepal Amended by the Finance Act, 2055.415 or the Department may obtain the services of relevant experts for tax examination work, and the provisions regarding government confidentiality mentioned in Section 84 shall also apply to such experts. 133. Departmental Action to Be Taken: If, due to negligence in making a tax assessment, the liability of a taxpayer is increased or decreased, the Director General may initiate departmental action against the officer concerned for making such assessment or for failing to issue a revised assessment within the period under sub-section (3) of Section 101, in accordance with the prevailing law relating to his/her service conditions. 134. Identity Card of Officer: Every officer shall carry an identity card as prescribed and shall show it to anyone who requests to see it in the course of performing official duties. 135. Powers Equivalent to a Court: For the purposes of this Act, the Department shall have powers equivalent to a court under the prevailing law regarding summoning persons, taking statements, examining evidence, and requiring the production of documents. 136. Not Liable for Acts Done in Good Faith: Notwithstanding anything elsewhere contained in this Act, no officer shall be personally liable for any act done in good faith in the course of performing his/her duty. Added by the Finance Act, 2055.416136A. Provision for Reward and Informer's Fee: (1) If a person provides information with evidence that a person has evaded or attempted to evade his/her tax liability in whole or in part, a reward equivalent to twenty percent of the tax amount determined based on the evidence submitted by such person out of the tax recovered on the basis of such information may be given by the decision of the Director General.

(2) If there is more than one person entitled to the reward under sub-section (1), the reward amount shall be distributed proportionately.

(3) Notwithstanding anything contained in sub-section (1), a person providing information about revenue leakage may be given an informer's fee of up to ten thousand rupees immediately, in accordance with the procedure prescribed by the Department based on the veracity of the information.

(4) The name, surname, and address of a person providing information under sub-sections (1) and (3) shall be kept confidential. 137. Government of Nepal May Give Orders or Directions: For making tax administration effective, the Government of Nepal may give necessary orders or directions to the Department. 138. Power to Make Rules: The Government of Nepal may make necessary Rules to implement the objectives of this Act. 139.
137. Government of Nepal May Give Orders or Directions: For making tax administration effective, the Government of Nepal may give necessary orders or directions to the Department. 138. Power to Make Rules: The Government of Nepal may make necessary Rules to implement the objectives of this Act. 139. May Issue Directives: Subject to this Act or the Rules made under this Act, the Department may issue necessary directives. 140. Amendment, Addition or Deletion in Schedules: The Government of Nepal may, by publishing a notice in the Nepal Gazette, make necessary additions, deletions, or amendments in the Schedules other than Schedule-1. 141. Police to Render Assistance: It shall be the duty of the police to render assistance requested by the Department in relation to the implementation of this Act or the Rules made under this Act. Added by the Finance Act, 2055.417141A. 142. Tax Provisions to Be According to This Act: Notwithstanding anything contained in the prevailing law, no other Act shall make any amendment, change, or other provision regarding taxes under this Act, except to the extent that the Finance Act applicable for each fiscal year amends this Act to make provisions regarding levying, assessing, increasing, decreasing, granting exemption, or remission of taxes. 143.
143. Repeal, Amendment and Saving: (1) The Income Tax Act, 2031 and the House and Land Rent Tax Act, 2023 are hereby repealed.

(2) The following Acts are amended as follows:

(a) Amended by the Finance Act, 2055.418

(b) Amendment to the Employees Provident Fund Act, 2019: In the proviso to Section 18 of the Employees Provident Fund Act, 2019, the words “no tax of any kind shall be levied” are replaced with the words “no tax of any kind except income tax shall be levied”.

(c) Amendment to the Nepal Petroleum Act, 2040: Clause (c) of Section 13 of the Nepal Petroleum Act, 2040 is hereby omitted.

(d) Amendment to Section 29 of the Pension Fund Act, 2042: In Section 29 of the Pension Fund Act, 2042, the words “no other tax of a similar nature shall be levied” are replaced with the words “no tax of any kind except income tax shall be levied”.

(e) Amendment to Section 51 of the Citizen Investment Fund Act, 2047: Section 51 of the Citizen Investment Fund Act, 2047 is hereby repealed.

(f) Amendment to Section 30 of the Nepal Amended by the Finance Act, 2055.419 Science and Technology Academy Act, 2048: Section 30 of the Nepal Amended by the Finance Act, 2055.420 Science and Technology Academy Act, 2048 is hereby repealed.

(g) Amended by the Finance Act, 2055.421 Amendment to Section 15 of the Industrial Enterprises Act, 2049:

(1) Clauses (c), (d), (e), (j), (th), (t), (th), (d) and (dh) of Section 15 of the Industrial Enterprises Act, 2049 are hereby omitted. Amended by the Finance Act, 2055.422

(2) The words “in income tax, thirty, twenty-five and twenty percent respectively for ten years from the date of operation and” appearing in Clause (ch) are hereby omitted.

(h) Amended by the Finance Act, 2055.423 Amendment to the Foreign Investment and Technology Transfer Act, 2049: Sub-section (1A) of Section 5 of the Foreign Investment and Technology Transfer Act, 2049 is hereby omitted.

(i) Amendment to the B.P. Koirala Institute of Health Sciences Act, 2049: The word “income tax” appearing in the second paragraph of Section 21 of the B.P.
Koirala Institute of Health Sciences Act, 2049: The word “income tax” appearing in the second paragraph of Section 21 of the B.P. Koirala Institute of Health Sciences Act, 2049 is hereby omitted.

(j) Amendment to the Tribhuvan University Act, 2049: Sub-section (2) of Section 33 of the Tribhuvan University Act, 2049 is hereby omitted.

(k) Amendment to Section 12 of the Electricity Act, 2049:
(1) The word “Income Tax” in the heading of Section 12 of the Electricity Act, 2049 is hereby omitted.
(2) Sub-sections (1), (2), (3), (4), (5) and (6) are hereby omitted.

(l) Amendment to Section 36 of the Pokhara University Act, 2053: Sub-section (2) of Section 36 of the Pokhara University Act, 2053 is hereby omitted.

(m) Amendment to Section 18 of the B.P. Koirala Memorial Cancer Hospital Act, 2053: The word “income tax” appearing in sub-section (1) of Section 18 of the B.P. Koirala Memorial Cancer Hospital Act, 2053 is hereby omitted.

(n) Amendment to the Urban Development Fund Act, 2053: Section 24 of the Urban Development Fund Act, 2053 is hereby repealed.

(o) Sub-section (1) of Section 34 of the Telecommunications Act, 2053 is hereby repealed.

(3) All acts done under the Acts or Sections of Acts repealed or amended under sub-section (1) or (2) shall be deemed to have been done under this Act.

(4) With regard to the assessment and collection of income tax for income years prior to the commencement of this Act, the provisions of the Income Tax Act, 2031 shall apply. Schedule-1

(Relating to Section 4)

Tax Rates

1.
Schedule-1

(Relating to Section 4)

Tax Rates

1. In respect of a natural person: Amended by the Finance Act, 2076.4(1) Tax shall be levied on the taxable income of a resident natural person for any income year, subject to sub-sections (2), (4) and (4A) of this Schedule, at the following rates:

(a) One percent for employment taxable income up to five hundred thousand rupees,

Added by the Finance Act, 2076.Provided that, in the case of a taxpayer registered as a sole proprietorship, income from retirement benefits, contributions to a retirement fund and contribution-based social security fund shall not be subject to tax under this clause.

(b) For taxable income exceeding five hundred thousand rupees but up to seven hundred thousand rupees, five thousand rupees on the first five hundred thousand rupees as per clause (a) and ten percent on the taxable income exceeding five hundred thousand rupees,

(c) For taxable income exceeding seven hundred thousand rupees but up to one million rupees, twenty-five thousand rupees on the first seven hundred thousand rupees as per clause (b) and twenty percent on the taxable income exceeding seven hundred thousand rupees,

(d) For taxable income exceeding one million rupees but up to two million rupees, eighty-five thousand rupees on the first one million rupees as per clause (c) and thirty percent on the taxable income exceeding one million rupees, and

Amended by the Finance Act, 2076.(e) For taxable income exceeding two million rupees up to five million rupees, an additional twenty percent on the tax rate applicable under clause (d), and for taxable income exceeding five million rupees, an additional thirty percent on the tax rate applicable under clause (d) on the excess taxable income.
Added by the Finance Act, 2076.(2) Tax shall be levied on the taxable income of any couple making a selection under Section 50 of this Act for any income year, subject to sub-sections (4) and (4A) of this Schedule, at the following rates:

(a) One percent for employment taxable income up to six hundred thousand rupees,

Added by the Finance Act, 2076.Provided that, in the case of a taxpayer registered as a sole proprietorship, income from retirement benefits, contributions to a retirement fund and contribution-based social security fund shall not be subject to tax under this clause.

(b) For taxable income exceeding six hundred thousand rupees but up to eight hundred thousand rupees, six thousand rupees on the first six hundred thousand rupees as per clause (a) and ten percent on the taxable income exceeding six hundred thousand rupees,

(c) For taxable income exceeding eight hundred thousand rupees but up to one million one hundred thousand rupees, twenty-six thousand rupees on the first eight hundred thousand rupees as per clause (b) and twenty percent on the taxable income exceeding eight hundred thousand rupees,

(d) For taxable income exceeding one million one hundred thousand rupees but up to two million rupees, eighty-six thousand rupees on the first one million one hundred thousand rupees as per clause (c) and thirty percent on the taxable income exceeding one million one hundred thousand rupees,

Added by the Finance Act, 2076.(e) For taxable income exceeding two million rupees up to five million rupees, an additional twenty percent on the tax rate applicable under clause (d), and for taxable income exceeding five million rupees, an additional thirty percent on the tax rate applicable under clause (d) on the excess taxable income. Added by the Finance Act, 2076.(3) The provision mentioned in sub-section (4) shall apply in the following circumstances:

(a) In respect of a resident natural person whose income in any income year exceeds five hundred thousand rupees, or in respect of a resident couple who have opted under Section 50 of this Act, whose income in any income year exceeds six hundred thousand rupees,
(b) The net gain from the disposal of non-business chargeable assets is included in the income of that natural person or couple and in the calculation of the corresponding taxable income.
Added by the Finance Act, 2076.(4) Subject to sub-section (3), the following persons shall be taxed as follows:

(a) Tax shall be levied at the rate specified in sub-section (1) or (2) of this Schedule as if only the following amount were the taxable income of that natural person or couple, on whichever of the following amounts is higher:
(1) The amount remaining after deducting the amount of such gain from the total taxable income of that natural person or couple,
(2) Five hundred thousand rupees in the case of a natural person or six hundred thousand rupees in the case of a couple.
(b) The remaining amount of such taxable income shall be taxed at the rate of ten percent. Provided that,
(1) If the ownership of the disposed non-business chargeable asset (land and real estate) is five years or more, tax shall be levied at the rate of five percent.
(2) If the ownership of the disposed non-business chargeable asset (land and real estate) is less than five years, tax shall be levied at the rate of seven point five percent.
(3) In the case of gain from the disposal of an interest held for a period exceeding three hundred and sixty-five days in an entity listed on the Nepal Securities Board, tax shall be levied at the rate of five percent, and in the case of gain from the disposal of an interest held for a period of three hundred and sixty-five days or less, tax shall be levied at the rate of seven point five percent. Added by the Finance Act, 2076.(4A) Notwithstanding anything else contained in this section, income under sub-sections (6), (6C), (6D) of Section 95A of any resident natural person not engaged in operating a business Added by the Finance Act, 2076.shall be taxed at five percent. Added by the Finance Act, 2076.(5) Tax under this section shall be calculated only on the amount remaining after deducting from the taxable income up to a maximum of fifty thousand rupees as prescribed for remote area allowance payable to a natural person working in a remote area designated by the Government of Nepal. Added by the Finance Act, 2076.(6) Tax under this section shall be calculated only on the amount remaining after deducting from the taxable income seventy-five percent of the foreign allowance of an employee working in a Nepalese diplomatic mission abroad.
Added by the Finance Act, 2076.(6) Tax under this section shall be calculated only on the amount remaining after deducting from the taxable income seventy-five percent of the foreign allowance of an employee working in a Nepalese diplomatic mission abroad. Added by the Finance Act, 2076.(7) The tax amount under sub-section (4) of Section 4 of this Act shall be as follows:

(a) In the case of a natural person conducting business in a metropolitan city or sub-metropolitan city area: seven thousand five hundred rupees,
(b) In the case of a natural person conducting business in a municipality area: four thousand rupees,
(c) In the case of a natural person conducting business in an area other than those mentioned in clauses (a) and (b): two thousand five hundred rupees.

(8) Tax shall be levied at the rate of twenty-five percent on the taxable income of a non-resident natural person for any income year. Amended by the Finance Act, 2076.440(9A) Notwithstanding anything else contained in this section, if a resident natural person has retirement income, tax under this section shall be calculated only on the amount remaining after deducting from the taxable income an amount equal to twenty-five percent of the amount mentioned in clause (a) of sub-section (1) for a natural person or clause (a) of sub-section (2) for a couple. Provided that, the limit of the amount to be deducted in this manner shall not exceed the prescribed amount. Amended by the Finance Act, 2076.441(10) Notwithstanding anything else contained in this section, if a resident natural person is a person with disability, tax under this section shall be calculated only on the amount remaining after deducting from the taxable income an amount equal to fifty percent of the amount mentioned in clause (a) of sub-section (1) for such natural person or clause (a) of sub-section (2) for a couple. Amended by the Finance Act, 2076.442(11) Notwithstanding anything else contained in this section, if a resident natural person is a woman earning only remuneration income, there shall be a ten percent reduction in the tax amount payable by such natural person. Amended by the Finance Act, 2076.443(12) Notwithstanding anything else contained in this section, if a resident natural person has made an investment insurance, tax under this section shall be calculated only on the amount remaining after deducting from the taxable income the annual premium paid for such insurance or Amended by the Finance Act, 2076.444 forty thousand rupees, whichever is lower.
Amended by the Finance Act, 2076.445(13) Notwithstanding anything else contained in this section, in the case of vehicles for hire, annual income tax at the following rates shall be collected from the owner at the time of registration or renewal of the vehicle through the Transport Management Office:

 Vehicle Type Annual Tax Payable per Vehicle

 (1) Car, Jeep, Van, Micro Bus
 (a) Up to 1300 cc Rs. 5,500/-
 (b) From 1301 to 2000 cc Rs. 6,000/-
 (c) From 2001 to 2100 cc Rs. 6,500/-
 (d) From 2101 to 4000 cc Rs. 8,000/-
 (e) Above 4001 cc Rs. 9,000/-
 (2) Mini Truck, Mini Bus, Water Tanker Rs. 8,000/-
 (3) Mini Tipper Rs. 9,000/-
 (4) Truck, Bus Rs. 10,500/-
 (5) Machinery Equipment like Dozer, Excavator, Loader, Roller, Crane Rs. 15,500/-
 (6) Oil Tanker, Gas Bullet, Tipper Rs. 15,500/-
 (7) Tractor Rs. 2,500/-
 (8) Power Tiller Rs. 2,000/-
 (9) Auto Rickshaw, Three Wheeler, Tempo Rs. 2,500/-
 (10) Electric Vehicle
 (a) Up to 50 kW Rs. 3,000/-
 (b) From 50 kW to 125 kW Rs. 4,000/-
 (c) From 125 kW to 200 kW Rs. 6,000/-
 (d) Above 200 kW Rs. 7,500/-

Amended by the Finance Act, 2076.446(14)

Amended by the Finance Act, 2076.447(15)

Amended by the Finance Act, 2076.448(16) Notwithstanding anything else contained in this section, if a resident natural person has made health insurance with a resident insurance company, tax under this section shall be calculated only on the amount remaining after deducting from the taxable income the annual premium paid for such insurance or twenty thousand rupees, whichever is lower. Amended by the Finance Act, 2076.449(16A) Notwithstanding anything else contained in this section, if a resident natural person has insured his/her own private building with a resident insurance company, tax under this section shall be calculated only on the amount remaining after deducting from the taxable income the annual premium paid for such insurance or five thousand rupees, whichever is lower.