95. Details of estimated tax to be deposited: (1) Every person required to deposit installments in any income year shall, by the date for paying the first tax installment under section 94 in that year, submit to the Department a statement in the format and manner prescribed by the Department Amended by the Finance Act, 2076. containing an estimate of the following amounts for that person for that year:-

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

(b) the taxable income of that person that may be derived in that year and the tax payable by the person mentioned in clause (a) of section 3, computed under section 4 without deducting the tax set-off amount for medical treatment expenses,

(c) in relation to a foreign permanent establishment in Nepal of a non-resident person, the amount of income repatriated abroad by such foreign establishment in that year and the tax payable by the person mentioned in clause (b) of section 3, computed under sub-section (5) of section 4 on such income, 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) of the person referred to in sub-section (1) shall be the estimated tax required to be deposited in that income year.

(3) For estimating the tax payable in any income year under clause (b) of sub-section (1), when computing the foreign tax set-off amount claimed under section 71, only the foreign income tax that the person has deposited in that year or that the person estimates to deposit in that year shall be computed.

(4) The estimate made by a person depositing tax installments under sub-section (1) shall remain effective for the entire income year until the person submits a revised estimate to the Department, stating the reasons for revision and including the necessary information in the format under sub-section (1).

(5) Notwithstanding anything contained in sub-section (2), a revised estimate submitted under sub-section (4) shall apply only for computing the tax installments payable under section 94 in that income year after the date of submission

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of the revised estimate to the Department.

(6) Notwithstanding anything contained in sub-sections (1) and (5), the Department may prescribe that a person required to deposit tax installments, or a 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 a person required to deposit tax installments fails to submit an estimate under sub-section (1) for any income year, or if the Department is not satisfied with the estimate or revised estimate submitted, the Department may do the following Added by the Finance Act, 2076 :-

(a) the Department may 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 the estimate, and the reasons why the Department is not satisfied with the estimate submitted by the person.

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