Budget Highlight Fiscal Year 2079-80
Key Highlights
- The government will run a decade-long campaign for the up-liftment of innovation and entrepreneurial sectors till 2089.
- There will be made arrangements for the use of “Made in Nepal” products in government offices and units as much as possible
- For the Youth empowerment and supporting innovation and start-up culture, the previously made policies on start-up promotion will be continued
- Rapid Economic Growth by optimum utilization of Available resources
- Production oriented economy by partnership with private sector
- Self Sustainability on agriculture & Forest Products
- Strengthen of public welfare by providing social security & health insurance benefits.
Budget Priorities
- Tourism Sector: Rs. 9.38 Arba
- Ministry of Agriculture and Livestock Development: Rs 55.97 Arba
- Industrial Infrastructure: Rs 3.89 Arba
- Ministry of Industry, Commerce and Supplies: Rs 10.48 Arba
- Prime Minister’s Employment Program: Rs 7.5 Arba
- Health Insurance Program: Rs 7.5 Arba
- Ministry of Health and Population: Rs 69.38 Arba
- Rs. 2 Kharba to state and Rs. 40 Arba to the Local level
- Per capita income of Nepal is increased by Rs 18,000.
- Establishment of business incubation centers: Rs. 26 Crores.
- Rs.6.53 Arba budget allocation for railway construction.
- Rs.2.46 Arba to the Ministry of Youth and Sports.
- Rs.13 Arba allocation in forest and environment sector.
- Rs. 6.70 Arba allocated for postal highway.
- Continuity of constituency strategic road; Rs. 7 Arba.
- Rs. 70.05 Arba for Education Sector.
- Rs. 1.42 Arba for the construction of all local level administrative buildings within two years
- Building of public infrastructure with strategic importance
- Rapid industrialization program
- Ending all types of discrimination & inequality & access to judiciary services for law seeker
- Coordination & cooperation between 3 levels of government for the overall development of economy
- Digitalization of government services.
Budget Size
Year | Amount in Billion | Increase % |
2078-79(2021-22) | 1,793.00 | 9% |
| 2078-79(2021-22) | 1,647.00 | 12% |
General Taxes -2079-80
| Health Risk Tax | |
| Bidi | 30 Paisa /Stick |
| Cigarette | 60 Paisa /Stick |
| Kahini, Surti, Pan Masala | 60 Rupees /kg |
| Education Service Fee | |
| Tuition Fees | 2% |
| Casino Royalty | |
| General Casino | 50 Million/Annum |
| Casino with modern Equipment | 15 Million/Annum
|
| Infrastructure Development Tax | |
| Import of Diesel & Petrol | Rs. 10 /Ltr |
| Road Maintenance & Improvement Fees | |
| For Petrol | Rs.4/Ltr |
| For Diesel | Rs.2/Ltr |
| Pollution Control Fee | |
| Distribution of petrol & diesel | Rs. 1.5/Ltr |
| Telecommunication Service Charge | |
| Imposed by telecom industry on customer | 10% |
| Digital Service Tax | |
| Applicable for Non Resident having transaction above 20 lakhs | 2% of Service Charge |
Waiver, Concession , Facilitates & Relie
1. Waiver of Fees & Interest.
If any person who have not paid tax and filled their annual income tax return , if takes his PAN and file his Income tax return for F.Y 2075-76, 2076-77 & 2077-78 with in Poush end 2079, then all the fees & interest there on shall be waived.
Similarly all the fees & interest before that period shall also be waived.
2. BPO, Software Programming and Cloud Computing
BPO, Software programming and cloud computing business earning and bringing foreign currency in Nepal in F.Y 209-80 will be charged tax @ 1% of taxable income.
3.Excise on Self Removal system
Where any person have registered themselves in excise on self removal system have not paid excise and submitted their return till 2078 Chaitra end, if pays the excise and 50% interest thereon with in Poush end 2079 then no additional penalty , special fee and delayed interest shall be waived off
4.Write off of Excisable Stock
Any person can write off their excisable product which are more than 15 years old by written notice to IRD with in Poush end 2079.
5.Income reduced of D01 & D02
Any taxpayer filling return under D01 & D02 forms if have declared low income till 2077-78 can declare the additional sales by paying 1.5% of additional sales amount with in Chaitra end 2079. All interest, fees , penalty and other tax needs not required to be paid.
6. Relief related to Vaccine Industry
Vat, excise and custom on imported machinery is fully waived off in the year 2079-80 for the Persons involved in the business of vaccine industry.
7.Relief for Liquid Oxygen
Vat, excise and custom on imported machinery is fully waived off in the year 2079-80 for the Persons involved in the business of liquid oxygen industry.
8.Relief for Transport Service Provider
Transportation of Goods Service Providers, who has received the rental income from the natural persons not registered under PAN in the FY 2076/77, withholds and pays the TDS as per proviso 8 of Section 88(1) of Income Tax Act, 2058 then such expenses shall be deductible while computing taxable income of FY 2076-77, even when no invoice of such transaction is available.
9.Agriculture Income
Any person(Natural person & entity) engaged in agriculture business, vegetable dehydrate, Cold storage shall be provided 100% tax rebate
10.Vaccine, Oxygen gas & Sanitary Pad Industry
Person engaged in vaccine, oxygen gas & sanitary pad industry is provided 5 years full tax rebate instead of 3 years then next 2 years 50% rebate.
11.Rebate to Tax Payer affected by COVID-19
| S. No | Tax Payers | Tax Rebate |
1 | Tax Payer U/s 4(4) | 90% |
| 2 | Tax Payer U/s 4(4ka) | 75% |
| 3 | Other Taxpayer up to 1 Crore | 50% |
4* | Hotel, Trekking, Travel, cinema Industry, Party Place transportation including air transport having business more than 1 crore | 99% |
* Loss of F.Y 2076-77 & 2077-78 of Tax payer mentioned in 4 can be carried forward for additional 3 years.
12.Export Income
Any manufacturing person who is engaged in export shall be provided 50% additional rebate( earlier it was 35%)
13. Relief to Joint Venture
If any joint venture registered in VAT who have not submitted their vat return till 2078 Chaitra end , if submits their vat return along with vat amount and 50% of interest with in Poush end 2079, then penalty , special fees and remaining interest shall be waived.
14.Relief on renewal of Private firm & companies
If the Private Firms established under Private Firm Registration Act, 2014 or Company registered under Companies Act 2063 that have not submitted the annual returns and/or not renewed its registration up to FY 2076-77 submits up to date annual returns and fees & penalty of 5 % then the remaining penalty shall be waived.
Tax Rate for Natural Person
| 1. Individual (No Change) | 2079-80 | 2078-79 | ||||||||||||||||||||||||||||||||||
| Amount | Tax Rate | Amount | Tax Rate | |||||||||||||||||||||||||||||||||
| First slab | 500,000.00 | 1% | 400,000.00 | 1% | ||||||||||||||||||||||||||||||||
| Next | 200,000.00 | 10% | 100,000.00 | 10% | ||||||||||||||||||||||||||||||||
| Next | 300,000.00 | 20% | 200,000.00 | 20% | ||||||||||||||||||||||||||||||||
| Next | 1,000,000.00 | 30% | 1,300,000.00 | 30% | ||||||||||||||||||||||||||||||||
| Balance exceeding | 2,000,000.00 | 36% | 2,000,000.00 | 36% | ||||||||||||||||||||||||||||||||
| 1.Couple (No Change) | 2079-80 | 2078-79 | ||||||||||||||||||||||||||||||||||
| Amount | Tax Rate | Amount | Tax Rate | |||||||||||||||||||||||||||||||||
| First slab | 600,000.00 | 1% | 450,000.00 | 1% | ||||||||||||||||||||||||||||||||
| Next | 200,000.00 | 10% | 100,000.00 | 10% | ||||||||||||||||||||||||||||||||
| Next | 300,000.00 | 20% | 200,000.00 | 20% | ||||||||||||||||||||||||||||||||
| Next | 9,00,000.00 | 30% | 1,250,000.00 | 30% | ||||||||||||||||||||||||||||||||
| Balance exceeding | 2,000,000.00 | 36% | 2,000,000.00 | 36% | ||||||||||||||||||||||||||||||||
Tax Rate for Entity
| ||||||||||||||||||||||||||||||||||||
| 8 | Entity engaged in Petroleum business under Nepal Petroleum Act , 2010 | 30% | 30% |
| 9 | Merchant Banks, Telecommunication and Internet Services Industry, Money Transfer Capital Market, Commodity Future Market, Securities Brokers and Companies involved in securities business | 30% | 30% |
| 10 | Co-operative Institutions registered under Co-operative Act, 2074 (Except Tax Exempt Transactions under Section 11 (2)) -Operating in Municipality Area -Operating in Sub-Metropolitan Area -Operating in Metropolitan Area | 7.5% 10% 15% | 5% 7% 10% |
Effective Tax Rate after application of Sec 11
| Entities | 2079-80 | 2078-79 |
| Special Industries (Manufacturing, Forest, Agriculture and Mining Industries; except Liquor, Cigarette, Khaini, Guthka and Pan Parag as defined in Section 11) (Tax rate after availing rebate u/s 11) | 20% | 20% |
| Entities operating Tram, Trolley Bus , Rope way, Cable Car, Over Bridge | 15% | 15% |
| Entities operating Road ,Bridge, Underpass, Tunnel, Airport | 12.50% | 12.50% |
| Entities wholly engaged in the projects conducted to build public infrastructure under Build, Operate and Transfer model (BOT) to GON & in Power Generation, Transmission or Distribution Sector. | 20% | 20% |
| Export Income -Manufacturing Special Industries -Non-Manufacturing Special Industries -Manufacturing Industries(Non Special) Other Export | -8% -16% -12% -20% | -10.4% -16% -15.6% -20% |
| Special Industries (Manufacturing, Forest, Agriculture and Mining Industries; except Liquor, Cigarette, Khaini, Guthka and Pan Parag as defined in Section 11) (Tax rate after availing rebate u/s 11) – For slab up to 20% – For 30% Slab – For 36% Slab | -20% -20% -24% | -20% -20% -24% |
| Export Income Manufacturing Special Industries- For slab up to 20% – For 30% Slab – For 36% Slab Non Manufacturing – For slab up to 20% | 7.5% 7.5% 9.0% 15% 15% 18% | 9.75% 9.75% 11.70% 15% 15% 18% |
Tax Rate for Small Taxpayer U/s 4(4)
Applicability
- The person has income from source in Nepal only
- The person has not opt for tax credit u/s 51 and 93
- The person has profit unto Rs 300 thousands and turnover up to 3 Million
- The Person has opted to tax under presumptive Basis
- The Person is not registered in VAT.
Tax Rate
| S. No | Location | Effective Tax Rate |
| 1 | Metropolitan or Sub Metropolitan | 75% of 7500=Rs 1875 |
| 2 | Municipality | 75% of 4000=Rs 1000 |
| 3 | Other Area | 75% of 2500=Rs 625 |
Tax Rate for Small Taxpayer U/s 4(4ka)
| S. No | Tax Payers | Effective Tax Rate |
| 1 | Person conducting transaction with up to 3% value addition or commission including gas, Cigarette -3 Million to 5 Million -5 Million to 10 Million | 0.125% 0.15% |
| 2 | Person other than specified above in S.N 1 -3 Million to 5 Million -5 Million to 10 Million | 0.5% 0.4% |
| 3 | Service Provider | 1% |
Tax Rate for Taxpayer Engaged in Public Transportation U/s 1(13)
| S. No | Taxpayer | Vehicle Type | Rate /Vehicle |
| 1 | Resident Natural Person is engaged in business of Public Vehicle | 1. Car, Jeep, Van and Micro Bus | |
| Up to 1300CC | 4,000.00 | ||
| From 1301 CC to 2000 CC | 4,500.00 | ||
| From 2001 CC to 2900 CC | 5,000.00 | ||
| From 2901 CC to 4000 CC | 6,000.00 | ||
| Above 4001 CC | 7,000.00 | ||
| 2.Mini Truck, Mini Bus & Water tanker | 6,000.00 | ||
| 3. Mini Tipper | 7,000.00 | ||
| 4. Truck & Bus | 8,000.00 | ||
| 5. Dozers, Excavator, Loader, Roller, Crane & like such equipment | 12,000.00 | ||
| 6. Oil tanker, Gas Bullet and tripper | 12,000.00 | ||
| 7. Tractor | 2,000.00 | ||
| 8. Power tiller | 1,500.00 | ||
| 9. Auto Rickshaw, Three wheeler, Tempo | 2,000.00 |
TDS Rate
| S. No | Nature of Income | 2079-80 | 2078-79 |
| 1 | Interest income from deposit up to Rs 10000 under ‘Micro Finance Program’, ‘Rural Development Bank’, ‘Postal Saving Bank’ & Co-Operative (u/s-11(2ka) in Village Municipality areas | 0% | 0% |
| 2 | Wind fall gains- General | 25% | 25% |
| 3 | Wind fall gains from Literature, Arts, Culture, Sports, Journalism, Science & Technology and Public administration up to Rs. 5 Lakhs | 0% | 0% |
| 4 | Payment of rent by resident person having source in Nepal, However no TDS on payment of rent to natural person. | 10% | 10% |
| 5 | Profit and Gain from Transaction of commodity future market | 10% | 10% |
| 6 | Profit and Gain from Disposal of Shares: | ||
| In case of Natural Resident Person | |||
| – Listed Shares held for more than 365 days | 5% | 5% | |
| – Listed Shares held for 365 days or less | 8% | 5% | |
| – Non Listed Share | 10% | 10% | |
| Others | |||
| Listed Share | 25% | 25% | |
| Non Listed Share | 25% | 25% |
| 7 | Dividend paid by the resident entity | ||
| Paid to resident person | 5% | 5% | |
| Paid to Non resident person | 5% | 5% | |
| 8 | Gain in investment insurance | 5% | 5% |
| 9 | On payment of gain from unapproved retirement fund | 5% | 5% |
| 10 | On payment of gain from approved retirement fund | 5% | 5% |
| 11 | On payment of interest or similar type having source in Nepal to natural person [ not involved in any business activity by Resident Bank, financial institutions or debenture issuing entity, or listed company | 5% | 5% |
| 12 | Payment for articles published in newspaper | 1.5% | 0% |
| 13 | Interest payment to Resident bank, other financial institutions | 0% | 0% |
| 14 | Interregional interchange fee paid to credit card issuing bank | 0% | 0% |
| 15 | Interest or fees paid by Government of Nepal under bilateral agreement | 0% | 0% |
| 16 | On payment of general insurance premium to resident insurance company | 0% | 0% |
| 17 | On payment of premium to non-resident insurance company | 2% | 2% |
| 18 | Contract payment exceeding Rs 50000 for a single contract within 10 days. | 2% | 2% |
| 19 | Interest & Dividend paid to Mutual Fund | 0% | 0% |
| 20 | Payment of consultancy fee: – to resident person against VAT invoice – to resident person against non VAT invoice | 1.5% 15% | 1.5% 15% |
| 21 | Payment on contract to Non Resident Person | 5% | 5% |
| 22 | Payment for the freight to transportation service or Renting of Transportation vehicle -Vat Registered -Non Vat Registered | 2.5% 2.5% | 1.5% 2.5% |
| 23 | Vehicle Rent | 10% | 10% |
| 24 | Payment made against question setting, answer evaluation | ||
| 25 | Payment to Non Resident Company against Commission paid for Reinsurance | 15% | 15% |
| 26 | Payment made to Consumer Committee | 2% | 2% |
| 27 | Commercial Import of Buffalo, Goat, Sheep, Fresh & Frozen Fish, Fruits, | 5% | 5% |
| 28 | On Import of Meat, Milk Product, Egg, Honey, Millet, Buckwheat, Junelo, Rice, Wheat Flour, Meslin Flour, Other Flours, Herbs, Sugarcane, Herbal products | 3% | 3% |
| 29 | Foreign Currency Exchange service by resident bank for students going abroad for study making payment for language exam and standardized test | 15% (TCS) | 15% (TCS) |
| 30 | Interest paid by resident bank and financial institution to foreign bank or financial institution | 10% | 15% |
| 31 | Payment received by a person in foreign currency for providing software or other electronic services of similar nature outside Nepal. | 1% (TCS) | 0% |
Provision Related to TDS
General Provisions:
- Withholding Tax needs to be deposited along with TDS Return with IRO within 25 days from the end of month.
- Withholding Tax Certificate should be issued to the person from whom tax has been deducted based on the TDS Return filed with IRO to get the credit for such tax.
- In case of delayed payment of WHT, the applicable rate of Interest is 15% per annum. Penalty of 2.5% p.a. on TDS amount will be levied for no submission of e-TDS return within prescribed time limit. Penalty u/s 117 and 120 shall be imposed on Non-payment of TDS and non-submission of TDS Return.
No TDS is required to be deducted on the following:
- Remuneration to the writer of articles published in Newspaper & Magazines.
- Inter-Regional interchange charges paid to a bank issuing Credit Cards.
- Interest or fee paid by GoN, under an agreement, to Foreign Govt. or an International Organization. (To which Nepal is a party)
- Interest and Dividend paid to a Mutual Fund
- Payment of Interest to a Resident Bank or Other Resident Financial Institution.
- Payments that are exempt from tax
- Life/General Insurance premium.
- Incentive amount for consumer who have paid their bill through electronic payment instruments like payment card, e-money(wallet), mobile banking.
- Interest paid or received between cooperative banks and cooperative societies.
Business Exemption/Concession & Facilities
| Section | Particulars | 2079-80 | 2078-79 |
| 11 (3) (C) | Special Industry & Tourism Industry (except Casino) with Capital Investment of Rs. 1 billion & Direct Employment of 500 persons during the whole year -For the first 5 years – For the subsequent 3 years | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate |
| 11 (3) (C) | if existing special industry & Tourism Industry (except Casino) increases its installed capacity by 25% or more to reach the capital of Rs. 2 billion (PY 1 Billion) and 300 persons (PY 500 persons) during the whole year. -For the first 5 years – Profit earned on the Increased Capacity – For the subsequent 3 years | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate |
| 11 (3A) (A) | Industries established in Special Economic Zone Situated in Mountainous Districts and Hilly Districts prescribed by GoN. -For the first 10 years -Subsequent Period after 10 years | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate |
| 11 (3A) (B) | Industries established in Special Economic Zone Situated in Other Regions -For the first 5 years -Subsequent Period after 5 years | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate |
| 11 (3A) (C) | Dividend distributed by industries in Special Economic Zone -For the first 5 years -Subsequent Period after 5 years | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate |
| 11 (3A) (D) | Income from Foreign Technology, Management Service Fee & Royalty of Foreign Investor in Special Economic Zone | 50% of Applicable Rate | 50% of Applicable Rate |
| 11 (3B) | Persons involved in Exploration & Extraction of Petroleum, Natural Gases, Fuel & Mining – Will start its operation within Chaitra end 2080 BS -For the first 7 years -Subsequent Period after 3 years | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate |
| 11 (3C) | IT industry established within IT Park, Biotech Park, Zoological Park, Geological Park and Technology Park as specified in the Gazette | 50% of Applicable Rate | 50% of Applicable Rate |
| 11 (3D) | Hydropower Projects, Solar Energy Projects, Waste-To-Energy and Wind Turbine Projects that have commercially started generation of electricity by Chaitra, 2083 -For the first 10 years -Subsequent Period after 5 years | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate |
| 11 (3E) | Tax exemption on income earned from export in any income year from a source in Nepal shall be as follows: -Natural Person whose Tax is chargeable @ 20% – Natural Person whose Tax is chargeable @ 30% -Entity -Manufacturing Industry – [In addition to above (a) & (b)] | Rebate as follows -25% Applicable Tax -50% Applicable Tax -20% Applicable Tax -35% Applicable Tax | Rebate as follows -25% Applicable Tax -50% Applicable Tax -20% Applicable Tax -25% Applicable Tax |
| 11 (3F) | Entity Engaged in – operation of Trolley, Tram, Bus, Cable car, Ropeway – Road, Bridge, Tunnel, Railways, Airport | Rebate as follows -40% of Applicable Rate -50% of Applicable Rate | Rebate as follows -40% of Applicable Rate -50% of Applicable Rate |
| 11 (3G) | Manufacturing/Tourism/Production, Distribution & Transmission of Hydro-Power/Entities if listed in stock exchange | 15% of Applicable Tax | 15% of Applicable Tax |
| 11 (3H) | Manufacturers of – Brandy based on Fruits, Cider & Wine in Remote & Undeveloped Area .-For the first 10 years for Remote Area – For the first 10 years – Undeveloped Area | Rebate as follows -40% of Applicable Rate -25% of Applicable Rate | Rebate as follows -40% of Applicable Rate -25% of Applicable Rate |
| 11 (3I) | Royalty Income earned from Export of Intellectual Assets | 25% of Applicable Tax | 25% of Applicable Tax |
| 11 (3J) | Income earned from the Disposal of Intellectual Assets | 50% of Applicable Tax | 50% of Applicable Tax |
| 11 (3K) | Tourism Industry or Aviation Industry operating International Flights with Capital of 2 Billion -For the first 5 years -Subsequent 3 years | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate |
| 11 (3L) | Special Industry, Industry based in Agriculture & Tourism Sector which capitalizes its profit (i.e. Issues Bonus Shares) for the purpose of capacity enhancement | 100 % of Applicable Tax | 100 % of Applicable Tax |
| 11 (3M) | Conversion of Private to Public Company (Paid up capital > Rs. 500 Million) except conversion u/s 12 of companies act for first 3 years from the date of conversion | 10 % of Applicable Tax | 10 % of Applicable Tax |
| 11 (3N) | Tea Production and Processing, Dairy Industry & Textile Industry | 50 % of Applicable Tax | 50 % of Applicable Tax |
| 11(3O) | Community Hospital | 20 % of Applicable Tax | 20 % of Applicable Tax |
| 11 (3P) | Small Scale Industry (Laghu Udhyam) having Fixed capital up to Rs. 5 lacs (except land and building), Total Annual Turnover below Rs. 50 Lacs, Employing up to 9 employees (including proprietor – For the first 7 years – From Date of Commencement – Male – For the first 10 years – From Date of Commencement – Female | Rebate as follows -100% of Applicable Rate -100% of Applicable Rate | Rebate as follows -100% of Applicable Rate -100% of Applicable Rate |
| 11 (3Q) | Entities engaged in Public Infrastructure Development operating under Build/Operate/Transfer model & Development of Power Houses engaging in Generation & Transmission. | 20 % of Applicable Tax | 20 % of Applicable Tax |
| 11 (3R) | Special Industry established or relocated to Industrial Zone/Industrial Village – For the first 3 years – For the next 5 years after end of 3 years | Rebate as follows -50% of Applicable Rate -25% of Applicable Rate | NA |
| 11 (3S) | Industry manufacturing raw materials or subsidiary raw materials locally and sells such materials to special industries | 20 % of Applicable Tax | NA |
| 11 (3T) | Startups using revolutionary knowledge, thought, skill, technology, behavior and technique which have been prescribed by the IRD and have turnover up to one crore rupees. For 1st 5 years from commencement | 100 % of Applicable Tax | NA |
| 11 (3U) | Relocation of Special Industry operating in Kathmandu Valley to outside the valley – For the first 3 years – For the next 2 years after end of 3 years | Rebate as follows -100% of Applicable Rate -50% of Applicable Rate | NA |
| 11 (3V) | Industry producing goods using only ‘Used Materials’ as raw materials that has direct impact on the environment – For the first 3 years – For the next 2 years after end of 3 years | Rebate as follows -50% of Applicable Rate -25% of Applicable Rate | NA |
| Special industry operating in hilly area Karnali province providing direct employment to 100 Nepali national | 100% tax exemption for 15 years |
Advance Income Tax
| Due Date | Payable Amount | |
| 2079-80 | 2078-79 | |
| Up to Poush End | 40% of estimated Tax | 40% of estimated Tax |
| Up to Chaitra End | 70% of estimated Tax | 70% of estimated Tax |
| Up to Ashad End | 100% of estimated Tax | 100% of estimated Tax |
- Where an installment of tax paid by a person is less than 90% of tax payable, the person shall be liable to pay an interest @ 15% p.a. for each month & part of month from the date of first installment on the amount to the excess of 90% of the installment that would have been paid over the installment paid.
- The presumptive tax-payers need not require paying any advance tax as above. If the tax amount is less than Rs 7,500 no installment is required to be paid.
- Penalty of Rs. 5000 or 0.01% of the assessable income whichever is higher, shall be imposed for non submission of estimated tax return.
Review & Appeal
| Administrative Review Provision has been made to file an application in the department for the administrative review in the cases related to income tax and value added tax. Cash deposit of 1/4th of disputed tax and 100% of undisputed tax payable is required. Arrangement has been made to decide upon the application within 60 days and notify the taxpayer. |
Appeal to Revenue Tribunal
|
Other
- Where an installment of tax paid by a person is less than 90% of tax payable, the person shall be liable to pay an interest @ 15% p.a. for each month & part of month from the date of first installment on the amount to the excess of 90% of the installment that would have been paid over the installment paid.
- The presumptive tax-payers need not require paying any advance tax as above. If the tax amount is less than Rs 7,500 no installment is required to be paid.
- Penalty of Rs. 5000 or 0.01% of the assessable income whichever is higher, shall be imposed for non submission of estimated tax return.
Other Amendments In Direct Tax
| Sec | Particulars | 2079-80 | 2078-79 |
| 2 R | NBCA | Explanation: For the purpose of this clause, “private building” means building, land occupied by the building and the additional equivalent land occupied by the such building or one Ropani of land whichever is lesser. | Explanation: For the purpose of this clause, “private building” means building and the land occupied by the building or one Ropani of land whichever is lesser. |
| 47A | Special provision on disposal as a result of merger of business of BFI’s & Insurance Co’s | Entity willing to be amalgamated shall provide letter of intent for amalgamation to the IRD not later than the end of Ashad 2079. The entity shall complete the procedure not later than the end of Ashad 2080. | Entity willing to be amalgamated shall provide letter of intent for amalgamation to the IRD not later than the end of Ashad 2078. The entity shall complete the procedure not later than the end of Ashad 2079. |
| 75(2) | Circular | The Department shall make available the circular issued pursuant to Sub-section (1) on the website of the department or in the national newspaper or other electronic medium. | The Department shall make available the circular issued pursuant to subsection (1) |
| 79(1) | Service of Documents | Where it is sent to the fax at the address, email or such other electronic medium of that person | Where it is sent to the email or such other electronic medium of that person |