2) This Act shall come into force throughout Nepal and also apply to the resident person in any place outside the Nepal.

3) This Act shall come into force immediately.

(१) प्रचलित कानून बमोजिम स्थापित संगठित संस्था ,
(२) कुनै असंगठित संघ, समिति, संस्था वा समाज वा दर्ता गरिएका वा नगरिएका एकलौटी फर्म र साझेदारी बाहेकको व्यक्तिहरुको समूह वा ट्रस्ट,
(३) बीस वा सोभन्दा बढी साझे दारहरु भई प्रचलित कानून बमोजिम दर्ता भए वा नभएको साझेदारी फर्म, अवकाश कोष, सहकारी संस्था, युनिट ट्रप्ट, संयुक्त उद्यम,
(४) विदेशी कम्पनी,
(५) महानिर्देशकले तोकेको अन्य कुनै विदेशी संस्था ।
(ढ) “कर” भन्नाले यस ऐन बमोजिम लाग्ने कर सम्झनु पर्छ र सो शब्दले देहाय बमोजिमका भुक्तानीलाई समेत जनाउँछ ः–
(१) कर बक्यौता रहेको व्यक्तिको सम्पत्तिका सम्बन्धमा दाबी र लिलाम बिक्री बापत बिभागले गरेका दफा १०४ को उपदफा (८) को खण्ड (क) मा उल्लिखित खर्चहरु,
(२) अग्रिम कर कट्टी गर्ने व्यक्ति वा कर कट्टी हुने व्यक्तिले दफा ९० बमोजिम बुझाउनु पर्ने रकम वा किस्ताबन्दीमा दाखिल गर्ने व्यक्तिले दफा ९४ बमोजिम बुझाउनु पर्ने रकम वा दफा ९९, १०० र १०१ बमोजिम कर निर्धारण भए अनुसार बुझाउनु पर्ने रकम,
(३) दफा १०७ को उपदफा (२), दफा १०८ को उपदफा (३) वा (४), दफा १०९ को उपदफा (१) र दफा ११० को उपदफा 
(१) बमोजिम तेस्रो पक्षको कर दायित्वको सम्बन्धमा विभागलाई बुझाउनु पर्ने रकम
(४) शुल्क तथा ब्याज बापत बुझाउनु पर्ने परिच्छेद – २२ बमोजिमको रकम,र
(५) बिभागले आदेश दिए बमोजिम दाखिला गर्नु पर्ने दफा १२९ बमोजिमको जरिबाना रकम ।
(ण) “कर कट्टी हुने व्यक्ति” भन्नाले रोजगारी, लगानी प्रतिफल, सेवा शुल्क तथा ठेक्का वा करार समेतको भुक्तानी गर्दा परिच्छेद–१७ बमोजिम कर कट्टी गरी भुक्तानी प्राप्त गर्ने वा भुक्तानी प्राप्त गर्ने अधिकार भएको व्यक्ति सम्झनु पर्छ ।
(त) “कर निर्धारण” भन्नाले यस ऐन बमोजिम गरिने कर निर्धारण सम्झनु पर्छ र सो शव्दले दफा १२२ बमोजिम गरिएको शुल्क तथा ब्याजको निर्धारण समेतलाई जनाउँछ ।
तर यस शब्दले दफा १०१ बमोजिम संशोधित कर निर्धारणले प्रतिस्थापन गरेको साबिकको कर निर्धारणलाई जनाउने छैन।
(थ) “गैर बासिन्दा व्यक्ति” भन्नाले बासिन्दा व्यक्ति बाहेकको व्यक्ति सम्झनु पर्छ ।
(द) “गैर व्यावसायिक करयोग्य सम्पत्ति” भन्नाले देहायका सम्पत्ति बाहेकका जग्गा तथा निजि भवन कुनै निकायमा रहेको हित वा सुरक्षण सम्झनु पर्छ ः–
(१) व्यावसायिक सम्पत्ति, ह्रासयोग्य सम्पत्ति वा व्यापारिक मौज्दात,
(२) कुनै प्राकृतिक व्यक्तिको निम्न अवस्थाको निजी भवन,–
(क) अविच्छिन्न तीन वर्ष वा सोभन्दा बढी अवधि स्वाभित्वमा रहेको, र 
(ख) सो व्यक्तिले अविच्छिन्न वा पटक पटक गरी कुल तीनवर्ष वा सोभन्दा बढी बसोबास गरेको ।
(३) कुनै प्राकृतिक व्यक्तिको एक करोड रुपैयाँभन्दा कम मूल्यमा निसर्ग गरेको जग्गा तथा निजी भवन, वा
(४) तीन पुस्ताभित्र भएको खरिद बिक्रीबाहेक अन्य किसिमले हस्ततान्तरण गरी निसर्ग गरेको सम्पत्ति ।
(ध) “छुट पाउने संस्था” भन्नाले देहायका निकाय सम्झनु पर्छ ः– 
(१) नाफा नकमाउने उद्देश्यले स्थापना भएका सार्वजनिक प्राकृतिक सामाजिक, धार्मिक, शैक्षिक वा परोपकारी संस्था,
(२) सामाजिक वा खेलकूद सम्बन्धी सुविधा प्र्रवद्र्धन गर्ने उद्देश्यले सो संस्था वा त्यसका सदस्यहरुले लाभ नलिने गरी गठन भएको अव्यवसायी (एमेच्योर) खेलकुद संस्था,
(३) निर्वाचन आयोगमा दर्ता भएको राजनीतिक दल,
(४) गाउँ विकास समिति , नगरपालिका वा जिल्ला विकास समिति,
(५) नेपाल राष्ट्र बैङ्क,
(६) श्री ५ को सरकार,
(७) दफा ७६ बमोजिम जारी भएको पूर्वादेशद्धारा कर छूट उपभोग गर्न पाएको तोकिए बमोजिमको निकाय,

तर छुट पाउने संस्थाको उद्देश्य अनुसार कार्य सम्पन्न हुँदा वा कुनै व्यक्तिद्धारा सो संस्थालाई प्रदान गरिएका सम्पत्ति वा सेवा बापतको कुनै भुत्तानी गर्दा बाहेक सो संस्थाको सम्पत्ति र सो संस्थाले प्राप्त गरेको रकमबाट कुनै व्यक्तिले कुनै फाइदा प्राप्त गरेको भए कर छूट हुने छैन ।
(न) “ट्रप्ट” भन्नाले ट्रप्टीले सम्पत्ति धारण गर्ने प्रबन्ध सम्झनु पर्छ ।
तर यस शब्दले साझेदारी , संगठित संस्था वा खण्ड (ड) को उपखण्ड (३) बमोजिम उल्लिखित संस्थालाई जनाउने छैन ।
(प) “ट्रष्टी” भन्नाले एक्लै वा अन्य प्राकृतिक व्यक्ति, गुठी वा अन्य संगठित संस्थासंग मिली संयुक्तरुपमा सम्पत्ति अमानतको रुपमा राख्ने प्राकृतिक व्यक्ति, गुठी वा अन्य संगठित संस्था सम्झनु पर्छ र सो शब्दले देहायको व्यक्ति समेतलाई जनाउँछ ः–
(१) मृतक व्यक्तिको जायजेथाको सञ्चालनकर्ता वा प्रशासक,
(२) लिक्विडटर, प्रापक वा ट्रष्टी,
(३) निजी वा आधिकारिक हैसियतमा असक्षम व्यक्तिको सम्पत्तिको संरक्षक, निर्देशन, नियन्त्रण वा व्यवस्थापन गर्ने कुनै व्यक्ति,
(४) निजी प्रतिष्ठान वा यस्तै प्रतिष्ठान अन्तर्गत सम्पत्तिको व्यवस्थापन गर्ने कुनै व्यक्ति, र 
(५) उपखण्ड (१), (२), (३) र (४) मा उल्लिखित व्यक्ति सरहको जस्तै स्थितिमा रहेको अन्य कुनै व्यक्ति ।
(फ) “दीर्घकालीन करार” भन्नाले करारको बहाली अवधि बाह्र महिनाभन्दा बढी भएको दफा २६ बमोजिमको करार सम्झनु पर्छ ।
 (ब) “नातेदार” भन्नाले प्राकृतिक व्यक्तिको पति, पत्नि, छोरा, छोरी (धर्मपुत्र, धर्मपुत्री समेत), बावु, आमा, बाजे, बज्यै, दाजु, भाई, भाउजु, बुहारी, दिदी, बहिनी, सासु, ससुरा, साला, जेठान, साली, जेठीसासु, काका, काकी, भतिजा, भतिजी, नाती र नातिनी सम्झनु पर्छ ।
(भ)  “निकाय (इन्टिटी)” भन्नाले देहायका संस्था वा संगठन सम्झनु पर्छ ः–
(१) साझेदारी, ट्रष्ट वा कम्पनी,
(२) गाउँ विकास समिति, नगरपालिका वा जिल्ला विकास समिति,
(३) श्री ५ को सरकार,
(४) कुनै विदेशी सरकार वा सो सरकार अन्तर्गतका प्रान्तीय वा स्थानीय सरकार वा कुनै सन्धीद्धारा स्थापना भएको सार्वजनिक अन्तर्राष्ट्रिय संगठन , वा 
(५) आफू बासिन्दा भएको मुलुकमा अवस्थित नरहेको उपखण्ड (१),(२) र (३) मा उल्लेख भएको संस्था वा संगठनको स्थायी संस्थापन ।
(म) “निकायमा रहेको हित” भन्नाले कुनै निकायको आय वा पूँजी प्राप्त गर्ने सांयोगिक (कन्टिन्जेन्ट) अधिकार समेतको अधिकार सम्झनु पर्छ 
(य) “निसर्ग (डिस्पोजल)” भन्नाले दफा ४० मा उल्लेख भए बमोजिम कुनै सम्पत्ति वा दायित्वको बिक्री वा हस्तान्तरण समेतको निसर्ग सम्झनु पर्छ ।
(र) “निहित स्वामित्व” भन्नाले देहायको स्वामित्व सम्झनु पर्छ ः–
(१) कुनै निकायको सम्बन्धमा कुनै प्राकृतिक व्यक्ति वा प्राकृतिक व्यक्तिको हित नरहेको निकायले सो निकायमा प्रत्यक्ष वा अप्रत्यक्ष रुपमा एक वा बढी मध्यस्थ निकायहरुद्धारा राखेको हितका आधारमा सिर्जित स्वामित्व, वा 
(२) कुनै निकायको स्वामित्व रहेको सम्पत्तिको सम्बन्धमा सो निकायमा निहित स्वामित्व रहेका व्यक्तिहरुको स्वामित्वको समानुपातको आधारमा निर्धारण भएको सम्पत्तिको स्वामित्व ।
(ल) “पट्टा” भन्नाले कुनै व्यक्तिले अर्काे व्यक्तिको नगदी सम्पत्ति बाहेकको सम्पत्ति प्रयोग गर्ने अस्थायी अधिकार सम्झनु पर्छ र सो शब्दले इजाजतपत्र, भाडा सम्झौता, छनौट, रोयल्टी सम्झौता वा वहालवालाको हक समेतलाई जनाउँछ ।
(व) “प्राकृतिक व्यक्ति” भन्नाले प्राकृतिक व्यक्ति विशेष सम्झनु पर्छ र यस ऐनको प्रयोजनको लागि सो शब्दले दर्ता भई वा नभई प्राकृतिक व्यक्तिको स्वामित्वमा रहेको एकलौटी फर्म तथा एउटै प्राकृतिक व्यक्तिको रुपमा मानिने गरी दफा ५० बमोजिम छनौट भएको दम्पत्ति समेतलाई जनाउँछ ।
(श) “प्राकृतिक स्रोत बापतको भुक्तानी” भन्नाले देहायको कुनै भुक्तानीको रकम सम्झनु पर्छ ः–
(१) जमिनबाट पानी, खनिज पदार्थ वा अन्य जीवित वा निर्जीव स्रोत निकाले बापत प्राप्त गरेको रकम, वा 
(२) जमिनबाट निकालिएको प्राकृतिक स्रोत र खनिज पदार्थको जीवित वा निर्जीव स्रोतको परिमाण वा मूल्यका आधारबाट समग्र वा आंशिक रुपमा गणना गरिएको रकम ।
(ष) “बजार मूल्य” भन्नाले कुनै सम्पत्ति वा सेवाका सम्बन्धमा असम्बन्धित व्यक्तिहरुबीच सामान्य बजार व्यवहारको सिलसिलामा सेवा वा सम्पत्तिको सामान्य कारोबार मूल्य सम्झनु पर्छ ।
(स) “भाडा” भन्नाले घर वहाल समेतका मूर्त सम्त्तिको पट्टा बापत प्राप्त गरिएको प्रिमियम र सो पट्टा प्रदान गरे बापत प्राप्त गरेको भुक्तानी सम्झनु पर्छ ।
(ज्ञ) “रोजगारी” भन्नाले कुनै पनि किसिमको विगत, वर्तमान वा भावी रोजगारी सम्झनु पर्छ ।
(कक) “राउल्टी” भन्नाले अमूर्त सम्पत्तिको पट्टा अन्तर्गत गरिएको कुनै भुक्तानी सम्झनु पर्छ र सो शब्दले देहायका उद्देश्यका लागि गरिने कुनै भुक्तानी समेतलाई जनाउँछ ः–
(१) प्रतिलिपि अधिकार, पेटेन्ट, डिजाइन, मोडेल, योजना, गोप्य सूत्र वा प्रक्रिया वा टे«डमार्कको प्रयोग वा प्रयोग गर्ने अधिकार राख्ने,

(२) प्रविधिको ज्ञान प्रदान गर्ने,
(३) चलचित्रजन्य फिल्म, भिडियो टेप, ध्वनी रिकर्डिङ वा कुनै अन्य यस्तै माध्यमको प्रयोग वा प्रयोग गर्ने अधिकार र औद्योगिक, व्यापारिक वा वैज्ञानिक अनुभव प्रदान गर्ने,
(४) उपखण्ड (१), (२) वा (३) बमोजिमका कुरामा सहायक हुने किसिमले कुनै सहयोग प्रदान गर्ने ,वा
(५) उपखण्ड (१), (२), (३) वा (४) बमोजिमका कुराका सम्बन्धमा पूर्ण वा आंशिक बन्देज मान्ने ।
तर यस शब्दले प्राकृतिक स्रोतबापतको भुक्तानीलाई जनाउने छैन ।
(कख) “लगनी” भन्नाले देहाय बमोजिम बाहेक एकीकृत तवरमा प्रयोग गरिएका उस्तै प्रकृतिका एक वा बढी सम्पत्ति राख्ने वा त्यस्तो सम्पत्ति लगानी गर्ने कार्य सम्झनु पर्छ ः–
(१) सम्पत्तिमा स्वामित्व राख्ने व्यक्तिबाट निजी प्रयोगमा ल्याइएको गैर व्यावसायिक करयोग्य सम्पत्ति बाहेकका सम्पत्ति राख्ने वा सो सम्पत्तिमा रकम लगाउने कार्य, वा 
(२) रोजगारी वा व्यवसाय ।
(कग) “लगानी बिमा” भन्नाले देहायका कुनै बिमा सम्झनु पर्छ ः–
(१) बिमित व्यक्ति वा बिमित व्यक्तिको सम्बद्ध व्यक्तिको मृत्यु सम्बन्धी घटनाका हकमा गरिएकाृे बिमा,
(२) बिमित व्यक्ति वा निजको सम्बद्ध व्यक्तिको व्यक्तिगत चोटपटक वा कुनै खास तवरमा असक्षम हुने घटना सम्बन्धी बिमा,
तर बिमाको बिमा सम्झौता कम्तीमा पाँच वर्षसम्म वहाल रहने वा वहालीको समय सीमा नभएको र करारमा उल्लिखित विशेष परिस्थितिहरुमा बाहेक पाँच वर्षको अवधि भुक्तान हुनु अगावै बिमकबाट अन्त्य गर्न नसकिने गरी गरिएको हुनु पर्नेछ ।
(३) कुनै रकम वा श्रुङ्कलाबद्ध रकमहरु भ्विष्यमा बिमितलाई भुक्तानी हुने गरी गरिएको बिमा,
(४) उपखण्ड (१), (२) , वा (३) अन्तर्गतका बिमाको पुर्नबिमा, र 
 (५) उपखण्ड (४) मा उल्लिखित पुनर्बिमाको पुनर्बिमा ।
(कघ) “लाभांश” भन्नाले निकायबाट हुने वितरण सम्झनु पर्छ ।
(कङ) “बासिन्दा व्यक्ति” भन्नाले कुनै आय वर्षका सम्बन्धमा देहायका व्यक्ति सम्झनु पर्छ ः–
(१) प्राकृतिक व्यक्तिको सम्बन्धमा,
(क) सामान्य बसोबासको स्थान नेपालमा रहेको,
(ख) कुनै आय वर्षको अविच्छिन्न ३६५ दिनको अवधिमा १८३ दिन वा सोभन्दा बढी नेपालमा रहेको, वा
(ग) श्री ५ को सरकारबाट आय वर्षको कुनै समयमा विदेशमा खटाइएको ।
(२) साझेदारी फर्म,
(३) ट्रष्टको सम्बन्धमा त्यस्तो ट्रष्ट जुन, –
(क) नेपालमा स्थापना भएको,
(ख) ट्रष्टलाई ट्रष्टी आय वर्षमा बासिन्दा व्यक्ति भएको ,
(ग) ट्रष्टलाई आय वर्षमा बासिन्दा व्यक्ति वा निज संलग्न भएको व्यक्तिहरुको समूहले प्रत्यक्ष वा एक वा बढी मध्यस्थ निकाय (इन्टरपोज्ड इन्टिटी) हरुको माध्यमद्धारा नियन्त्रण गरेको ।
(४) कम्पनीको सम्बन्धमा त्यस्तो कम्पनी जुन, –
 (क) नेपालको कानून अन्तर्गत संस्थापित भएको,
(ख) कुनै आय वर्षमा नेपालमा सो कम्पनीको व्यवस्थापन प्रभावकारी गरेको ।
(५) गाउँ विकास समिति, नगरपालिका वा जिल्ला विकास समित,
(६) कुनै विदेशी सरकार र सो सरकार अन्तर्गतका प्रान्तीय र स्थानीय सरकारको त्यस्तो निकायको सम्बन्धमा जुन,–
(क) नेपालको कानूनअन्तर्गत स्थापित भएको , वा
(ख) कुनै आय वर्षमा नेपालमा त्यस्तो निकायको व्यवस्थापन प्रभावकारी रहेको ।
(७) कुनै सन्धि सम्झौता अन्तर्गत स्थापित संस्था वा निकाय, र
(८) गैर बासिन्दा व्यक्तिको नेपालमा रहेको विदेशी स्थायी संस्थापन ।
(कच) “व्यक्ति” भन्नाले प्राकृतिक व्यक्ति वा निकाय सम्झनु पर्छ ।
(कछ) व्यवस्थापक भन्नाले कुनै निकायको व्यवस्थापकीय निर्णयहरुगर्ने काममा संलग्न हुने व्यक्ति सम्झनु पर्छ र सो शब्दले कुनै ट्रष्टको ट्रष्टी र विदेशी स्थायी संस्थापनमा स्वागित्व भएको व्यक्ति समेतलाई जनाउँछ ।
(कज) “व्यवसाय” भन्नाले कुनै पनि प्रकारको उद्योग, व्यापार, पेशा वा यस्तै अन्य प्रकृतिका व्यावसायिक कारोबार सम्झनु पर्छ र सो शब्दले त्यस्तै प्रकारका विगत, वर्तमान वा भावी व्यवसायहरुलाई समेत जनाउँछ ।
तर यस शब्दले रोजगारीलाई जनाउने छैन ।
(कझ) “ब्याज” भन्नाले देहायका भुक्तानी वा लाभ सम्झनु पर्छ ः–
(१) सावाँ बाहेक क्रण दायित्व अन्तर्गतको भुक्तानी ,
(२) ऋण दायित्व अन्तर्गतको छूट, प्रमियम, अदलबदल भुक्तानी वा त्यस्तै भुक्तानीको माध्यमबाट प्राप्त गरिएको लाभ, र
(३) वार्षिक वृत्ति वा किस्ताबन्दी बिक्री अन्तर्गत सम्पत्ति प्राप्त गर्ने व्यक्तिबाट वा वित्तीय पट्टा अन्तर्गत कुनै सम्पत्तिको प्र्रयोग बापत कुनै व्यक्तिलाई गरिने भुक्तानीमध्य ब्याजको रुपमा लिइने दफा ३२ बमोजिमका रकमहरु ।
(कञ) “व्यापारिक मौज्दात” भन्नाले कुनै व्यक्तिको स्वामित्वमा रहेको निजद्धारा सञ्चालित नियमित व्यवसायको क्रममा बिक्री गरिएको वा गरिने सम्पत्ति, कार्य प्रगतिमा रहेको सम्पत्ति र सम्पत्तिमा समाविष्ट हुने सामग्रीहरुको मैज्दात सम्झनु पर्छ ।
(कट) “व्यावसायिक सम्पत्ति” भन्नाले कुनै व्यवसायमा प्रयोग गरिएको कुनै सम्पत्ति सम्झनु पर्छ ।
तर यस शब्दले व्यापारिक मौज्दात वा व्यवसायको ह्रासयोग्य सम्पत्तिलाई जनाउने छैन ।
(कठ) “वितरण” भन्नाले दफा ५३ मा उल्लेख भए बमोजिम कुनै निकायबाट हुने वितरण सम्झनु पर्छ ।
(कड) “विदेश पठाएको आय” भन्नाले गैर बासिन्दा व्यक्तिको नेपालस्थित दफा ६८ बमोजिमको विदेशी स्थायी संस्थापनले विदेश पठाउनु पर्ने आय बैङ्क मार्फत् विदेश पठाएको वा अन्य कुनै पनि तरिकाले भुक्तानी गरेको रकम सम्झनु पर्छ ।
(कढ) “विदेश आयकर ” भन्नाले कुनै विदेशी मुलुकले लगाएको दफा ६९ को उपदफा (८) मा उल्लिखित विदृशी आयकर सम्झनु पर्छ र सो शब्दले कुनै विदेशी मुलुकले लगाएको अन्तिम रुपमा कट्टी हुने कर समेतलाई जनाउँछ ।
(कण) “विदेशी स्थायी संस्थापन” भन्नाले खण्ड (भ) को उपखण्ड (४) बमोजिमको निकाय सम्झनु पर्छ ।
(कत) “विभाग” भन्नाले आन्तरिक राजस्व विभाग सम्झनु पर्छ ।
(कथ) “वैदेशिक मुद्रामा रहेको सम्पत्ति” भन्नाले नेपाली रुपैयाँ बाहेक अन्य विदेशी मुद्रामा रहेको सम्पत्ति सम्झनु पर्छ ।
(कद) “स्थायी संस्थापन” भन्नाले कुनै व्यक्तिले पूर्ण वा आंशिक रुपमा व्यवसाय सञ्चालन गर्ने स्थान सम्झनु पर्छ र सो शब्दले देहायका स्थान समेतलाई जनाउँछ ः–
(१) व्यवसाय सञ्चालन गर्ने सामान्य क्रममा स्वतन्त्र हैसियतले कार्य गर्ने साधारण एजेण्ट बाहेक कुुनै एजेण्ट मार्फत् कुनै व्यक्तिले पूर्ण वा आंशिक रुपमा व्यवसाय गर्ने स्थान,
(२) कुनै व्यक्तिको मुख्य उपकरण वा मुख्य मेशिनरी रहेको वा प्रयोग गरेको वा जडान गरेको स्थान,
(३) कुनै बाह्र महिनाको अवधिमा एकै पटक वा पटक पटक गरी नब्बे दिनभन्दा बढी कुनै व्यक्तिले कर्मचारी मार्फत् वा अन्य प्रकारले प्राविधिक, व्यावसायिक वा परामर्श सेवा प्रदान गरेको कुनै देशको एक वा एकभन्दा बढी स्थान वा 
(४) कुनै व्यक्तिले नब्बे दिन वा सोभन्दा बढी समयसम्म निर्माण गर्ने, जडान गर्ने वा स्थापना गर्ने आयोजनामा संलग्न रहेको स्थान तथा सो आयोजनाको सुपरिवेक्षण सम्बन्धी क्रियाकलापहरु सञ्चालन गरेको स्थान ।
(कध) सम्पत्ति भन्नाले कुनै पनि किसिमको मूर्त वा अमूर्त सम्पत्ति सम्झनु पर्छ र सो शब्दले मुद्रा, ख्याति, प्रविधि ज्ञान, जायजेथा कुनै व्यक्तिको विदेशी शाखामा रहेको स्वामित्व वा हित, आम्दानी गर्ने वा भविष्यमा आम्दानी प्राप्त गर्ने अधिकार र कुनै त्यस्तो सम्पत्तिको कुनै भाग समेतलाई जनाउँछ ।
(कन) “सम्बद्ध व्यक्ति” भन्नाले एक अर्काे व्यक्तिको मनसाय अनुसार काम गर्ने एक वा एकभन्दा बढी व्यक्ति वा त्यस्ता व्यक्तिहरुको समूह सम्झनु पर्छ र सो शब्दले देहायका व्यक्तिहरु समेतलाई जनाउँछ ः–
(१) प्राकृतिक व्यक्ति र सो व्यक्तिको नातेदार वा कुनै व्यक्ति वा सो व्यक्तिको साझेदार,
(२) विदेशी स्थायी संस्थापन र सो संस्थापनमा स्वामित्व भएको व्यक्ति र 
(३) कुनै निकाय आफै वा आफूसंग सम्बन्धित अन्य व्यक्ति वा सहयोगी निकाय वा त्यस्ता सहयोगी निकायसंग सम्बन्धित अन्य कुनै व्यक्ति वा निकायसंग मिलेर कुनै निकायको आय,पुँजी वा मताधिकारको पचास प्रतिशत वा सोभन्दा बढी हिस्सा नियन्त्रण गर्ने वा सोबाट फाइदा प्राप्त गर्ने निकाय ।
तर देहायका व्यक्ति सम्बद्ध व्यक्ति हुने छैन ः–
(१) कर्मचारी,
(२) विभागले सम्बद्ध व्यक्ति होइन भनी तोकेको व्यक्ति
(कप) “साझेदारी” भन्नाले बीसजनाभन्दा कम साझेदार भई प्रचलित कानून बमोजिम दर्ता भए वा नभएको फर्म सम्झनु पर्छ ।
तर यस शब्दले दर्ता भएको वा नभएको एकलौटी फर्म वा संयुक्त उद्यमलाई जनाउने छैन ।
(कफ) सामान्य बिमा भन्नाले लगानी बिमा बाहेकका बिमा सम्झनु पर्छ ।
(कब) सामान्य ब्याज दर भन्नाले वार्षिक पन्ध्र प्रतिशतको ब्याजको दर सम्झनु पर्छ ।
(कभ) स्वीकृत अवकाश कोष भन्नाले दफा ६३ को उपदफा (१) बमोजिम विभागबाट स्वीकृति प्राप्त गरेको अवकाश कोष सम्झनु पर्छ ।
(कम) सेवा शुल्क भन्नाले कुनै व्यक्तिले उपलब्ध गराएको सेवा बापत निजलाई बजार मूल्य अनुसार भुक्तानी गरिएको कुनै शुल्क सम्झनु पर्छ र सो शब्दले कमिशन बैठक भत्ता, व्यवस्थापन शुल्क वा प्राविधिक सेवा शुल्कलाई समेत जनाउँछ ।
(कय) शेयरवाला भन्नाले कुनै कम्पनीको हिताधिकारी व्यक्ति सम्झनु पर्छ ।
(कर) ह्रासयोग्य सम्पत्ति भन्नाले कुनै व्यवसाय वा लगानीमा आय आर्जनको लागि प्रयोग गरिएका टुटफुट, पुरानो हुँदै गएको वा समय व्यतीत हुदै गएको कारणबाट मूल्यमा ह्रास हुने सम्पत्ति सम्झनु पर्छ ।
तर यस शब्दले व्यापारिक मौज्दातलाई जनाउने छैन ।
(कल) हिताधिकारी भन्नाले कुनै निकायमा हित भएको व्यक्ति सम्झनु पर्छ ।
(कव) तोकिएको वा तोकिए बमोजिम भन्नाले यस ऐन अन्तर्गत बनेको नियमहरुमा तोकिएको वा तोकिए बमोजिम सम्झनु पर्छ ।

a) A person who has taxable income in any income year,

b) A non-resident person's foreign permanent establishment situated in Nepal, which sends income of any income year pursuant to Sub-sections (3) and (4) of Section 68, and

c) A person who receives payment final tax withholding in any income year.

a)  Only the income of any employment having source in Nepal is included in the income of that income year,

a) A person who has taxable income in any income year,

b) A non-resident person's foreign permanent establishment situated in Nepal, which sends income of any income year pursuant to Sub-sections (3) and (4) of Section 68, and

c) A person who receives payment final tax withholding in any income year.

2) In computing the tax required to be paid by any person referred to in clause (a) of Section 3, it shall be computed by applying the related rates mentioned in Schedule-1 to the taxable income of that person. In so computing the tax, it shall be computed by deducting the amount that is adjustable in tax, and claimed by that person pursuant to Section 51 or 71.

3) Notwithstanding anything contained in Sub-section (2), the tax payable by a resident natural person referred to in clause (a) of Section 3, who has fulfilled all of the following requirements, shall be equal to the total amount of tax deducted pursuant to Section 87 from the payments made by the employer to such a natural person in that income year:

4) Notwithstanding anything contained in Sub-section (2), the tax payable in any income year by a resident natural person referred in clause (a) of Section 3, who has fulfilled all of the following requirements, shall be equal to the amount mentioned in Sub-section (7) of Section (1) of Schedule –1:

a) That person has only income earned from his business having source in Nepal in that income year,

b) The income earned from the business and turnover of the business do not exceed the ceiling mentioned in Sub-section (6) of Section (1) of Schedule –1, and

c) That person has so opted that this provision is applicable in that income year.

d) Payment of such petty amounts of which accounts are impracticable to be maintained or difficult to be maintained administratively as prescribed.

Explanation: For purposes of this section, "payment" means the payment:-

(a) made by the employer,

(b) made by the associated person of the employer, and

(c) made by any third person as referred to in the agreement made with the employer or his associated person

5) In computing the tax required to be paid by any foreign permanent establishment referred to in clause (b) of Section 3, it shall be computed by applying the related rates mentioned in Sub-section (6) of Section 2 of Schedule-1 to the income sent abroad by such establishment in that income year.

6) The amount of tax required to be paid by the person referred to in clause (c) of Section 3 shall be equal to the total amount computed by applying the rates mentioned in section to the amount of each payment liable to final tax deduction received by that person in that income year.

(a) Business,

(b) Employment, and

(c) Investment.

2) In computing the profits and benefits earned by any person from the business in any income year, it shall be computed so as to include the following amounts received by that person within that year:

a) Service charge,

b) Amount obtained from the disposal of stock-intrade,

c) Net profit derived from the business property or business liability of any person computed pursuant to Chapter-8,

d) Amount considered to have been derived pursuant to clause (a) of Sub-section (2) of Section 4 of Schedule-2 from the disposal of depreciable property of the business,

e) Gift received from any person in respect of the business,

f) Amount received for having accepted any restriction in respect of the operation of the business,

g) Notwithstanding that the amount received by any person is of such nature that it is included in income from investment, the amount received by such a person being directly related with his business, and

h) Other amounts liable to be included pursuant to Chapter-6 or 7 or Section 56 or 60.

3) Notwithstanding anything contained in Sub-section (2), the amounts deductible under sections 10, 54 and 69 and payments from which tax is withheld finally may not be included in computing the profits and benefits derived from the operation of business.

2) The following amounts received by any person in any income year shall be included in computing the profits and benefits derived by that person from investment in that income year:

a) Amount for wages, salary, leave, amount for overtime work, fee, commission, prize, gift, bonus, and payment for other facilities

b) Payment for any personal allowance including amount for dear allowance, subsistence allowance, entertainment and transport allowance,

c) Payment received for settlement of or reimbursement of expenses incurred by him/her or his/her associated person for personal purpose,

d) Payment made for having given consent to any terms of employment,

e) Payment made for termination, loss of employment, or for compulsory retirement,

f) Retirement payment and retirement contribution including the amount deposited by the employer for that employee in the retirement fund,

g) Other payments made in respect of employment, and

h) Other amounts required to be included pursuant to Chapter-6 or 7.

3)  Notwithstanding anything contained in Sub-section (2), the following matters shall not be included in computing profits and benefits derived by any person from investment: 

a) The amounts deductible under Sections 10, 54 and 69 and payment from which tax is withheld finally, and

b) Food and Tiffin provided by the employer to the employee at the work site in a manner that it is available to all employees on the same terms,

c) The settlement or reimbursement of the following expenditure incurred by any employee:

1. The expenditure fulfils the business purpose of the employer, or
2. The expenditure exempted or to be exempted in the computation of the income earned from investment.

d) Payment of such petty amounts of which accounts are impracticable to be maintained or difficult to be maintained administratively as prescribed.

Explanation: For purposes of this section, "payment" means the payment:-

(a) made by the employer,

(b) made by the associated person of the employer, and

(c) made by any third person as referred to in the agreement made with the employer or his associated person.

2)  The following amounts received by any person in any income year shall be included in computing the profits and benefits derived by that person from investment in that income year:

a) Dividend, interest derived from that investment, payment for natural resources, rent, royalty, profit from investment insurance, profit from interest in a retirement fund which has not got approval pursuant to Sub-section (1) of Section 63 or retirement payment made from the approved retirement fund,

b) Net profits derived from the disposal of nonbusiness taxable property of the investment of that person, computed pursuant to Chapter-8,

c) If, in disposing the depreciable property of the investment made by that person, the incomings to be received exceed the remaining value comprising the outgoings made for the property of the group of depreciable property pursuant to clause (a) of Subsection (2) of section 4 of Schedule-2, the excess amount,

d) Gift received by that person in respect of investment,

e) Retirement payment made in respect of that investment and retirement contribution including the amount deposited in the retirement fund for that person,

f) Amounts received for having accepted any restriction in respect of investment, and

g) Other amounts required to be included pursuant to Chapter-6 or 7 or Section 56.

3) Notwithstanding anything contained in Sub-section (2), the following matters shall not be included in computing profits and benefits derived by any person from investment:

1) The amounts deductible under Sections 10, 54 and 69 and payment from which tax is withheld finally, and

b) The amounts to be included in computing income by that person from employment or business.

a) Amount exempted from tax granted to any person entitled to tax exemption facility as provided for in a bilateral or multilateral treaty concluded between Government of Nepal and any foreign country or international organization,

b) Amount received by any natural person for doing employment in the governmental service of a foreign country,

Provided that, -

(1) The person has to be a resident or non-resident person only because of doing employment, and

(2) Such amounts have to be paid from the governmental fund of that country.

c) Amount received by a natural person referred to in clause (b) who is not a citizen of Nepal or by his/her nearest family member from the governmental fund of a foreign country,

d) Amount received by a non-Nepalese citizen appointed in the service of Government of Nepal under a the term and condition of tax exemption,

e) Allowances provided by Government of Nepal to the widow, aged (senior citizen)   or disabled,

f) Amounts received as gift, inheritance or scholarship except the amounts required to be included in computing income pursuant to Sections 7, 8 or 9,

g) Amounts received by an organization entitled to exemption for the following:

1) Donation, gift,

2) Other contributions directly related with an organization entitled to exemption as referred to in Clause (d) of Section 2 without having consideration or without hoping for such contribution, or

3) Amount earned by Nepal Rastra Bank in consonance with its objectives, or

h) Amount received for pension by a Nepalese citizen having retired from the military or police service of a foreign country from the governmental fund of that country.

(२) सहकारी ऐन, २०४८ बमोजिम दर्ताभई सञ्चालन भएको कुषि वा वन पैदावारमा आधारित रेशम खेती तथा रेशम उत्पादन, फलफूल खेती तथा फलफूल प्रशोधन, पशुपालन, डेरी उद्योग, कुखुरापालन, मत्स्यपालन, चिया खेती तथा प्रशोधन, कफी खेती तथा प्रशोधन, जडिबुटी खेती तथा प्रशोधन, तरकारीका बीउ विजन उत्पादन, मौरीपालन, मह उत्पादन, रबर खेती, फलफूल खेती तथा उत्पादन, कवुलियति वन, एग्रोफरेष्ट्री आदि व्यावसायिक वन सम्बन्धी व्यवसायहरु जस्ता कृषि तथा वनजन्य उद्योगहरु, तरकारी भण्डारका लागि स्थापित शीत भण्डार, कृषि सम्बन्धी बीउ विजन, कीटनाशक औषधी, मल तथा कृषि औजार (यान्त्रिक शक्तिबाट चल्नेबाहेक) को कारोबार गर्ने सहकारी संस्था तथा ग्रामीण समुदायमा आधारित बचत तथा ऋण सहकारी संस्था वा संघको आयमा कर लाग्ने छैन । यस्तो संस्था वा संघले वितरण गरेको लाभांशमा समेत कर लाग्ने छैन ।

(३) कुनै व्यक्तिलाई कुनै आय वर्षमा विशेष उद्योगबाट भएको आयमा देहाय बमोजिम कर लगाइनेछ ः–

(क) छ सय वा सोभन्दा बढी नेपाली नागरिकलाई वर्षभरि नै प्रत्यक्ष रोजगारी दिएमा सो वर्षको आयमा लाग्ने करको दरको नब्बे प्रतिशत,

(ख) अति अविकसित, अविकसित, अल्प विकसित क्षेत्रहरुमा विशेष उद्योग सञ्चालन भएको भए त्यस्ता उद्योग सञ्चालन भएको आय वर्ष समेत दश आयवर्षका लागि सो वर्षहरुको आयमा लाग्ने करको क्रमश ः सत्तरी, पचहत्तर र असी प्रतिशत ।

(४) उपदफा (१) , (२) वा (३) बमोजिम छूट पाउने व्यीिक्तले आयको गणना गर्दा अन्य छुट्टै व्यक्तिद्धारा सो आय मात्र प्राप्त गरे सरह मानी सो उपदफाहरुमा उल्लेख भए अनुसार आयको गणना गर्नु पर्नेछ ।

(५) एउटै आयको सम्बन्धमा उपदफा (३) को खण्ड (क) र (ख) बमोजिम एकभन्दा बढी छूट पाउन सक्ने अवस्था भएको व्यीिक्तले आफूले रोजेको कुनै एउटा छूट मात्र पाउनेछ ।

(६) उपदफा (३) मा जुनसुकै कुरा लेखिएको भए तापनि सो उपदफा को खण्ड (ख) बमोजिमको उद्योग सञ्चालन गर्न प्रयोग भएका सम्पत्तिहरु साबिकमा अन्य व्यक्तिले सोही किसिमको उद्योग सञ्चालन गर्न प्रयोग गरेको भए सो उपदफाको समयको सीमाको गणना गर्दा त्यसरी प्रयोग भएको अवधिलाई समेत गणना गर्नु पर्नेछ ।

 स्पष्टीकरण ः यस दफाको प्रयोजनको लागि,–

(क) “कृषि व्यवसाय” भन्नाले सार्वजनिक वा निजी जमिनबाट बालीनाली उत्पादन गर्ने वा जमिन प्रयोग गर्ने मोहीबाट कुत वा बाली प्राप्त गर्ने व्यवसाय सम्झनु पर्छ ।

(ख) “अति अविकसित”, “अविकसित” र “अल्प विकसित क्षेत्र” भन्नाले औद्योगिक व्यवसाय ऐन, २०४९ को अनुसूची–३ मा उल्लिखित क्षेत्र सम्झनु पर्छ ।

(ग) “विशेष उद्योग” भन्नाले चुरोट, बिंडी, सिगार, खाने सूर्ति, खैनी, मुख्य कच्चा पदार्थ सूर्ति भएको सोही प्रकृतिक अन्य उत्पादनहरु, मदिरा, बीयर तथा यस्तै प्रकारका वस्तु उत्पादन गर्ने उद्योग बाहेक औद्योगिक व्यवसाय ऐन, २०४९ को दफा ३ मा वर्गीकरण गरिएका उत्पादनमूलक उद्योग सम्झनु पर्छ । 

2) Notwithstanding anything contained in Sub-section (1), the expenditure deductible in any income year under that Sub-section shall not exceed One Hundred Thousand Rupees or five percent of the taxable income assessed without making deduction for the gift of that person in that year as referred to in Sub-section (1) and without including in the computation the limits referred to in Sub-section (2) of Section 17 and Sub-section (2) of Section 18, whichever is lesser.

3) Notwithstanding anything contained in Sub-sections (1) and (2), in any special situation, Government of Nepal may, by a notification in the Nepal Gazette, so specify that any amount spent or donated by any person for any specified work may be deducted fully or partly for expenditure, in determining the income of that person.

a)  Made in that income year,

b) Made by that year, and

c) Made in earning income from the business or investment.

(क) कुनै रकम ऋण लिए बापत सो ऋण दायित्व सिर्जना भएकोमा सो रकम सोही वर्षँ प्रयोग गरिएको वा सो वर्षमा प्रयोग गरिएका कुनै सम्पत्ति खरिद गर्न प्रयोग गरिएको , वा
(ख) अन्य कुनै अवस्थामा सो ऋण दायित्व सिर्जना हुन गएको ।
तर यस्तो ऋण दायित्व व्यवसाय वा लगानीबाट आय आर्जन हुने कार्यका लागि सिर्जना भएको हुनु पर्नेछ ।
(२) उपदफा (१) मा जुनसुकै कुरा लेखिएको भए तापनि कर छूट पाउने संस्थाद्धारा नियन्त्रित बासिन्दा निकायले कुनै आय वर्षमा नियन्त्रण गर्ने व्यक्ति वा सम्बद्ध व्यक्तिलाई व्याज भुक्तानी गरेमा उपदफा (१) बमोजिम कट्टी गर्न पाउने त्यस्तो व्याज रकम देहायका रकमहरूको जम्मा भन्दा बढी हुने छैन ः–
(क) सो निकायको समायोजित करयोग्य आयको गणनामा समावेश गरिने सो वर्षमा प्राप्त गरेको सबै ब्याज रकम, र
(ख) सो निकायबाट प्राप्त गरिएको कुनै ब्याज समावेश नगरी वा सो निकायबाट बुझाइएको कुनै ब्याज कट्टी नगरी गणना गरिएको सो निकायको सो वर्षको समायोजित करयोग्य आयको पचास प्रतिशत रकम ।
(३) उपदफा (२) बमोेजिम कट्टी गर्न नदिएको वा नगरिएको कुनै ब्याजलाई अगामी आय वर्षमा जिम्मेवारी सार्न र खर्च भएको देखाउन पाउनेछ ।
स्पष्टीकरण ः यस दफाको प्रयोजनको लागि कुनै आय वर्षको लागि “कर छूट पाउने संस्थाद्धारा नियन्त्रित बासिन्दा निकाय भई सो बासिन्दा निकायमा सो वर्षको कुनै समयमा देहायका व्यक्ति वा संस्थाहरुको पच्चीस प्रतीशत वा सोभन्दा बढी निहित स्वामित्व वा नियन्त्रण रहेको निकाय सम्झनु पर्छ ः–
(क) कर छूट पाउने संस्था र सो संग सम्बद्ध व्यीिक्त,
(ख)  सो वर्षमा दफा ११ बमोजिम कर छूट पाउने व्यक्ति वा त्यस्तो व्यीिक्तसंग सम्बद्ध व्यक्ति,
(ग) गैर बासिन्दा व्यीिक्त वा गैर बासिन्दा व्यक्तिसंग सम्बद्ध व्यक्ति , वा
(घ) खण्ड (क), (ख) र (ग) मा उल्लिखित व्यीिक्तहरुको कुनै संयोजन ।

(३क.) उपदफा (१) मा जुनसुकै कुरा लेखिएको भएतापनि बैंकि· व्यवसायका सम्बन्धमा नेपाल राष्ट्र बैंक ऐन, २०५८ तथा बैंकि· सम्बन्धी प्रचलित कानूनका अधीनमा रही नेपाल राष्ट्र बैंकले तोकेको लेखांकनलाई विभागलेमान्यता दिन सक्नेछ ।”  

2) The allowance for the cost referred to in Sub-section (1) shall be computed as follows by deducting the amount referred to in clause (b) from the amount referred to in clause (a):-

a) The amount to be set by adding the cost of the stock-in-trade derived from any business in any income year to the initial value of the stock-intrade of that business in that year,

b) The amount of final value of the stock-in-trade of any business in an income year referred to in clause (a).

3) The initial value of the stock-in-trade of any business in any income year shall be the final value of the stock-in-trade of that business at the end of last income year.

4) Whichever is lesser out of the following amounts shall be considered the final value of the stock-in-trade of that business of that income year:-

a) The cost of the stock-in-trade of that business at the end of that income year, or

b) The market value of the stock-in-trade of that business at the end of that income year.

5) In computing the cost of the stock-in-trade of a business, a person has to do as follows subject to Section 45 and Sub-section (6):-

a) In computing the income of a business, in the case of a person maintaining the accounts on the cash basis, by using the method of cost price or consumption cost, and

b) In computing the income of a business, in the case of a person maintaining the accounts on the accrual basis, by using the method of consumption cost.

6) If the stock-in-trade of business of any person cannot be determined, that person may choose to the first in first out method or average cost method to compute the cost of stock-in-trade.

Provided that, once such a method is selected, that method cannot be altered without written permission of the Department.

7) In computing the cost of stock-in-trade pursuant to Subsection (5), it has to be computed by the following method:-

a) In computing as per the consumption cost method, to so compute the cost of the stock-in-trade under the widely recognized accounting principle that it is equal to the sum total of direct material cost, direct labor cost and overhead cost of factory.

b) In computing as per the cost price method, to so compute the cost of the stock-in-trade under the widely recognized accounting principle that it is equal to the total sum of direct material cost, direct labor cost and alterable overhead cost of factory.

8) In computing the cost of stock-in-trade pursuant to Subsection (6), it has to be computed by the following method:-

a) In computing as per the average cost method, to compute on the basis of all weightage average costs of the stock-in-trade of the same type in the business under the widely recognized accounting principle.

b) In computing as per the first in first out method, to compute on the basis that the stock-in-trade received first is also disposed first, under the widely recognized accounting principle.

Explanation: For purposes of this Section,-

(a) "Direct labour cost" means the labor cost directly related with the production of the stock- in-trade.

(b) "Direct material cost" means the cost of materials which are or will be an integral part of the stock-intrade.

(c) "Overhead cost of factory" means the total cost incurred in producing stock-in-trade except the direct labor cost and direct material cost.

(d) "Alterable overhead cost of factory" means the overhead cost of factory that alters directly with a change in the produced quantity of stocks in-trade.

2) Notwithstanding anything contained in Sub-section (1), in deducting the expenses allowable under that Sub-section, it shall not exceed five percent of the depreciation base amount of the group of property remaining at the end of that income year, and in cases where expenses are incurred in excess thereof, such deduction can be made only as per the order of such expenses incurred.

3) Any excess expense or part thereof which is not deductible pursuant to Sub-section (1) because of the limit referred to in Subsection (2) may be added to the depreciation base amount of the group of the concerned property pursuant to Sub-section (5) of Section 2 of Schedule 2.

2) Notwithstanding anything contained in Sub-section (1), in computing the limit of expenses deductible under that Sub-section in any income year, it shall not exceed Fifty percent of the taxable income computed without deducting pollution control expenses of all businesses operated by that person and without including in computation the limits referred to in Sub-section (2) of Section 12 and Sub-section (2) of Section 18.

3) Any excess expense or part thereof which is not deductible in excess of the limit referred to in Sub-section (2) may be capitalized and depreciated pursuant toSchedule-2.

Explanation: For purposes of this Section, "pollution control expenses" means the expenses incurred by any person related with any process for the purpose of controlling pollution or protecting or conserving the environment in other manner.

2) Notwithstanding anything contained in Sub-section (1), in computing the limit of expenses deductible under that Sub-section in any income year, it shall not exceed Fifty percent of the taxable income of that person computed without deducting research and development expenses of all businesses operated by that person and without including in computation the limits referred to in Sub-section (2) of Section 12 and Sub-section (2) of Section 17.

3) Any excess expense or part thereof which is not deductible in excess of the limit referred to in Sub-section (2) may be capitalized and depreciated pursuant to Schedule-2.

Explanation: For purposes of this Section, "research and development expenses" means the expenses incurred by any person for the purpose of controlling developing his business and improving commercial production and process.

Provided that, such expenses shall not include the cost at the time of acquiring any property referred to in Sub-section (3) of Section 1of Schedule-2.

2) Notwithstanding anything contained in Sub-section (1), the following provisions shall be applicable in respect of the deduction for depreciation of the devices, equipment and other machineries installed by any entity in the projects which involve construction and operation of public infrastructures and are transferred to Government of Nepal and in the projects on construction of powerhouses and generation and transmission of electricity:-

a) If the devices, equipment and other machineries installed previously become obsolete because of being old or worn and torn and new devices, equipment and other machineries have to be installed in lieu thereof, the value which remains by subtracting depreciation deduction until the income year from the cost of the property, which has become obsolete property because of being old or worn and torn, installed previously in that income year in which they were so installed may be deducted as expenses.

b) In respect of properties other than the old properties replaced pursuant to clause (a), if any value remains by subtracting depreciation deduction until the income year when transfer takes place from the cost of those properties at the time when the entity transfers such a project to Government of Nepal, the entity may deduct such a remaining value as expenses.

a) Loss suffered by that person from any other business and not deducted in that year, and

b) Loss suffered by that person from any business and not deducted in the last four income years.

Provided that, in the case of the projects which involve construction and operation of public infrastructures and are transferred to Government of Nepal and the projects on construction of powerhouses and generation and transmission of electricity, loss not deducted in the last seven income years.

2) For purposes of computing the income earned by any person from any investment in any income year, such person may deduct the loss suffered by that person from any other investment and not deducted in that year.

3) Subject to Sub-sections (1) and (2) and for purposes of these Sub-sections, any loss suffered by any person in respect of the foreign source and not deducted may be deducted only in computing the income earned by that person from his foreign source, and the loss suffered in earning any non-taxable income and not deducted may be deducted only in computing non-taxable income of that person.

4) Subject to Sub-sections (1) and (2), if any person suffers a loss in an income year when a long-term contract obtained by any person by making competition of the business at the international level was completed or when a disposal was made in any other manner or a loss which was not deducted and the liability whereof is allowed to be carried forward in the coming year pursuant to clause (b) of Sub-section (1) is related with a long-term contract, the Department may, by a notice in writing, give permission to deal with that loss as follows:-

a) The loss may be carried backward in last income year or years, and

b) The loss may be treated as not deducted only to the extent of the excess where, in computing the income of the business related with that long-term contract, the amounts to be included in the incomings exceed the amounts to be included in the outgoings.

5) The following loss suffered by any person in any income year has to be allocated as if it were related with a long-term contract or contracts of that person:-

(a) The loss resulted from a long-term contract or contracts related with the business, and

(b) The loss on excess of the expenses to be deductible in computing the income earned from that business in the year related with the contract for each such contract.

6) If, in computing the income earned by any person in any income from more than one business or investment, that person is allowed to deduct the loss not deducted from more than one business or investment, that person may on his own determine the priority of the business or investment from which the portion of loss is deducted.

7) If, in computing the loss suffered by any person from any business or investment in any income year, this section is not used and the deductible amounts exceed the amounts includable in computing the income from the business or investment of that person, such excess amounts have to be computed.

Explanation: For purposes of this Section, "the loss not deducted" means the loss to the extent not deducted in computing the income of any person pursuant to Sub-sections (1), (2) or (4).

a) Expenses of domestic or personal nature,

b) Tax payable under this Act and a fine or similar other fee paid to the government of any country or any local body thereof for a violation of any law or regulation, byelaw framed thereunder,

c) Expenses to the extent of those spent by any person to obtain the amounts enjoying exemption pursuant to section 10 or expenses made to obtain the amounts from which tax has been deducted finally,

d) Expenses for the payments referred to in Subsection (2),

e) Distribution of profits by any entity, or

f) Similar other amounts despite that they are not so mentioned in clauses (a), (b), (c), (d) and (e) as not to be deductible, except those allowable under this Chapter or Chapters-6, 7, 10, 12 or 13.

2) If a person, whose annual turnover is more than two million rupees in any income year, makes a cash payment of more than Fifty Thousand Rupees at a time in that income year except in the following circumstances, he shall not be allowed to make that deduction:-

a) Payment made to Government of Nepal, constitutional body, corporation or bank or financial institution owned by Government of Nepal,

b) Payment made to a farmers or producer producing a primary agro-product and payment to a farmer who has processed such product on his own, notwithstanding that primary processing of such product has already been carried out,

c) Payment for retirement contribution or retirement payment,

d) Payment made in a place where banking services are not available,

e) Payment made on the day when banking services are closed or payment involving a mandatory provision of payment in cash, or

f) Amount deposited in a bank account of the recipient of payment.

3) Subject to the provisions of Sections 14, 15, 16, 17, 18, 19, 20 and 71, no amount shall be deductible for capital expenses or foreign income tax.

Explanation: For purposes of this section,-

(a) "Expenses of domestic or personal nature" means the following expenses:-

(1) Expenses made for any natural person, and inclusive of the following expenses made for the interest of a loan to the extent that the loan has been used for personal purpose:

(a) Expenses made for a natural person for the provision of lodging, fooding, tiffin, and other activities of entertainment or amusement,

(b) Expenses for the movement by a natural person from his house to the place where the business or investment is operated except for the movement in the course of business or investment,

(c) Expenses made to purchase clothes for a natural person except those clothes which are not proper to put on at other times than working times, and

(d) Expenses made for education or training. Provided that, the expenses made only for the education directly related with the business or investment, where no degree or diploma is achieved.

(2) Except in the following conditions and to that extent, expenses incurred in respect of a payment made by any person to any natural person and expenses made for a third person:-

(a) If that payment has been included in computing the income of a natural person,

(b) If the natural person has made, as a consideration, a return payment to that person in a sum equal to the market value of the payment received by him,

(c) If payment is made for such prescribed petty amounts of which accounts are difficult or administratively impracticable to be maintained.

(b) " Place where banking service is available" means any place within ten kilometers area whereof banking service is available.

(c) " Cash payment" means a payment except a payment by a letter of credit, cheque, draft, money order, telegraphic transfer, money transfer (hundi) through a bank or financial institution and a transfer made by any other means between banks or financial institutions.

(d) "Capital expenses" means the following expenses:-

(1) Expenses incurred in feasibility study, exploration and development of natural resources,

(2) Expenses incurred in acquiring any property with useful life for more than twelve months, or

(3) Expenses in disposing a liability.

2) A natural person shall, while computing the income to be earned from his employment and investment, maintain accounts on the cash basis, for purposes of tax.

3) A company shall maintain accounts on the accrual basis, for purposes of tax.

4) Except in cases where the Department has otherwise specified by issuing a notice in writing, any person may, for purposes of income tax, maintain accounts on the cash or accrual basis, subject to Subsections (1), (2) and (3).

5) Any person may make an application to change the method of accounting for tax purposes, subject to Sub-sections (2) and (3). If the Department thinks that it is necessary to change the method of accounting to clearly show the income of such person, the Department may give permission to change the method of accounting.

6) If the method of accounting of any person for purposes of tax is changed pursuant to Sub-section (5), in computing the income of that person in the income year when such change is made, adjustment has to be so made that no amounts out of those included, deducted or to be included or deducted are omitted or duplicated.

(a) To treat as income only that which is received at the time when payment is received by him or made available to him and include it in his income.

(b) To deduct for expense only after he pays out.

(२) उपदफा (१) मा उल्लेख भए बमोजिम कुनै व्यक्तिले गरेको आयको गणनामा कट्टी गर्ने प्रयोजनको लागि देहायका खर्चहरु व्यहोरेको मानिनेछ ः–
(क) कुनै अर्काे व्यक्तिबाट भएको भुक्तानीको सट्टामा त्यस्तो खर्च समावेश भएको कुनै भुक्तानी गरिएको भएमा देहायको अवस्थामा खर्च व्यहोरेको मानिनेछ ः–
(१) सो व्यक्तिमा सो भुक्तानी गर्ने दायित्व रहेकोमा,
(२) त्यस्तो दायित्वको मूल्य उचित र यथार्थपरक ढङ्गले यकीन गर्न सकिने भएकोमा, र 
(३)अर्काे व्यक्तिबाट भुक्तानी प्राप्त भएकोमा , वा
(ख) खण्ड (क) मा उल्लिखित अवस्था बाहेक अन्य सबै अवस्थामा भुक्तानी गरिएको समयमा खर्च व्यहोरेको मानिनेछ ।

(३) कुनै लगानी वा व्यवसायबाट भएको आयको गणना गर्न एक्रुयल आधारमा लेखा राख्ने व्यक्तिलाई देहायका अवस्थाहरुमा विभागले लिखित सूचना दिई कर घट्ने भएमा कर प्रयोजनको लागि भुक्तानीलाई पछि सार्ने वा घटाउने कार्यलाई रोक्न सो भुक्तानी दिने समयलाई समायोजन गर्न सक्नेछ ः–

(क) निम्न अनुसार भएमा,–
(१) कुनै आय वर्षको लागि आयको गणना गर्दा कुनै खर्च कट्टी गर्न पाउने तर सो व्यक्तिले कर प्रयोजनको लागि नगद आधारमा लेखांकन गर्नु परेको भए सो खर्च कुनै आगामी आय वर्षमा मात्र कट्टा गर्न माउँदथ्यो, वा 
(२) सो आय वर्षमा आगामी आय वर्षको आय गणना गर्दा मात्र समावेश गर्नु पर्ने कुनै भुक्तानी पाएको तर सो व्यक्तिले कर प्रयोजनको लागि नगद आधारमा लेखांकन गर्नु परेको भए सो भुक्तानीको रकम सो भुक्तानी पाएकै आय वर्षमा समावेश हुन्थ्यो , र 
(ख) कुनै व्यक्तिले कुनै आय वर्षमा भुक्तानी दिँदा वा पाउँदा तिर्नु पर्ने कुल करलाई घटाउने भएमा ।

(३क.) उपदफा (१) मा जुनसुकै कुरा लेखिएको भएतापनि बैंकि· व्यवसायका सम्बन्धमा नेपाल राष्ट्र बैंक ऐन, २०५८ तथा बैंकि· सम्बन्धी प्रचलित कानूनका अधीनमा रही नेपाल राष्ट्र बैंकले तोकेको लेखांकनलाई विभागले मान्यता दिन सक्नेछ ।”  

(४) व्यवसाय वा लगानीबाट आर्जित कुनै व्यक्तिको हुनसक्ने फरकलाई भुक्तानी प्राप्त हुँदा वा दिइदा उपयुक्त समायोजन गर्नु पर्नेछ ः–
(क) सो व्यक्तिले आफूले पाउन सक्ने परिमाणको कुनै भुक्तानी समावेश गरेमा वा आपूmले व्यहोर्नु पर्ने परिमाणको कुनै भुक्तानी कट्टा गरेमा , र 
(ख) खण्ड (क) मा उल्लिखित कार्य भए पश्चात मुद्राको मूल्यांकनको फरकको कारण समेतले गर्दा सो व्यक्तिले फरक परिमाणमा भुक्तानी पाई वा भुक्तानी दिई सो प्राप्त गरेको वा व्यहोरेको रकममा फरक पर्न गएको भएमा ।

a) Where the person subsequently gets the amount reimbursed, or recovers the expense, as the case may be,

b) Where the accounts of the amount received have been maintained on the accrual basis and the person subsequently relinquishes his right to receive that amount or where that amount is a debt claim of that person and he writes off the debt as a bad debt, or

c) Where the accounts of the expense incurred have been maintained on the accrual basis and the person subsequently relinquishes his liability to incur such expense or where that expense is a debt claim, the person whom the debt is to be repaid remits the debt.

2) Any person may relinquish the right to receive any amount or to write off the debt liability of that person as a bad debt only in the following circumstances:-

a) In the case of a debt claim of any financial institution or bank, the debt claim is converted into a bad debt as per the specified criteria, and

b) If, after having followed all proper measures to receive payment in circumstances other than those referred to in clause (a), that person is reasonably satisfied that the right or debt claim cannot be realized or recovered.

Explanation: For purposes of this section, "long-term contract" means a contract in the following circumstance":-

(a) A contract with a validity period of more than twelve months, and

(b) A contract with a deferred consideration except a contract which is concluded for production, installation or construction or for the discharge for relevant services for each of such works or which does not contain such elements.

2) A contract with a deferred consideration, a contract to be included according to the sum of sequential increase, a contract to be deducted according to the sum of sequential increase, an excluded contract and a contract of completion percentage shall be as prescribed.

:

a) In the case of a payment made by way of transferring money or property by any person to another person, amount equal to the market value of the transferred money or property,

b) The amount to be determined as prescribed for the payment made for the provision of the following matters or the amounts to be determined pursuant to clause (e) where there is no provision for determining the amount:-

(1) A motor vehicle used or made available for use for personal purposes of the recipient of payment in full or in part, or

(2) A building made available for the recipient of payment.

c) The amount which remains by deducting the contributions of the recipient of payment from the expenditure made by the person making payment for the provision of the following things:-

(1) The services of a caretaker of the house, cook, driver, gardener or other domestic assistant,

(2) Any food, drinking or entertainment, or

(3) Services like water tap, electricity, telephone installed in the residence of the recipient,

d) If the interest paid by any person who has to receive payment in any income year for a loan is less than the amount of interest to be paid as per the prevailing interest rate, the amount to the extent of such a less,

e) In respect of a payment except the payment referred to in clauses (a), (b), (c) and (d), if a third person receives payment instead of the recipient of payment, the amount equal to the value of benefit derivable generally.

2) The time when a payment is earned, received, made, borne or otherwise worked out for tax purposes in respect of clauses (a) and (e) of Sub-section (1) shall be the time when the quantification of amounts has been made.

2) If the amounts to be included or deducted in computing the income of any person in any income year have been quoted in other currency except Nepalese rupees, such currency has to be converted into Nepalese rupees as per the exchange rate prevailing at the time when the amount was received, expended, paid, or otherwise worked out for tax purposes.

3) Notwithstanding anything contained in Sub-section (2), in cases where the department has, by issuing a notice in writing, given permission for purposes of that Sub-section, any person may apply the average exchange rate prescribed by the Department.

(a) Where benefit is derived from any payment indirectly, or

(b) Where the recipient of any payment is specified.

(a) Compensation for any income earned or likely to be earned by that person from any business or investment or for any amount to be included in the computation of that income, or

(b) Compensation for any loss suffered or likely to be suffered by that person from any business or investment or for any expenses to be deducted in the computation of that income.

2) All payments referred to in Sub-section (1) have to be calculated in gross and the total sum thereof has to be divided into two portions as follows:-

a) Capital portion comprising all payments for annuities as per necessity or equivalent to the market value of any property at the time of selling that property by installment or leasing it, and

b) Interest portion to be set by subtracting the capital portion from the total sum of all payments referred to in Sub-section (1).

(1) In determining installments at the very time when annuities, installment sale or financial lease is carried out pursuant to Sub-section (2), the seller has to provide a total payment schedule clearly setting out the capital and interest portions. One who cannot provide such schedule has to treat the interest and principal portion, annuities, installment sale or financial lease as if they were mixed loans with interest to be kept on adding in every six months and allocate them in payments as referred to in Sub-section (1).

(2) The borrower has to pay the principal in part and the interest in part by working out the portion of interest in the due and payable principal at the time of each payment in a manner that the rate of interest is the same during the period of loan of payment to be made pursuant to Sub-section (1) as if it were a mixed loan.

(3) The following terms have to be fulfilled in making a lease under a financial lease pursuant to this section:-

(a) Where the lease agreement contains an option that ownership is transferred after expire of the validity period of the lease or the lessee can purchase that property at a certain price or a foreseen price after expire of the validity period of the lease,

(b) Where the period of lease exceeds Seventy-Five percent of the useful life of that property,

(c) Where the estimated market value of that property after expire of the period of the lease is less than twenty percent of the market value of that property prevailing at the beginning of the lease,

(d) In the case of a lease that commences prior to the ultimate twenty-five percent life of the useful life of the property, where the current value of the minimum lease payment is equal to ninety percent of the market value of that property at the time of commencement of the period of the lease or more than that, or

(e) Where a property has been prepared in a special manner for the lessee and, after expire of the period of lease, that property is not of practical use for any other person except the lessee.

(6) Each payment referred to in Sub-section (1) shall be divided into two portions pursuant to Sub-section (3), and the interest portion under the debt claim has to be treated as paid or to be paid interest and the capital portion as repayment of capital.

(7) A lessee under a financial lease shall be treated as the person having ownership of the property leased, and the lesser shall be treated as having debt claim over the lessee.

(8) The current value of the lease payment has to be computed by applying discount rate equal to the normal interest rate.

Explanation: "Period of lease" means and includes an additional period for which the lessee is entitled to have the lease renewed.

2) In carrying anything mentioned in Sub-section (1), the Department may do as follows:-

a) To re-characterize any income, loss, amount or source and type of payment, or

b) Where various expenses including main office expenses which any person had to incur to operate any business have yielded benefits to the associated person or persons, to allocate such expenses between the associated persons on the comparative basis of the turnover of the business.

2) The transfer of the following amounts by one or more interposed entities directly or indirectly between persons and associated persons as mentioned in Sub-section (1) and circumstances where attempts are made to divide income to lessen the tax required to be paid by the persons or associated persons by virtue of that transfer shall also be included:-

a) The amounts to be received and expenses to be incurred, or

b) The amounts to be received or used from any property by the transferee of that property or expenses incurred or payment made by that person for the acquisition of ownership of that property.

3) In determining as to whether or not any person has attempted to divide any income pursuant to Sub-section (2), the Department shall take the market value of any payment made for the transfer as the basis.

(a) To re-characterize any arrangement or any part of such arrangement made or attempted to be made as a part of a tax avoidance scheme,

(b) To disregard any arrangement or any part of such arrangement that does not show any substantial effect, or

(c) To re-characterize any arrangement or any part of such arrangement that does not show any substantial element.

Explanation: For purposes of this Section, "tax avoidance scheme' means any arrangement with a main objective to have avoidance of tax liability or to lessen the tax liability.

a) The sum of all losses suffered in that year from the disposal of business property or liability,

b) The loss that could not be deducted elsewhere out of the net loss suffered from any other business of that person in that year, and

c) The loss that could not be deducted out of the net loss suffered from that business in any income year or from any other business of that person in the past.

2) The net profits derived from the disposal of taxable nonbusiness property of investment of any person for any income year shall be computed by deducting the following losses from the sum of all profits derived from the disposal of taxable non-business of that investment in that income year:-

a) The sum of all losses suffered in that year from the disposal of taxable non-business property of that investment,

b) The loss that could not be deducted elsewhere out of the net loss suffered from any other business or investment of that person in that year, and

c) The loss that could not be deducted out of the net loss suffered from that investment, any business or any other investment of that person in any past income year.

3) Any person can make a claim for deduction pursuant to sunsection (1) or (2) in respect of a loss suffered from the disposal of the property or liability of foreign source only to the extent of the benefit derived from the disposal of any property or liability of foreign source.

4) If any person is entitled, under Sub-section (1) or (2) to deduct the net loss suffered from a business or investment in more than one computation pursuant to Sub-section (1) or (2), he may select computations for the purpose of deducting that loss or portion thereof.

Explanation: For purposes of this Act,-

(1) "Net loss" means,-

(a) In respect of any business, the amount to the extent that the loss suffered from the disposal of the business property or liability of that business in any income year exceeds the profit derived from the disposal of business property or liability of that business in that year, and

(b) In respect of any investment, the amount to the extent that the loss suffered from the disposal of the taxable nonbusiness property of that investment in any income year exceeds the profit derived from the disposal of taxable non-business property of that investment in that year.

(2) "Net loss that could not be deducted" means of any business or investment,-

(a) The loss that could not be deducted pursuant to clause (b) or (c) of Sub-section (1) or clause (b) or (c) of Sub-section (2) out of the net loss suffered in that year, and

(b) Any loss of that business or investment that could not be deducted referred to in Sub-section (7) of Section 20, which could not be remitted by virtue of the time limit referred to in Sub-section (1) or (2) of Section 20.

2) The loss suffered by any person from the disposal of any property or liability has to be computed, considering it to be the extent that the sum of the outgoings for that property or liability exceeds the sum of the income earned from that property or liability at the time of disposal.

a) In respect of any property, the expenses made by that person in acquiring that property, inclusive of the following amounts:-

(1) The related expenses made in the construction and production of that property, and

(2) Any amount required to be included in the assessment of the income of that person as a result of acquisition.

b) The expenses made by that person in obtaining the ownership of that property or liability, inclusive of the expenses incurred in the alteration, improvement and repair and maintenance of the property or liability, and the expenses in the repair and maintenance of the property,

c) The expenses made by him in the disposal of the property or liability, and

d) Casual expenses made by him in acquiring the property or bearing liability and disposing such property or liability. Provided that, the expenses referred to in clauses (a), (b), (c), (d), and (e) of Sub-section (1) of Section 21 and the expenses that are allowed to be deducted in the assessment of income are not required to be included in such expenses.

2) The net expenses for any property or liability at any particular time shall be so computed as to consider the amounts to the extent of excess of the sum of all expenses for that property or liability than the sum of all incomes for that property or liability at that time.

3) The amount of expenses to be deducted in computing the income as referred to in Chapter-6 and 7 shall be deemed as if they were made in respect of the expenses for any property or liability, and shall be applicable in respect of the expenses referred to in Sub-section (1). Provided that, Section 26 shall no apply in respect of the abovementioned provision.

a) The amounts received, in respect of the liability, by that person in bearing the liability,

b) The amounts to be received by that person in acquiring the property or in respect of bearing the liability, including the amounts acquired by altering or lessening the value of the property or increasing the liability, and

c) The amounts received or to be received by that person in respect of the disposal of that property or liability.

Provided that, the amount exempted from tax, taxable amount subject to tax deduction finally or the amounts to be included in the income in assessing the income of that person shall not be included in such income.

2) The net incomes for any property or liability at any time shall include the amounts to the extent of excess of the incomes for that property or liability than the sum of all expenses for that property or liability at that time.

3) The amount to be included in the income in computing the income as referred to in Chapter-6 and 7 shall be deemed as if they were made in respect of the incomes for any property or liability, and shall be dealt with pursuant to Sub-section (1). 

Provided that, Section 26 shall not apply in respect of the abovementioned provision.

2) If the burden of liability of any person ceases, he shall be deemed to have disposed that liability. The disposal of liability has to include acts such as settlement, cancellation, release and completion of the liability or amalgamation of liability in other liability or property.

3) Notwithstanding anything contained in Sub-sections (1) and (2), any person shall be deemed to have disposed any property or liability in the following circumstances:-

a) In respect of a natural person, immediately before the death of that person,

b) In respect of any property, if the sum of the incomings for that property exceeds the sum of the outgoings for that property,

c) In respect of any property subject to debt claim,-

(1) If it has become a bad debt as per the standards as prescribed in respect of a debt claim of a bank or financial institution, and

(2) If, in any other circumstance, that person has reasonably believed the debt claim as nonrecoverable.

Provided that, the person has to have already pursued all proper measures to recover that debt claim.

d) If any person has started using a business property, non-business taxable property, depreciable property or stock-in-trade in a manner to alter the type thereof, immediately before the use of the altered form of that property,

e) In the circumstances referred to in section 57 in respect of any entity, and

f) Immediately before that person has become a nonresident person, except the land or building situated in Nepal.

4) If any person disposes any property by leasing it under a financial lease pursuant to Sub-section (1), the lessee of that property shall be deemed to have acquired the ownership of that property at the time of disposal.

5) The following provisions shall apply for purposes of computing the profits derived by any person from the disposal of the property or liability:-

a) The amounts of net expenses for any property under ownership of any person at the time of commencement of this Act shall be deemed to be equal to the market value of the property prevailing at that time,

b) The amounts of net incomes for liability of any person at the time of commencement of this Act shall be deemed to be equal to the amount as per the market value of the liability prevailing at that time.

(a) In respect of property,-

(1) That person shall be deemed to have received the amount equal to the market value of that property at the time of disposal for the disposal, and

(2) The net outgoings made for that property until that time shall be deemed to be equal to the amount receivable.

(b) In respect of liability,-

(1) That person shall be deemed to have spent the amount equal to the market value of that liability at the time of disposal for the disposal, and

(2) The incomings derived for that liability pursuant to clause (1) until that time shall be deemed to be equal to the amount of expenses.

(a) The person who has disposed the property shall be deemed to have received the amount equal to the market value of that property at the time of disposal for the disposal, and

(b) The person who has acquired the property through disposal shall be deemed to have incurred cost in a sum equal to clause (a).

Provided that, this provision shall not be applicable where the provision of Section 45 applies.

(a) That person shall be deemed to have obtained, for disposal, the amount equal to the net expenses incurred immediately before the disposal, and

(b) The person who has acquired the property through transfer shall be deemed to have incurred cost in a sum equal to clause (a).

(a) That person shall be deemed to have obtained, for disposal, the amount equal to the market value of that property prevailing at the time of disposal, and

(b) The person who has acquired the property through transfer shall be deemed to have incurred cost in a sum equal to clause (a).

a) The person who has disposed the property shall be deemed to have received the amount equal to the market value of that property at the time of disposal for the disposal, and

b) The person who has acquired the property through disposal shall be deemed to have incurred cost in a sum equal to clause (a). Provided that, this provision shall not be applicable where the provision of Section 43 and 44 applies.

2) Notwithstanding anything contained in Sub-section (1), if any person disposes any business property, non-business taxable property or property remaining as stock-in-trade by transferring ownership over such property to any associated person and the matters contained in Subsection (6) are fulfilled, the following provisions shall apply:-

a) That person shall be deemed to have received the amount equal to the net loss suffered for that property immediately before the disposal, for the disposal, and

b) The person who has acquired the property through transfer shall be deemed to have incurred cost in a sum equal to that mentioned in clause (a).

3) Notwithstanding anything contained in Sub-section (1), if any person disposes any depreciable property by transferring ownership over such property to any associated person by fulfilling the matters contained in Sub-section (6), the following provisions shall apply:-

a) That person shall be deemed to have received, for the disposal, the amount equal to the remaining value of the group of the descending system pursuant to Section 4 of Schedule-2 at the time of disposal, and

b) The person who has acquired the property through transfer shall be deemed to have incurred cost in a sum equal to that mentioned in clause (a).

4) If any person disposes any liability by transferring it to an associated person pursuant to this Section or by transferring it to any other person without taking any value, the following provisions shall apply:-

a) The person shall be deemed to have incurred cost for the disposal in a sum equal to the market value or the net income earned for the liability immediately before the disposal, whichever is lower, and

b) The transferee of the liability shall be deemed to have received an amount equal to that liability in respect of assumption of the liability.

Provided that, this provision shall not be applicable where the provisions of Sections 43 and 44 apply.

5) If any person disposes any liability assumed in earning income from any of his business by transferring it to an associated person, by fulfilling the matters mentioned in Sub-section (6), the following provisions shall apply:-

a) The person shall be deemed to have incurred cost for the disposal in a sum equal to the net income earned for the liability immediately before the disposal, and

b) The associated person shall be deemed to have received an amount equal to that amount in respect of assumption of the liability.

6) For purposes of Sub-sections (2), (3) and (5), the following matters have to be fulfilled:-

a) The disposed business property, stock-in-trade or depreciable property of business shall be the business property, stock-in-trade or depreciable property of business of the associated person immediately after the transfer by the person making such disposal.

b) The disposed business property, stock-in-trade or depreciable property of business shall be the business property, stock-in-trade or depreciable property of business of the associated person immediately after the transfer by the person making such disposal.

c) In the case of any liability, the liability has to be transferred to the associated person for the earning of income from any business or investment of the associated person.

d) The transferor and the associated person shall have to be residents at the time of transfer, and the associated person has not to be a person enjoying tax exemption.

e) The ownership vested in that property or burden vested in that liability shall continue to exist Fifty percent as the case may be.

f) Both of that person and the associated person have to make request in writing in order to enforce an option under Sub-sections (2), (3) or (5), as the case may be.

a) That person shall be deemed to have received, for the disposal, an amount equal to the sum of the following amounts:-

      (1) Net expenses for that property immediately before the disposal, and

        (2) If the amount derived from the disposal exceeds the expenses incurred in acquiring the substituted property, the amount of such excess, and

b) The person shall be deemed to have incurred expenses in a sum equal to the sum of the following amounts, in acquiring the substituted property.

(1) Net expenses for the disposed property immediately before the disposal, and

(2) If the expenses incurred in acquiring the substituted property exceed the amount derived from the disposal, the amount of such excess.

2) If any person, no later than one year of the involuntary disposal of any liability in any mode out of the modes mentioned in Sub-section (2) of Section 40, bears other liability of similar type in lieu of that liability and makes request in writing to have this Section applied, it shall be as follows:-

a) That person shall be deemed to have incurred expenses, for the disposal, in a sum to be set by subtracting the amount mentioned in clause (2) from the amount mentioned in clause (1):

(1) Amount for net incomes for that liability immediately before the disposal, and

(2) If the expenses incurred in making that disposal exceed the amount in assuming the substituted liability, the amount of such excess expenses, and

c) The person shall be deemed to have received a sum equal to the sum of the following amounts, in acquiring the substituted liability:

(1) Net incomes for the disposed liability immediately before the disposal, and

(2) If the amount derived in assuming the substituted liability exceeds the expenses incurred in making the disposal, the amount of such excess.

(3) The circumstances where involuntary disposal is created after substitution of one security of any entity for another security as a result of a change in the security of the interest in the entity or restructuring of the entity shall be as prescribed.

a) Where net expenses were incurred for the amalgamated property or liability immediately before disposal, that person:

(1) shall be deemed to have received an amount equal to the net expenses in respect of the disposal of the amalgamated property or liability, Provided that, such amount shall not exceed the amount received by that person for the amalgamated liability.

(2) Shall be deemed to have incurred expenses in a sum equal to that amount in holding ownership or bearing liability of the amalgamated property.

b) Where net incomes were earned for the amalgamated liability in respect of the amalgamated liability, immediately before the disposal of the liability, that person:

(1) shall be deemed to have incurred expenses in a sum equal to net incomes for the disposal of the amalgamated liability, Provided that, in the case of the amalgamated property, that amount shall not exceed the amount spent by that person in acquiring that property.

(2) shall be deemed to have received an amount equal to that amount in holding ownership of or bearing liability of the amalgamated property.

2) Without prejudice to the matters contained in Sub-section (1), that Sub-section shall also apply to the following circumstances:-

a) If that person carries out an act of acquisition or sale of any property,

b) If that person acquires the property leased, and

c) If the guaranteed liability is transferred by the transferee.

(a) Where the rights or burdens are permanent, that first person shall be deemed to have disposed any part of that property or liability but not to have acquired any new property or liability, and

(b) Where the rights or burdens are temporary or contingent, that first person shall be deemed not to have disposed any part of that property or liability.

Provided that, such person shall be deemed to have acquired a new property or assumed a new liability, as the case may be.

a) Where one or more properties are acquired or one or more liabilities assumed at the same time,

b) Where one or more properties or liabilities are disposed at the same time.

2) If any person who holds ownership of any property or bears any liability disposes any part of that property or liability, the net expenses or net incomes of that property or liability immediately before the disposal have to be allocated in the portion of the disposed property or liability and in the remaining portion, as the case may be, on the basis of the market value thereof immediately after the disposal.

2) The husband or wife out of the spouses who choose the provision contained in Sub-section (1) in respect of any income year shall be jointly and severally responsible between each other for the tax payable by them in that year.

2) The tax adjustment amount for medical treatment of a natural person in any income year shall be computed also by adding any amount, if any, referred to in Sub-section (4) to the amount to be set by Fifteen per cent of the approved medical treatment expenditure referred to in Sub-section (1).

3) Notwithstanding anything contained in Sub-section (2), the amount of tax adjustment for medical treatment claimed by a natural person in any income year shall not exceed the prescribed limit.

4) In the case of any natural person in any income year, the excess amounts as mentioned in clauses (a) and (b), up to the following limit, may be carried forward and be included in the amount referred to in Sub-section (2) in the forthcoming years:-

a) Where the amount referred to in Sub-section (2) exceeds the limit referred to in Sub-section (3), the amount of such excess, and

b) The amount to the extent that the person referred to in clause (a) of Section 3 is not allowed to use tax adjustment for medical treatment because of being less the amount of tax payable by that person in that year.

Explanation: For purposes of this Section, "approved medical treatment expenditure" means the approved medical treatment expenditure as prescribed.

2) Distributions to be made by an entity shall be as mentioned in Section 53, and in distribution to be so made, tax shall be imposed on its beneficiaries pursuant to Section 54.

3) The amounts derived by and expenses borne by an entity shall be deemed to have been received or borne by the entity irrespective of whether or not the entity has derived the same or borne expenses for other person.

4) A property under ownership of an entity and the liability borne by it shall be deemed to be under ownership or burden of the entity. Such property under ownership and liability borne shall not be deemed to be under the ownership or burden of any other person.

5) Foreign income tax paid by the manager, beneficiary of an entity or the entity, whosoever, for the income of the entity shall be deemed to have been paid by the entity.

6) Transactions between any entity and its managers and beneficiaries shall be recognized subject to Chapter-7 and Section 45

a) Payment made by the entity to any of its beneficiaries in any capacity, or

b) Capitalization of profits.

2) Notwithstanding anything contained in Sub-section (1), any payment referred to in clause (a) of that Sub-section shall be deemed to have been distributed only in the following circumstances:-

a) Where the payment exceed the amount paid by a beneficiary to the entity in exchange for a consideration likely to be obtained from the entity, and

b) Where the following amounts are not included in the payment:-

(1) The amounts included in computing the income of the beneficiary,

(2) The payments from which tax has been deducted finally except for reason of distribution.

3) Only if the distribution of any entity reduces the value of property or liability of that entity, such distribution shall be deemed to be a distribution of profits or return of capital.

4) In any of the following circumstances, a distribution of any entity shall be deemed to be a distribution of profits, subject to Section 55:-

a) Where the distribution is of a type referred to in Sub-section (3) and the amount as per the market value of the property exceeds the total amount of capital contribution consisting of the market value of the liability of the entity at the time of distribution and of capitalized profits, as well,

b) Where profits are capitalized.

5) The distribution referred to in Sub-section (3) shall be deemed to be a return of capital to the extent of non-distribution of profits.

6) The distribution of any entity shall be deemed to be a dividend of that entity to the extent of non-return of capital.

Explanation: For purposes of this Section, "capitalization of profits" means and includes any capitalization made by issuing bonus share or similar other interest or increasing the paid up sum of the interest of that entity or crediting the profits to the premium and capital account of that entity.

a) Tax shall be imposed on a shareholder of any company as per the mode of final tax deduction, and

b) No tax shall be imposed on other entities.

2) The dividend distributed by any non-resident person to any resident beneficiary shall be included in the income of the beneficiary and tax imposed accordingly.

3) Notwithstanding anything contained in Sub-section (1), in cases where in distributing a dividend by a resident company to another resident company, except for a dividend distributed by a resident company to an organization enjoying tax exemption, the resident company receiving the dividend controls twenty-five per cent or more voting right of the resident company distributing the dividend, directly or indirectly through itself or one or more associated entities, no tax shall be charged on the dividend distributed to such a resident entit

4) Notwithstanding anything contained in Sub-section (3), that Sub-section shall not be applicable in the following circumstances:-

a) Dividend distributed to any company because of ownership of redeemable shares of the company distributing dividend.

b) Dividend referred to in Section 58.

5) The incomes referred to in Chapter-8 receivable for the interest of a beneficiary of an entity have to include the amount for capital return made by any entity for that interest.

Provided that, the dividend distributed by the entity need not to be included.

a) Where any distribution has been made by such entity in respect of cancellation, release or acceptance of the interest in that entity because of, inter alia, purchase by the entity of its interest or dissolution of the entity by following the process of law in force,

b) Where, except in cases of full dissolution, the rights of the beneficiaries in the portion of profits of that entity have not been computed in proper portion or could not be computed reasonably, and

c) Where the beneficiary who gets that distribution is not an associated person with the entity after the disposal.

2) Notwithstanding anything contained in Sub-section (1), that the provisions contained in that Sub-section and Section 53 shall not be applicable in cases where any entity purchases the interest of any beneficiary in the entity through the securities market recognized under the law in force and make distribution to that beneficiary.

a) The transferor of the property shall be deemed to have received, from the disposal, an amount equal to the market value of the property immediately before the disposal, and

b) The transferee of the property shall be deemed to have incurred cost in a sum equal to that mentioned in clause (a) in acquiring the property

2) If any liability is disposed through transfer of the liability between any entity and its beneficiary subject to Section 45, it shall be as follows:-

a) The transferor of the liability shall be deemed to have incurred cost, in disposing the liability, in a sum equal to the market value of the liability immediately before the disposal, and

c) The transferee of the liability shall be deemed to have received an amount equal to that mentioned in clause (a) in assuming the liability.

3) If any entity distributes dividends except profits as dividends to any beneficiary, the amount of such dividends shall be included in computing the income of the entity.

Provided that, provisions may be made to exclude the matters contained in this Sub-section in any circumstance as prescribed

2) If the ownership of an entity is changed as mentioned in Subsection (1), the entity shall not be allowed to carry out the following acts after such change:-

a) To deduct interest incurred by that entity prior to the change in ownership and carried forward pursuant to Sub-section (3) of Section 14,

b) To deduct the loss suffered by that entity prior to the change in ownership, pursuant to Section 20,

c) To carry back a loss suffered after the change in ownership in any income year before such change, pursuant to Sub-section (4) of Section 20, Section 59 or 60,

d) To make adjustment pursuant to Sub-section (4) of Section 24, in cases where it has been calculated for any amount or expenses pursuant to clause (a) of Sub-section (4) of Section 24 prior to the change in ownership, and correction has been made on that amount or expenses pursuant to clause (b) of Subsection (4) of Section 24 after the change in ownership,

e) To make adjustment pursuant to Sub-section (4) of Section 24, in cases where it has been calculated for any amount or expenses pursuant to clause (a) of Sub-section (4) of Section 24 prior to the change in ownership, and correction has been made on that amount or expenses pursuant to clause (b) of Subsection (4) of Section 24 after the change in ownership,

f) To subtract, pursuant to Section 36, the loss suffered in disposing any property or liability prior to the change in ownership from the income earned from the disposal of the property or liability after the change in ownership,

g) In cases where premium has been calculated pursuant to sub-clause (1) of clause (b) of Subsection (4) of Section 60, prior to the change in ownership and such premium has been returned to the insured after the change in ownership, to claim for credit accordingly, or

h) To carry forward in the forthcoming year the tax paid in respect of a foreign income prior to the change in ownership, pursuant to Section 71.

3) In cases where the ownership of any entity changes in any manner mentioned in Sub-section (1) in any income year, the parts before and after the change in ownership in that income year shall be treated as separate income years.

a) Where current or expected profits are reserved,

b) Where any person who acquires an interest of the entity and the recipient of the interest or his associated person makes any payment to the present or previous beneficiary of the entity or his associated person irrespective of whether or not it is related to the acquisition of interest and whether or not it is made at the time of acquisition of interest,

c) Where the payment is fully or partly reflected in the profits of the entity, or

d) Where the entity distributes dividends to the recipient of interest after the recipient of interest has acquired interest from the entity and the profits covers the dividends fully or partly.

2) In cases where dividends are distributed by any entity under an arrangement reducing dividend tax made pursuant to Sub-section (1), the arrangement shall be deemed to be as follows:-

a) The payment made by the recipient of interest or his/her associated person shall not be deemed as payment made by that person but as distribution by that entity of dividends to the previous or present beneficiary as referred to in clause (b).

b) The dividends distributed by that entity to the recipient of interest shall be deemed as equal to a sum to be set by subtracting the amount of payment said to have been made from the dividends as referred to in clause (a).

१क.) नेपाल राष्ट्र बैंकले तोकेको मापदण्डको अधीनमा रही बैंकि· व्यवसाय संचालन गर्ने व्यक्तिले जोखिम व्यहोर्ने कोषमा राखेको असुल हुन बा“की ऋण रकमको बढीमा पा“च प्रतिशतसम्मको रकमलाई खर्चको रूपमा कट्टी गरिनेछ । यसरी जोखिम व्यहोर्ने कोष कायम रहेको अवस्थामा नउठ्ने आसामी भनी मुनाफाबाट खर्च लेखिएमा मिन्हा हुने छैन र सो कोषमा रहेको रकम पू“जीकृत गरिएमा वा मुनाफा वा लाभांश बा“डफा“ड गरिएमा जुन वर्ष बा“डफा“ड गरिएको छ सोही वर्षको आयमा समावेश गरिनेछ ।
(२) कुनै व्यक्तिलाई कुनै आय वर्षमा बैंकिङ्ग व्यवसायबाट नोक्सान भएमा सो व्यक्तिले त्यस्तो नोक्सानी सो व्यवसायको विगतका पाँच आय वर्षहरुको आयबाट तोकिए बमोजिम छटाउन पाउनेछ ।

“तर उपदफा (१क.) बमोजिमको रकमलाई खर्चको रूपमा कट्टी गरेको भए त्यस्तो नोक्सानी घटाउन पाइने छैन ।” 

(३) उपदफा (२) बमोजिम नोक्सानी घटाउँदा देहाय बमोजिम भएको हुनु पर्नेछ ः–
(क) विगत आय वर्षमा सो व्यवसायबाट प्राप्त कुनै आयभन्दा बढी हुन नहुने,
(ख) कुल योग नोक्सानीको रकमभन्दा बढी हुन नहुने,
(ग) दफा २० को प्रयोजनको लागि कट्टा गर्न नपाएको नोक्सानीको रकम घट्ने ।
स्पष्टीकरण ः यस दफाको प्रयोजनको लागि “बैंकिङ्ग व्यवसाय” भन्नाले प्रचलित कानून बमोजिम बैंकिङ्ग कारेबार गर्न स्वीकृति प्राप्त बैंङ्क तथा वित्तीय संस्थाहरुले सञ्चालन गरेको बैंकिङ्ग कारोबार सम्झनु पर्छ ।

2) While computing the income of any person carrying on the insurance business in any income year, it shall be done as follows:-

a) In income, in addition to any other amounts required to be included, the following amounts, as well, have to be included:-

(1) Amounts for premium of insurance including premium for reinsurance received by that person from that business in that year, and

(2) Amounts received in that year from payments referred to in sub-clause (1) of clause (b) for any contract of reinsurance, security, guarantee or compensation.

b) b In expenses, in addition to the amounts that can be deducted, the following amounts, as well, may be deducted:-

(1) The payments made by that person as an insurer in operating that business in that year, and

(2) The premiums included pursuant to subclause (1) of clause (a) in computing the income earned from that business in that year or last year and returned to the insured in that year.

3) If any person suffers loss from the registered general insurance business in any income year, that person may subtract such loss, as prescribed, from the incomes of that business earned in last five income years.

4) In subtracting the loss pursuant to Sub-section (3), the following provisions shall apply:-

a) It shall not exceed any income earned from that business in the past income year,

b) It shall not exceed the total sum of loss,

c) The amount of loss that could not be deducted for purposes of Section 20 shall be lessened.

Explanation: For purposes of this Section, "registered general insurance business" means an insurance business registered in Nepal pursuant to the law in force and carrying on general business transactions.

2) It shall be as follows In computing the income of any person carrying on the investment insurance business in any income year, it shall be as follows:-

a) Except the following amounts, other amounts that can be included pursuant to this Act have to be included:

(1) Amounts reinsurance for premium of insurance including premium received by that person in operating that business in that income year, and

(2) Amounts received in that year from payments referred to in sub-clause (1) of clause (b) for any contract of reinsurance, security, guarantee or compensation.

b) Except the following amounts, other amounts that can be deducted pursuant to this Act have to be deducted:

(1) The payments made by any person as an insurer in operating that business, and

(2) The premiums returned to the insured referred to in sub-clause (1) of clause (a).

3) The amounts referred to in sub-clauses (1) and (2) of clause (a) of Sub-section (2) and sub-clauses (1) and (2) of clause (b) have to be included in the incomes and expenses for the property or liability of that person.

4) The investment insurance agreement of investment insurance business of any person shall not be deemed as the property and liability of that person.

2) Notwithstanding anything contained in Sub-section (1), the following provisions shall apply in respect of the profits made from investment insurance:-

a) In cases where a resident person makes payment of such amount, tax shall be imposed on the insured through final tax deduction, and

b) In cases where a non-resident person makes payment of such amount, it shall be computed by including that amount in the income of the insured.

Explanation: For purposes of this Section, "profits made from investment insurance" means the excess sums of payment received by any person for investment insurance in respect of that insurance over the premiums paid by that person.

“तर नागरिक लगानी कोष ऐन, २०४७ बमोजिम स्थापना भएको नागरिक लगानी कोषले अवकाष कोष राख्न चाहेमा त्यस्तो कोषले र कर्मचारी संचय कोष ऐन, २०१९ बमोजिम स्थापना भएको कर्मचारी संचय कोषले त्यस्तो कोषको लागि स्वीकृति लिनुपर्ने छैन ।” 

(३) उपदफा (२) मा जुनसुकै कुरा लेखिएको भए तापनि सो उपदफा बमोजिम कुनै आय वर्षमा कुनै व्यक्तिबाट घटाई पाउन दाबी गरिएको रकम तोकिएको अवकाश योगदानको सीमाभन्दा बढी हुने छैन ।

Provided that, ,-

(a) Contributions made to the fund shall not be the income of the fund and such contributions shall not be included in computation.

(b) Retirement payments shall not be the expenses of the fund and such payments shall not be deducted in computing the income.

(c) Interest of any beneficiary in the retirement fund shall not be a liability of the fund.

2) No tax shall be levied in the income of the retirement fund.

3) If any retirement fund ceases to remain in a form of such fund, such fund has to pay tax in a sum to be set, by the rate of tax applicable to companies, by subtracting the amount referred to in clause (b) from the amount referred to in clause (a).

a) All retirement contributions paid to the fund between the period from the date when the fund got approval as a retirement fund and the date when the recognition ceased to exist and all income amounts treated as taxable incomes in cases where Subsection (2) is not applicable,

b) All retirement payments made by the fund between the period from the date when the fund got approval as a retirement fund and the date when the recognition ceased to exist.

a) All retirement contributions made by the natural person in respect of the interest, and

b) Where tax has been paid from the fund pursuant to Sub-section (3) of Section 64, the amounts included in the incomes for that property pursuant to Subsection (2) during the period from the date when the fund got approval as a retirement fund to the date when the recognition ceased to exist.

Provided that, the above-mentioned amounts shall not be included in the expenses referred to in Section 38.

2) The incomes for any property remaining as an interest of any person in any approved retirement fund have to include the exemptions claimed by that person pursuant to Sub-section (2) of Section 63 for the retirement contributions made in respect of that interest.

a) The amounts with source in Nepal included in computing the income,

b) The amounts with source in Nepal deducted in computing the income.

2) In cases where in the loss suffered from any employment, business or investment of any person, the amounts mentioned in clause (a) exceed the amounts mentioned in clause (b), the amounts to the extent of such excess shall be deemed to have source in Nepal.

a) The amounts with source in Nepal to be deducted in computing the income of the business or investment,

b) The amounts with source in Nepal included in computing the income.

3) The amounts to be included in computing the income shall be deemed to have source in Nepal in the following circumstances:-

a) The net profits referred to in clause (c) of Subsection (2) of Section 7 or clause (b) of Sub-section (2) of Section 9 to be set by subtracting the loss suffered from the disposal of the property or liability with source in Nepal from the profit made from the disposal of the property or liability with source in Nepal,

b) In cases where a property situated in Nepal or a liability to be borne in Nepal is included, the profits and amounts to be included in computing the income as mentioned in clause (d) of Sub-section (2) of Section 7 or clause (c) of Sub-section (2) of Section 9,

c) Received payments with source in Nepal, subject to clauses (a) and (b).

4) In cases where a property situated in Nepal or a liability to be borne in Nepal is included, the source of profit or loss made or suffered from the disposal of the property or liability shall be deemed to have source in Nepal.

5) In cases where the following amounts are included in the amounts deducted in assessing the income, the source of such amounts shall be deemed to be in Nepal:-

a) The amount that can be deducted as cost expenditure mentioned in Sub-section (1) of Section 15 in respect of the properties situated in Nepal,

b) The expenses referred to in Sub-section (1) of Section 16 in respect of the properties situated in Nepal, and the expenses to the extent allowed to be deducted pursuant to Section 19, and

c) The payments with source in Nepal, subject to clauses (a) and (b).

6) The following payments shall be deemed to have source in Nepal:-

a) Dividends paid by a resident entity,

b) Interest paid by a resident person,

c) Payment for natural resources made in respect of the natural resource derived from the land situated in Nepal or calculated with reference to such source,

d) Rent paid for the use of any property situated in Nepal,

e) Royalty received by any person for having allowed any one to use any property situated in Nepal or accepting the right to use the property or the restriction on the use of such property,

f) Amount for the general insurance paid by any person in respect of insurance against risks in Nepal and premium paid to that person for general insurance,

g) Payments received by any person as follows by operating inland, sea or air transport or charter service business in Nepal except as a result of transshipment:

(1) The carriage of departing passengers, or

(2) The shipment of mail, livestock or other direct movable property.

h) Payments received by a person who carries a business of dispatching information or news through means of communication such as wire, radio, optical fiber or satellite in respect of dispatch of news or information through networks established in Nepal, irrespective of whether or not such news or information is originated in Nepal,

i) Payments in the following circumstances inclusive of service charges of the kinds not mentioned in clauses (g) or (h) for doing employment or rendering service or accepting restriction in those acts:

      (1) Where the acts are carried out in Nepal irrespective of the place of payment, or

     (2) Where Government of Nepal is to make payment irrespective of the place of such acts.

j) Annuities, amount for investment insurance and retirement pension paid by a resident person, which does not fall under clause (i), and any premium or other payment paid to the resident person in order to ensure such amounts,

k) Gifts received in respect of a business or investment operated from the property situated in Nepal, and

l) The following payments except those mentioned in clauses (a), (b), (c), (d), (e), (f), (g), (h), (i), (j) and (k), above:-

   (1) Payments made in respect of disposal of the property situated in Nepal or in respect of acquiring liability to be borne in Nepal, or

   (2) Payments made in respect of activities carried out in Nepal.

7) Any income, loss, amount, profit or payment except the one which is deemed to have source in Nepal as mentioned in the abovementioned Sub-sections, and the references to Nepal given in this Act shall be applicable as if they were used in the case of any particular foreign country for purposes of ascertaining as to which country such income, loss, amount, profit or payment has source in.

Explanation: For purposes of this Section,-

(a) "Property situated in Nepal" means the land or buildings situated in Nepal and the property other than land or building of a resident person situated in any foreign country or if the person is associated with a controlled foreign entity pursuant to Section 69, inclusive his interest in that entity.

(b) "Liability to be borne in Nepal" means the liability of a resident person.

2) The income of a person having ownership of a foreign permanent establishment shall be separated from the income of that establishment, pursuant to Section 69.

3) Tax shall be imposed on the permanent establishment referred to in clause (b) of Section 3 in the income sent abroad by the foreign permanent establishment of a non-resident person situated in Nepal.

4) The income sent abroad in any income year by the foreign permanent establishment of a non-resident person situated in Nepal shall be equal to the amount of dividends distributed by that foreign permanent establishment in that year.

a) As per the rights of the beneficiaries to the income in distributing dividends, or

b) If the rights are not certain in a reasonable manner, as per the method which the Department thinks appropriate according to the circumstance.

2) Tax shall not be levied on the dividends distributed by an entity as a controlled foreign entity at the end of any income year except those distributed pursuant to Sub-section (1).

3) The following shall be deemed to have occurred in respect of the dividends distributed by a controlled foreign entity pursuant to Subsection (1) to the beneficiaries associated with that entity at the time of distribution of dividends:-

a) Having the characteristic equivalent to the type and source of the associate income of that entity, and

b) Having distributed proportionately out of each type and source the associate income of that entity.

4) Any tax paid by any controlled foreign entity including that deemed to be paid pursuant to Sub-section (5) or Sub-section (5) of Section 52 in respect of the amounts deemed to be distributed pursuant to Sub-section (3) has to be set aside for the beneficiary associated with that entity.

5) The tax set aside pursuant to Sub-section (4) at the time of allocation shall be deemed to have been paid by the beneficiary, and the beneficiary may get facility of tax adjustment for such tax, as provided for in Section 71.

6) The amount to be deemed as distributed to the beneficiary pursuant to Sub-section (1) at the time of distribution has to be included in the expenses for any property or liability of the recipient beneficiary in the entity making such distribution.

7) The dividends distributed to the beneficiary enjoying tax exemption pursuant to Sub-section (2) at the time of distribution has to be included in the income for any property or liability of the recipient beneficiary as an interest in the entity making such distribution.

8) For purposes of this Act, the foreign income tax paid or foreign income tax deemed as paid by any controlled foreign entity pursuant to Sub-section (5) or Sub-section (5) of Section 52 shall be deemed as tax amount paid by that entity or deemed to be paid by that entity pursuant to this Act.

Explanation: For purposes of this Section,-

(a) "Associated income" means, in computing taxable income of any controlled foreign entity in any income year, a taxable income computed as if that entity were a resident entity.

(b) "Controlled foreign entity" means any non-resident entity in which any resident person has interest directly or indirectly through one or more interposed non-resident entities in any income year; and where that person is associated with that entity or where any person deemed to be associated with and any other resident persons not exceeding four persons are associated with that entity, it includes such entity, as well.

a) Carriage of passengers departing from Nepal, or

b) Carriage of the mail, animals or goods dispatched from Nepal.

2) The taxable income of any non-resident person who carries on a business of cable, radio, optical fiber or satellite communication in any income year shall consist of the amounts derived from the dispatch of news or information through any device established in Nepal, whether originated in Nepal or not.

3) Tax shall be levied on the amounts to be included in the taxable income of any non-resident person pursuant to Sub-section (1) or (2), at the rate specified in Sub-section (7) of Section 2 of Schedule-1.

Provided that, -

a) Those amounts need not to be computed in computing the tax payable in respect of any due taxable income of that person,

b) The expenses related with computation of those amounts shall not be allowed to be deducted in computing that due taxable income, and

c) That person shall not be entitled to any facility of tax adjustment from the amount of tax payable by that person.

Explanation: For purposes of this Section, "nonresident person" means a resident entity within the group of associated entities with head offices outside Nepal.

2) In computing the foreign tax adjustment claimed pursuant to Sub-section (1), it shall be done as follows:-

a) Separate computation has to be done for assessable foreign income having source in each country, and

b) Foreign tax adjustment claim shall not be made, in respect of the assessable foreign income, at the rate of tax higher than the average rate of tax of Nepal payable by that person in that year in respect of each computation.

3) Any foreign income tax paid in respect of the assessable foreign income of any year who is not entitled to foreign tax adjustment facility pursuant to Sub-section (1) by virtue of the limit provided for in clause (b) of Sub-section (2) may be dealt with as follows:-

a) It may be carried forward in the coming year, and

b) It shall be deemed to be paid in respect of the assessable foreign income in the future income year of the person having source in the country where such foreign income has been earned.

4) Notwithstanding anything contained in Sub-section (1), any person may give up a claim for foreign tax adjustment to which he is entitled in any income year and also claim for credit for foreign income tax for which such adjustment facility is available in that year.

Explanation: For purposes of this Section,-

(a) "Assessable foreign income" means the following income to be included in the assessable income earned by any resident person in any income year from any employment, business or investment:-

(1) Income earned from a foreign source, or

(2) Income of a non-resident person deemed as distributed to that resident person under Section 69 irrespective of the source.

(b) "Average rate of tax of Nepal" means the rate of tax of Nepal payable by the person referred to in clause (a) of Section 3 in any income year of the taxable income of that person in that year prior to adjustment of any foreign tax of that person in that year.

2) Government of Nepal may, by a notification in the Nepal Gazette, establish Inland Revenue Offices under the Department and prescribe their working areas, in order to render assistance to the Department in fulfilling the responsibility of the Department mentioned in Sub-section (1). The offices of which working areas have been so specified shall be deemed as organs of the Department.

3) The Department may have the officers and other employees as follows:-

a) Director General,

b) Deputy Director General, Chief Tax Administrator, Director, Chief Tax Officer, Tax Officer and other officer in the required number, and

c) Other employees.

4) The Director General may carry out the following functions, subject to the direction given by Government of Nepal:-

a) To exercise any of the powers conferred on the Department pursuant to this Act,

b) To so delegate the powers referred to in clause (a) as to be exercisable by any other officer subject to Sub-section (5) and (6),

c) To so specify that all or any of the powers referred to in clause (a), except the power to issue public circular pursuant to Section 75, to specify the document referred to in Section 77, to hold pending any reviewable decision or otherwise affect it pursuant to Sub-section (5) of Section 115, to accept or reject, fully or partly, the matters contained in an application made by any person pursuant to Sub-section (7) of Section 115, to make addition by adding offence pursuant to Section 129 or to grant authority to any officer pursuant to Section 82, to be exercisable by any officer employee of the civil Service.

5) Deputy Director General, Chief Tax Administrator, Director, Chief Tax Officer and Tax Officer who acts as the Chief of Office may carry out the following functions, subject to the direction given by Government of Nepal or the Director General:-

a) To exercise the powers conferred on the Department pursuant to this Act, other than the power to issue public circular pursuant to Section 75, to specify the document referred to in Section 77, to hold pending any reviewable decision or otherwise affect it pursuant to Sub-section (5) of Section 115, to accept or reject, fully or partly, the matters contained in an application made by any person pursuant to Sub-section (7) of Section 115, to make addition by adding offence pursuant to Section 129, and

b) To so delegate such powers as to be exercisable by any other officer of the Department subject to Subsection (6).

6) Any other officer of the department except the Director General, Deputy Director General, Chief Tax Administrator, Director, Chief Tax Officer or Tax Officer who acts as the Chief of Office may carry out the following functions:-

a) To exercise any powers delegated to that officer out of the powers conferred on the department, except the following powers:

(1) To issue public circular pursuant to Section 75, to specify the document referred to in Section 77, to hold pending any reviewable decision or otherwise affect it pursuant to Sub-section (5) of Section 115, to accept or reject, fully or partly, the matters contained in an application made by any person pursuant to Sub-section (7) of Section 115, to make addition by adding offence pursuant to Section 129, or

(2) To grant authorization to any officer pursuant to Section 82 or issue a notice pursuant to Section 109.

b) He/she shall not be entitled to re-delegate any power delegated to him/her.

2) This Sub-section shall be applicable in cases where, pursuant to any international agreement concluded with Nepal, the competent authority of the other country requests the Department to collect in Nepal the amount payable by any person who is in arrears of that amount, pursuant to the taxation law of that other country.

3) In cases where Sub-section (2) is applicable, the Department may, for the purpose of sending that amount to that competent authority, send a notice in writing to the person who is in arrears of tax and require him to pay such amount to the Department within the date mentioned in that notice.

4) This Sub-section shall be applicable in cases where any international agreement contains a provision under which Nepal has to exempt income or payment or has to apply the reduced tax rate to income or payment.

5) In cases where Sub-section (4) is applicable, any of the following entity shall not be entitled to enjoy tax exemption or tax deduction facility:-

a) An entity who is considered as a resident of the other party of the agreement for purposes of the agreement, and

b) Where Fifty percent or more portion of the vested ownership of that entity is owned by natural persons or by the entities in which any natural person has no interest and, for purposes of the agreement, the persons or entities are residents of both Nepal and of the other country party to the agreement.

Explanation: For purposes of this Section, "international agreement' means any treaty or agreement containing the following provisions, concluded with any foreign government and applicable to Nepal:

(a) To avoid double taxation and prevent fiscal evasion, or

(b) To render reciprocal administrative assistance in the implementation of tax liability.

2) The Department shall make available the circular issued pursuant to Sub-section (1) in the Department or in any other places as per necessity or through any other means.

3) The Department shall be compelled to take action according to the circular issued pursuant to Sub-section (1) unless and until such circular is revoked.

2) Notwithstanding anything contained in Sub-section (1), the Department shall not be entitled to issue an advance ruling referred to in Sub-section (1) on any matter of confusion occurred in the implementation of this Act in cases where such matter is sub judice in the court or has already been decided by the court.

3) In cases where any person acts as follows prior to the issuance of an advance ruling pursuant to Sub-section (1), the Department shall be compelled to implement this Act as per that ruling until the ruling issued to that person remains valid:-

a) If the full and actual statements of the matter related to that ruling are presented to the Department, and

b) f the arrangement corresponds to the point mentioned in the application made by that person for the ruling.

4) In cases where the public circular issued pursuant to Section 75 and the advance ruling issued pursuant to Sub-section (1) are mutually contradictory, priority shall be given to the matters mentioned in the advance ruling in the case of the person to whom such ruling has been issued.

5) Prior to the issuance of the advance ruling pursuant to Subsection (1), the Department may give an opportunity to the applicant to furnish further statements, if any, in person or through his representative.

2) The Department shall make available the formats referred to in Sub-section (1) in the Department and in any other places specified by the Department and through any other means.

2) The Department may order any person to mention his/her permanent account number in any income return, statement, version or other document to be used for purposes of this Act.

3) Government of Nepal may specify the circumstances where any person has to show or mention his/her permanent account number.

a) Where it is sent to the fax number or email address of that person,

b) Where it is delivered by hand to whom it has to be delivered or to the manager of an entity, in the case of the entity, or

c) Where it is sent by a registered post to his resident, office, business or other address to the extent known.

2) Any document so signed, encrypted or encoded through computer technology or written in it as indicating the name and designation of the competent authority of the Department and issued, served or given pursuant to this Act shall be deemed to have met requirements.

a) Where it is consistent with this Act substantially, and

b) Where the person who is addressed in a document is normally indicated in the document.

2) In cases where any documents issued by the Department pursuant to this Act contains any error and the error does not give rise to any dispute as to the interpretation of this Act or the fact of any specific person, the Department may make amendment in the document for purposes of rectifying such error.

a) To have full or unhindered access to any premises, places, documents or properties situated in Nepal, subject to the laws in force,

b) To obtain any portion of or duplicate copy of the document including an electronic copy of the documents to which there is an access pursuant to clause (a),

c) In cases where the concerned officer thinks that the document to which there is an access pursuant to clause (a) is an evidence that could be necessary to assess tax liability of any person pursuant to this Act, to take such document in his custody, and

d) In cases where any person having access to any document who is requested to provide a duplicate copy of such document does not provide it, and the officer thinks that such document is kept in any property in any form, to take such property in own custody in order to have access to such document.

2) No officer shall be entitled to exercise the powers referred to in Sub-section (1) without having authority in writing from the Department. In cases where, in entering to any premises or places in exercise by any officer of the powers referred to in Sub-section (1), the possessor of such premises or places or the person having access to any concerned document or property requests to show the authority of the Department, such officer has to show such authority to them.

3) In cases where any officer of the Department who enters to any premises or places in exercise of the powers referred to in Subsection (1) so requests, the possessor of such premises or places or the person having access to any concerned document or property has to provide all proper facilities and assistance for the effective use of the powers.

4) The Department may hold in its custody the document or property taken in its custody pursuant to clause (c) or (d) of Sub-section (1) until the following time:

a) In the case of any document taken in custody pursuant to clause (c) of Sub-section (1) until the time the document is required to assess tax liability of any person or for any other action pursuant to this Act, and

b) In the case of any property taken in custody pursuant to clause (d) of Sub-section (1), until the time when access to the document in question is gained and it is taken in custody.

5) The person whose document is taken in custody pursuant to Sub-section (4) may inspect such document and may obtain a copy of or copy down a portion of such document at his/her own cost within office hours and under supervision as prescribed by the Department.

6) Notwithstanding any provision made on privilege or public interest in respect of having access to the documents required for the implementation of this Act, the provisions contained in this Section shall apply in that respect.

Explanation: For purposes of this Section, "possessor" means, in respect of any premise or place, a person having ownership of, manager of the premise or place or any other person remaining there.

a) To submit any information specified in the notice within the time specified in the notice, also by preparing any document,

b) To be present at the Department in the place and time specified in the notice before the officer of the Department for inspection on the tax related matters of that person or any other person,

c) To submit, for purposes of inspection, any document mentioned in the notice that is under his control at the time when that person is examined pursuant to clause (b).

2) Any person who is to be examined pursuant to clause (b) of Sub-section (1) shall have the right to have legal or other representation during such examination.

3) Notwithstanding any provision made on any privilege or on public interest in respect of having access to the documents required for the implementation of this Act, the provisions contained in this Section shall apply in that respect.

2) Notwithstanding anything contained in Sub-section (1), any officer of the Department may disclose, as follows, the document or information referred to in Sub-section (1) to the following persons:-

a) To the extent that it is necessary to carry out the duty of that officer pursuant to this Act,

b) In cases where is so ordered by any court or tribunal in respect of administrative review or action pursuant to this Act,

c) Before the Minister for Finance ,

d) In cases where it is necessary to disclose for purposes of any other financial law,

e) In cases where it is necessary for any person in the service of Government of Nepal for any acts relating to revenue or statistics, before such a person,

f) In cases where it is necessary in the course of carrying out the duty, before the Auditor General or any person authorized by the Auditor General, or

g) Before the competent authority of the government of any country with which Government of Nepal has concluded an international agreement, to the extent as provided for in such agreement in that respect.

3) Any person, court, tribunal, body or official who obtains any document or information pursuant to Sub-section (2) shall keep secret such document or information except to the minimum extent required.

2) Tax required to be paid under this Act has to be paid in the following time, subject to Sub-section (1):-

a) In the case of one who has to pay by withholding advance tax, in the time mentioned Sub-section (4) of Section 90,

b) In the case of one who has to pay tax in installments, in the time mentioned in Sub-section (1) of Section 94,

c) In the case of one who has to pay the assessed tax-

(1) On the date when the income return is to be submitted in respect of assessment of tax referred to in Section 99,

(2) Within the time limit as specified in the tax assessment notice delivered pursuant to Section 102 in respect of tax assessed pursuant to Sub-section (2) of Section 99,

(3) Within the time limit as specified in the tax assessment notice delivered pursuant to Section 102 in respect of amended tax assessment made pursuant to Sub-section (2) of Section 99,

d) In respect of the amounts required to be paid to the Department as per any notice issued pursuant to Sub-section (8) of Section 104, Sub-section (1) of Section 109, or Sub-section (1) of Section 110, on the date mentioned in the notice,

e) In respect of a liability fixed upon failure of any entity to pay tax pursuant to Sub-section (2) of Section 107, at the same time when the entity has to pay tax,

f) In respect of the amounts required pursuant to Subsection (3) or (4) of Section 108, within seven days of the date on which the amounts are adjusted by auction sale gradually or on which the amounts cannot be so adjusted, and

g) In respect of the fees and interest assessed pursuant to Section 122, on the date as mentioned in the assessment notice.

3) The date on which tax has to be paid shall not be affected in the following circumstances:-

a) An action taken by the Department pursuant to Chapter-20 to recover tax, or

b) Other action has commenced, pursuant to this Act.

(a) Any action taken by the Department pursuant to Chapter-20 to recover tax, or

(b) Any action on any offense pursuant to Chapter-23.

2) The liability of an employer required to withhold tax pursuant to Sub-section (1) shall not decrease or end by virtue of the followings:-

a) In cases where the employer has the right or duty to deduct or hold up or subtract any other amount from the said payment, or

b) In cases where the income earned by the employee or worker from employment cannot be subtracted pursuant to other laws in force.

2) The amount referred to in Sub-section (1) shall be fixed also by adding any other payments, if any, made by such person or his/her associated person under the same contract to the person or his/her associated person entitled to payment under that contract in the past Ten days.

3) Notwithstanding anything contained in Sub-section (1), tax shall be withheld as follows from payment made by any resident person to any non-resident person under any contraction or contract:-

a) Where the Department has given that resident person a notice in writing, at the rate specified in the notice, or

b) As referred to in Sub-section (1) in any other circumstances.

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

a) Payment made by natural persons excepts the payments made in the course of operation of any business, or

b) Payments enjoying tax exemption or payments liable to tax withholding pursuant to Section 87 or 88.

a) Payment subject to tax withholding made by the person withholding tax to the person subject to tax withholding pursuant to Sections 87, 88 or 89 in that month,

b) Name, address of the person subject to tax withholding and the permanent account number in the case of one who has permanent account number,

c) Amount of tax withheld in making each payment except that mentioned in Sub-section (3), and

d) Any other information as specified by the Department.

2) The person withholding tax shall pay to the Department the amount of tax withheld or deemed to be withheld pursuant to Subsection (3), along with the statement referred to in Sub-section (1), within the time-limit referred to in Sub-section (1).

3) Even though the person liable to withhold tax has not withheld tax pursuant to Section 87, 88 or 89, the tax shall be deemed to withheld at the time when it has to be withheld.

4) The person withholding tax shall pay the amount of tax withheld pursuant to Section 87, 88 or 89 or deemed to be withheld pursuant to Sub-section (3); and in cases where Sub-section (5) is applicable, the person subject to tax withholding shall pay the tax within Fifteen days after the period referred to in Sub-section (1).

5) In cases where the person withholding tax does not withhold or pay tax as follows, both the person subject to tax withholding and the person withholding tax shall be jointly and severally liable to pay the amount of tax to the Department:

a) In cases where the person withholding tax does not withhold tax from any payment pursuant to Sections 87, 88 or 89, and

b) In cases where the person withholding tax does not pay to the Department the amount of tax deemed to be withheld pursuant to Sub-section (3) within the date on which tax has to be paid pursuant to Subsection (4).

6) In cases where the person withholding tax withholds tax and pays it to the Department pursuant to Sections 87, 88 or 89 and the person subject to tax withholding makes any claim as to that payment subject to tax withholding, that amount shall be treated as if it were paid to the person subject to tax withholding.

7) In cases where the person withholding tax pays to the Department the amount of tax not withheld pursuant to Sections 87, 88 or 89, he may recover the amount equal to the amount of tax so paid from the person subject to tax withholding.

a) Having been certified in accordance with the manner, if any, as prescribed by the Department,

b) Setting out the amount of tax withheld pursuant to Sections 87, 88 or 89 and the paid amounts.

2) The tax withholding certificate setting out the period of tax withholding has to be provided within Fifteen days from the date of expiration of the month in which tax is withheld.

3) Notwithstanding anything contained in Sub-section (1), in cases where tax is withheld pursuant to Section 87, the tax withholding certificate has to be provided as follows:-

a) The certificate shall be valid only for the period when the employee continues to serve in that income year.

b) The certificate has to be provided within Thirty days from the expiration of that year or in cases where the employee leaves employment in the person withholding the tax in that year, it has to be provided within thirty days from the date of his leaving employment.

(क) बासिन्दा कम्पनीले भुक्तानी गरेको लाभांश,

(ख) व्यवसाय सञ्चालन गरिरहेको बाहेक अन्य प्राकृतिक व्यक्तिलाई नेपालमा स्रोत भएको जग्गा वा घर र सोसंग गासिएका जडानहरु र उपकरणहरु बापत भुक्तानी गरेको भाडा ,

(ग) बासिन्दा व्यक्तिले लगानी बिमा बापत भुक्तानी गरेको लाभ,

(घ) बासिन्दा व्यक्तिले तिरेको स्वीकृत नलिएको अवकाश कोषको हित बापत भुक्तानी गरेको लाभ,

(ङ) दफा ८८ को उपदफा (३) मा उल्लेख भए बमोजिम बैंक, वित्तीय संस्था वा ऋणपत्र जारी गर्ने अन्य कुनै निकाय वा प्रचलित कानून बमोजिम सूचीकृत भएका कम्पनीले भुक्तानी दिएको व्याज,”

 (च) दफा ८७, ८८ वा ८९ बमोजिम गैर बासिन्दा व्यक्तिलाई दिइएको कर कट्टी हुनु पर्ने भुक्तानी ।

 “(छ) नेपाल सरकार वा स्वीकृत अवकाश कोषबाट भुक्तानी गरिएको अवकाश भुक्तानीहरू, र

 (ज) बैठक भत्ता ।”  

(२) अग्रिम कर कट्टी गर्ने व्यक्तिले वा कर कट्टी हुने व्यक्तिले अन्तिम रुपमा कट्टी हुने भुक्तानीबाट दफा ८७, ८८ वा ८९ बमोजिम कर कट्टी गरेको वा दफा ९० को उपदफा (३) बमोजिम कट्टी गरिएको भनी मानिएको कर रकम विभागलाई दाखिला गरेमा दफा ३ को खण्ड (ग) मा उल्लेख भए बमोजिमको व्यक्तिले कर दायित्व पूरा गरेको मानिनेछ । चैत्र महिनाको अन्त्यमा तिरिसकेको करभन्दा बढी हुन आउने अनुमानित करको ७०% आषाढ महिनाको अन्त्यमा तिरिसकेको करभन्दा बढी हुन आउने अनुमानित करको १०० %

स्पष्टीकरण ः यस उपदफाको प्रयोजनको लागि,–

(क) अनुमानित कर भन्नाले किस्ताबन्दीमा कर दाखिला गर्नु पर्ने कुनै व्यक्तिले कुनै वर्षको किस्ताबन्दी कर दाखिला गर्नु पर्ने समयमा दफा ९५ बमोजिम गणना गरेको किस्ताबन्दीको अनुमानित कर सम्झनु पर्छ ।

(ख) तिरिसकेको कर भन्नाले देहायको कुल जम्मा सम्झनु पर्छ ।

(१) सम्बन्धित किस्ता दाखिला गर्नु पर्ने मिति अगाडि यस दफा बमोजिम पूर्व किस्ताद्धारा सो आय वर्षमा दाखिला गरेको कर रकम,

(२) सो आय वर्षमा सम्बन्धित किस्ता दाखिला गर्नु पर्ने मिति अगाडि कुनै व्यक्तिको परिच्छेद–१७ बमोजिम सो वर्षँमा सो व्यक्तिको आय गणना गर्दा समावेश हुने भुक्तानीहरुबाट कट्टी भएको कर रकम,

(३) किस्ता बुझाउनु पर्ने मितिभन्दा अगाडि सो वर्षमा कर कट्टी गर्ने एजेण्ट वा कर कट्टी हुने व्यक्तिले उपखण्ड (२) मा उल्लिखित भुक्तानीबाट दफा ९० को उपदफा (३) बमोजिम कर कट्टी भएको मानिने रकम विभागमा दाखिला गरेको भए त्यस्तो कर रकम, र

 (४) किस्ता बुझाउनु पर्ने मितिभन्दा अगाडि सो व्यक्तिले गरेको स्वीकृत औषधि उपचार खर्चको सम्बन्धमा सो व्यक्तिले दफा ५१ बमोजिम दाबी गर्न सक्ने औषधी उपचार खर्चको कर मिलान रकम ।

(२) उपदफा(१) मा जुनसुकै कुरा लेखिएको भए तापनि सो उपदफा बमोजिम बुझाउनु पर्ने किस्ताको रकम दुई हजार रुपैयाँभन्दा कम भएमा त्यस्तो किस्ताको रकम बुझाउनु पर्ने छैन । (३)   किस्ता दाखिला गर्ने व्यक्तिले यस दफा बमोजिम कुनै आय वर्षमा किस्ताबन्दीका  माध्यमबाट दाखिला गरेको कर रकम सो वर्षमा लाग्ने कर बापत कट्टी गर्न पाउनेछ । 

2) In cases where any tax is withheld from any payment except the payment from which tax is withheld finally, the person subject to tax withholding shall be deemed to have paid the amount of tax as follows:-

a) The amount of tax withheld from payment pursuant to Sections 87, 88 or 89,

b) In cases where the person withholding tax or the person subject to tax withholding pays to the Department the amount of tax referred to in Subsection (3) of Section 90 or the amount of tax deemed to have been withheld from payment, such amount.

3) The person subject to tax withholding may make a claim for adjustment of the amount referred to in Sub-section (2) only to the amount of tax payable in the income year in which that payment is made.

Date on which payment has to be made                                               Amount to be paid

By the end of Poush                                                               40% of the estimated tax which 

          (mid January)                                                                exceeds the already paid tax

By the end of Chaitra                                                               70% of the estimated tax which

(mid April)                                                                                  exceeds the already paid tax

By the end of Ashad                                                            100% of the estimated tax  which

    (mid July)                                                                            exceeds the already paid tax

Explanation: For purposes of this Sub-section,-

(a) "Estimated tax" means the estimated tax in installment computed by any person liable to pay tax in installment pursuant to Section 95 at the time when the installment tax is to be paid in any year.

(b) "Already paid tax" means the following total sum:-

    (1) The amount of tax paid in that income year by a prior installment before the date on which the installment in question is to be paid,

    (2) The amount of tax deducted from the payments to be included in computing the income of any person in any income year pursuant to Chapter-17 before the date on which the installment in question is to be paid in that year,

    (3) In cases where the agent withholding tax or the person subject to tax withholding pays to the Department the amount of tax deemed to be withheld from the payment referred to in clause (2) pursuant to Sub-section (3) of Section 90 in that year before the date on which the installment is to be paid, such amount of tax, and

    (4) The amount of tax adjustment for medical treatment expenses which that person may claim pursuant to Section 51 in respect of the accepted medical treatment expenses incurred by that person before the date on which the installment is to be paid.

2) Notwithstanding anything contained in Sub-section (1), in cases where the amount of installment to be paid pursuant to that Subsection is less than Two Thousand Rupees, amount of such installment need not to be paid.

3) The person paying installment shall be allowed to deduct the amount of tax paid by way of installment in any year pursuant to this Section for the tax chargeable in that year.

(घ) अनुसूची–१ को दफा १ को उपदफा (१०) बमोजिम कर दाखिला गर्ने सवारीसाधन धनी प्राकृतिक व्यक्ति भएमा त्यस्तो प्राकृतिक व्यक्ति ।

2) The department may extend, at one time or several times, the time limit for a period not exceeding three months to submit the income return pursuant to Sub-section (1).

a) The amount of tax mentioned in the income return and payable by the person mentioned in Clauses (a) and (b) of Section 3 in that income year, and

b) The amount of tax mentioned in the income rerun and due and payable in that year.

2) In cases where any person does not submit the income return of any income year, tax shall be deemed to have been assessed as follows on the due date for submission of the tax return until the tax return is submitted:-

a) The amount of tax payable by that person in that year shall be equal to the sum of the amount of tax deducted from the amount received pursuant to Chapter-17 and the amount paid in installment for that year pursuant to Chapter-18, and

b) Tax shall not be deemed due and payable as per tax assessment.

2) Notwithstanding anything contained in Sub-section (1), in the circumstances mentioned in Sub-section (5) of Section 96, the Department may, based on the following amounts, assess the tax of that person in a justifiable manner:-

a) The amounts mentioned in sub-clauses (1), (2), (3) and (4) of clause (a) of Sub-section (2) of Section 96, for any income year or any part of that year,

b) The amounts due and payable under sub-clause (5) of clause (a) of Sub-section (2) of Section 96, for any income year or any part of that year.

3) The following provision shall be applicable in cases where tax is assessed pursuant to Sub-section (1) or (2 ):-

a) A person whose tax is assessed for the whole income year is not required to submit the income return referred to in Sub-section (1) of Section 96 for that income year, or

b) A person whose tax is assessed for a portion of any income year is required to submit the income return referred to in Sub-section (1) of Section 96 for that income year.

4) The amount of tax paid as per the assessment of tax for a portion of any income year may be adjusted to the tax chargeable as per the assessment of tax for the whole year.

5) In assessing the tax pursuant to this Section, the Department has to give a time limit of Seven days for the submission of proof and evidence for defense.

2) In cases where the Department thinks it proper to re-amend the amended tax assessment made pursuant to Sub-section (1), it may amend it, for as many times as it deems appropriate on reasonable grounds.

3) The Department shall, in assessing the tax pursuant to Subsection (1) or (2), complete assessment within Four months from the following date:-

a) In cases where tax is assessed pursuant to Section 99, the due date for the submission of income returns,

b) In cases where tax is assessed pursuant to Subsection (2) of Section 100, the date on which the tax assessment notice is given to the person whose tax is assessed,

c) In cases where tax is assessed pursuant to Subsection (1) or (2), the date mentioned in clause (a) or (b) related with the previous tax assessment that has been amended pursuant to Sub-section (1).

4) Notwithstanding anything contained in Sub-section (3), in cases where the tax of any person has been assessed in a wrong manner due to fraud, the Department may amend such tax assessment at any time. Such amendment has to be made no later than one year of receipt of information that details have been given or tax assessed fraudulently.

5) Notwithstanding anything contained in Sub-section (3), in cases where the tax assessment is amended or the assessed tax is lessened by the Revenue Tribunal or other competent courts, the Department shall not be able to amend such tax assessment to that extent.

Provided that, in cases where an order has been issued to reexamine it, it shall not be deemed to bar the making of amendment.

6) In making amendment to tax assessment pursuant to this Section, the Department has to give that person a notice in writing clearly setting out the grounds for such amendment and a time limit of Seven days for the submission of proof and evidence for defense on such assessment of tax

      (a) The assessed tax to be paid and due and payable by the person mentioned in clauses (a) and (b) of Section 3 for the income year or period related with assessment of tax,

      (b) The method of computation of tax in the tax assessment as mentioned

           in clause (a),

     (c) The reasons why the Department has to assess the tax,

     (d) The time for payment of the assessed tax due and payable, and

     (e) The time, place and mode for making a petition in cases where one is not satisfied with the assessment of tax.

2) The following provisions shall apply in respect of the tax withheld by a person who has to withhold tax pursuant to Chapter-17:-

a) The tax withheld by such a person as well as the property, if any, received for such tax shall be deemed to have been withheld for Government of Nepal,

b) The amount of tax so withheld cannot be attached to the loan or liability of such a person, and

c) In cases where the person withholding such tax becomes bankrupt or is dissolved, the amount of tax so withheld shall not be treated as a part of the assets so become bankrupt or dissolved; and in making division upon such dissolution or bankruptcy, the Department shall have the first lien over the tax withheld or over the property.

2) In claiming the property over which the lien is created pursuant to Sub-section (1), the Department has to give that person a written notice setting out the following matters:-

a) Description of the property claimed,

b) Limit of the claim referred to in Sub-section (3),

c) Tax related to the claim, and

d) Other matters, if any.

3) In making claim over the property pursuant to Sub-section (2), the claim shall be created only to the extent of the tax due and payable by such a person, interest and claim to be paid in respect of such tax pursuant to Section 119 and the expenses incurred in auction sale.

4) The claim made pursuant to Sub-section (2) shall not lie unless and until the following matter takes place:-

a) Until the Department gives information to have the claim registered pursuant to Sub-section (6) in respect of the building and land,

b) Until the Department possesses such property pursuant to Sub-section (3) of Section 105 in respect of other direct/tangible property, and

c) Until the notice referred to in Sub-section (2) is given to the person who is in arrear of tax, in any other circumstances whatsoever.

5) In cases where the person who is in arrear of tax pays to the Department all the amounts referred to in Sub-section (3) and covered by the claim made pursuant to Sub-section (2), which are due and payable by such a person.

6) In cases where the Department makes a claim over any land or building pursuant to Sub-section (2), information has to be given to the concerned Land Revenue Office; and that Office has to so withhold such land or property that it cannot be sold and disposed of to or ownership to it cannot be transferred to any person.

7) In cases where the claim over the land and building has to be released pursuant to Sub-section (5), the Department has to give information thereof to the Land Revenue Office. Upon receipt of such information, the Land Revenue Office has to release the land and building so withheld.

8) The Department has to promptly give the person in arrear of tax a notice setting out the following matters, in respect of the expenses to be incurred pursuant to Sub-section (3):

a) The expenses incurred by the Department for the claim on the property of the person in arrear of tax and for the auction sale thereof, prior to giving such a notice, and

b) The date on which the person in arrear of tax has to pay such expenses to the Department.

Explanation: For purposes of this Section, "expenses incurred for claim and auction sale" means the following expenses incurred or to be incurred by the Department:

(a) The expenses incurred or to be incurred by the Department in creating or releasing the claim over the property, or

(b) The expenses incurred or to be incurred by the Department pursuant to Section 105 in possessing, holding and auctioning the claimed property.

2) The notice given pursuant to Sub-section (1) may be included in the notice given pursuant to Sub-section (2) of Section 104 or attached with such a notice. Such a notice has to clearly set out the following matters and be given to the person in arrear of tax:-

a) The property claimed and the mode and time of auction or sale of the property, and

b) In respect of a tangible property, mode and place of possessing the property by the Department.

3) After the Department has given the notice referred to in Subsection (1) or (2) to the person in arrear of tax, it may do as follows:-

a) To have possession of the tangible property mentioned in the notice at any time,

b) To enter into any premises mentioned in the notice referred to in Sub-section (1) for the purpose of having possession of the tangible property at any time,

c) In respect of the tangible property except the land or building, to keep such properties in such place as thought proper by the Department at the expense of the person in arrear of tax.

4) In cases where the Department has given the notice referred to in Sub-section (1) to the person in arrear of tax, it may, in the following time, publicly auction such claimed property or sell and dispose of or use such property in such manner as thought proper:

a) If the claimed property is the land or building, after thirty days of the date of possession of such property pursuant to Sub-section (3),

b) If the claimed property is a perishable tangible property, after one day of the date of possession pursuant to Sub-section (3),

c) If the claimed property is a tangible property except those properties mentioned in clause (a) or (b), after ten days of possession pursuant to Sub-section (3), and

d) If the claimed property is any other kind of property, after ten days of possession of such property pursuant to Sub-section (3).

5) The expenses incurred in having claim and auctioning the property auctioned shall first be deducted from the proceeds derived from the auction sale pursuant to Sub-section (4). After the expenses are so deducted, the payable tax and the interest payable on the tax pursuant to Section 119 shall be deducted; and then, if any amount remains balance, such amount shall be refunded to the person in arrear of tax.

6) After the proceeds derived from the auction sale have been adjusted pursuant to Sub-section (5), the Department has to give a written notice setting out the process of the adjustment to the person in arrear of tax.

7) In cases where, in adjusting the proceeds derived from the auction sale by following the process referred to in Sub-section (5), the proceeds are not sufficient to fully pay the amounts for the expenses mentioned in that Sub-section, tax and interest, the Department has to re-institute the action to recover the shortfall amount pursuant to Section 104, 111 or this Section.

Explanation: For purposes of this Section,

     (a) "Claimed property" means the property of the person withholding tax, who is in arrears of tax, mentioned in Sub-section (2) of Section 103 or Sub-section (2) of Section 104.

     (b) "Expenses incurred in making claim and auction sale" means the expenses incurred in making claim and auction sale pursuant to Section 104.

     (c) "Person in arrear of tax" includes the person withholding tax mentioned in Sections 103 and 104.

2) In cases where any entity does not pay tax on the date due for payment of tax, all officers who are incumbent in that entity for the time being or incumbent until before six months shall be jointly and severally liable to pay that tax.

3) Notwithstanding anything contained in Sub-sections (1) and (2), these Sub-sections shall not be applicable in the following circumstances:-

a) Where the entity has committed such offense without knowledge and consent of such person, and

b) Where that person has, in order to avoid such offense, observed or exercised care, effort and skill which a reasonable man would observe or exercise in similar circumstances.

4) In cases where any person pays the tax required to be paid pursuant to Sub-section (2), that person may do as follows:-

a) To recover the amount which he has so paid from that entity,

b) For purposes of clause (a), to so hold under own control the property including the moneys of that entity which is under his possession or which may come under his possession that it is not in excess of the amount so paid.

5) In cases where any person holds any property under his control pursuant to clause (b) of Sub-section (4), the entity or any other person shall not be entitled to make any claim against such person.

Explanation: For purposes of this Section, "officer of any entity" means the manager of that entity or any person who acts in that capacity.

2) The Department has to give a written notice to the person in arrear of tax on the amount to be paid.

3) On receipt of the notice referred to in Sub-section (1), the recipient has to do as follows:-

a) To set aside the amount notified by the Department under Sub-section (2) after making payment of the loan, if any, which is preferential to the tax payable pursuant to Sub-section (2), subject to clause (c) of Sub-section (2) of Section 103, from the proceeds of the sale of the required portion of the property which have come under possession of the recipient, and

b) To pay to the Department the amount so set aside for his tax liability on behalf of the person in arrear of tax.

4) It shall be the personal liability of the recipient to pay to the Department the amount equal to the tax liability payable by such person in arrear of tax to the extent that no amount has been set aside by the recipient pursuant to Sub-section (3).

5) Provided that, the recipient may recover from the person in arrear of tax the amount of tax paid.

Explanation: For purposes of this Section,-

     (a) "Recipient" means any of the following persons:

          (1) A liquidator,

          (2) A person appointed from outside or by a court as a recipient in respect of any property or entity,

           (3) A person possessing a property by mortgage,

           (4) Heir apparent, administrator or manager of the property belonging to a deceased natural person, or

           (5) A person looking after the affairs of an incapacitated natural person.

      (b) "Person in arrear of tax" means the person whose property has come under possession of the recipient.

a) The person who has to pay amount to the person in arrear of tax,

b) The person who holds money for or on behalf of the person in arrear of tax,

c) The person who holds money on behalf of any third person in a manner to pay it to the person in arrear of tax, or

d) The person who has got authority from the third party to pay the amount to the person in arrear of tax.

2) The Department has to give a copy of the notice given to the payer pursuant to Sub-section (1) to the person in arrear of tax

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

a) The date on which the amount has to be paid to the person in arrear of tax or the date on which such amount has been held on his behalf, and

b) The date on which the notice has been given pursuant to Sub-section (2).

4) The amount paid by the payer pursuant to Sub-section (1) shall be deemed as paid to the person in arrear of tax. The person in arrear of tax or any other person shall not be allowed to claim such amount against the payer.

2) In cases where any person pays the amount of tax as per the order referred to in Sub-section (1), he may do as follows:-

a) To recover the amount of such payment from the person in arrear of tax,

b) For purposes of clause (a), to take under his control any property whatsoever, including the money belonging to the person in arrear of tax, which is or would come in his possession, in such a manner that it is not in excess of the amount so paid.

3) In cases where any person takes possession of any property pursuant to clause (b) of Sub-section (2), the person in arrear of tax or any other person shall not be allowed to make any claim against such a person.

2) Notwithstanding anything contained in Sub-section (1), Government of Nepal may remit, in full or in part, the fee or interest imposed pursuant to Chapter-22.

2) In cases where the tax in question is not to be paid along with the interest paid by any person pursuant to Section 119, the Department has to refund such interest to that person.

3) Any person has to make an application to the Department, as prescribed, for the refund of the amount pursuant to Sub-section (1).

4) The person who makes an application pursuant to Sub-section (3) has to make such application within two years from the latest date out of the following dates. In cases where an application is not made within that time-limit, the amount referred to in Sub-section (1) shall not be refunded:-

a) The date of expiration of the income year existed by virtue of payment of the excess amount,

b) The date on which the excess amount is paid, or

c) The date on which is the case is decided.

5) The Department has to give a notice in writing of the decision made by it on the application made pursuant to Sub-section (3).

6) In refunding any amount of tax by the Department to any person by virtue of the order of a court or any other reason, the Department has to pay to such a person the interest as per the normal rate for the following period:-

a) In cases where such tax refund is related to the excess tax adjustment available to any person in any income year pursuant to Sections 93, 94 or 100, the period between the due date for submission of the tax return pursuant to Section 96 and the date of tax refund, and

b) In any other cases, the period between the date of payment by such person of the refundable tax and the date of tax refund.

7) Tax deduction that can be claimed pursuant to Section 51 or 71 shall not be adjusted in any year, and such tax deduction shall not be adjusted in amounts or refunded pursuant to this Sub-section.

Provided that, in that year the tax deduction adjustment may be made in accordance with the provisions contained in Sub-section (2) of Section 4, Sub-section (4) of Section 51 and Sub-section (3) of Section 71.

a) Advance ruling issued by the Department pursuant to Section 76,

b) Estimate made by the Department on, or decision made by it to estimate, the estimated tax payable by any person, pursuant to Sub-section (7) of Section 95,

c) Decision made by the Department to order any person to submit the income return pursuant to Subsection (5) of Section 96 or Section 97,

d) Decision made by the Department on any application made by any person for the extension of the time-limit for submission of the income return pursuant to Section 98,

e) Assessment of tax payable by any person for any income year pursuant to Section 100 or 101 or assessment of the fees and interest payable by any person pursuant to Section 122,

f) Notice given by the Department requiring to set aside the amounts as receivable by any person as a recipient, pursuant to Sub-section (2) of Section 108,

g) Decision made by the Department to order any person who holds moneys payable to the person in arrear of tax to pay the same to the Department pursuant to Sub-section (1) of Section 109,

h) Decision made by the Department to order any person to pay tax of any person due and payable on behalf of a non-resident person pursuant to Subsection (1) of Section 110,

i) Decision made by the Department on any application made by any person for the refund of tax pursuant to Sub-section (5) of Section 113, and

j) Decision made by the Department on any application made by any person for the extension of the time-limit for filing a complaint pursuant to Sub-section (3) of Section 115.

2) Notwithstanding that the Department makes any decision on the matters mentioned in clauses (d), (i) and (j) of Sub-section (1), in cases where the Department does not give a notice of the decision to the applicant within thirty days after the making of the application pursuant to Section 98, Sub-section (3) of Section 113 or Sub-section (3) of Section 115, the decision may be subject to administrative review as if it were a decision to reject the application.

3) In cases where the applicant does receive a notice of decision within the time-limit referred to in Sub-section (2) and registers information thereof with the Department, the decision made by the Department to reject the application mentioned in that Sub-section and notice thereof shall be deemed to have been served on that person on that date.

2) The application as referred to in Sub-section (1) has to clearly set out the reasons and grounds for such review.

3) In cases where the time limit for making application pursuant to Sub-section (1) expires and any person makes an application for the extension of time limit within Seven days from the date of expiration of the time limit, the Department may do as follows:-

a) To extend the time limit for a period not exceeding Thirty days from the date of expiration of the time limit for making application pursuant to Subsection (1), where there are reasonable reasons, and

b) To give the applicant a written notice of the decision made by the Department on the application.

4) The implementation of the decision mentioned in Sub-section (1) of Section 114 shall not be deemed to be affected from the making of application pursuant to Sub-section (1).

5) Notwithstanding anything contained in Sub-section (4), the Department may hold in pending or otherwise affect the decision made pursuant to Sub-section (1) of Section 114 pending the settlement of the application made by any person pursuant to Sub-section (1).

6) Notwithstanding anything contained in Sub-section (5), the provision contained in that Sub-section shall not apply until Fifty percent of the amount of tax payable is paid.

7) The Department may do as follows on the application made by any person pursuant to Sub-section (1):-

a) To accept or reject, fully or partly, the matters mentioned in the application, and

b) To give a written notice of the decision on the application.

8) In cases where the Department does not give the applicant a notice of the application within Ninety days from the date on which the application was made pursuant to Sub-section (1), the applicant may register information thereof with the Department and consider the application rejected by the Department.

9) The concerned applicant has to give written information to the Department that he has considered the application as rejected pursuant to Sub-section (8). The decision made by the Department to reject such application and notice thereof shall be deemed to have been served on that person on the date on which such information was registered.

2) The person who files an appeal pursuant to Sub-section (1) has to register a copy of the appeal with the Department within Fifteen days of the date of filing appeal.

3) The implementation of the decision mentioned in Sub-section (1) of Section 114 shall not be deemed to be affected from the filing of an appeal pursuant to Sub-section (1).

4) Notwithstanding anything contained in Sub-section (1) of Section 114, in cases where the Director General has made a decision subject to administrative review as mentioned in that Sub-section, an appeal may be filed to the Revenue Tribunal.

a) The estimated or amended amount of tax computed by the person required to pay tax in installment pursuant to Section 95 in respect of the installment tax to be paid in any year pursuant to section 94,

b) The amount of tax to be set by ninety percent of the amount of tax to be paid by the person referred to in clauses (a) and (b) of Section 3 in that year.

2) A fee in a sum to be set by the normal rate of interest, for each month and portion of the month, from the due date for payment of the first installment in that year until the date on which the tax is assessed and becomes due and payable pursuant to Section 99 shall be imposed on the person referred to in Sub-section (1).

3) In cases where the amount referred to in clause (a) is higher than the amount referred to in clause (b), interest shall be charged, pursuant to Sub-section (2), on such higher amount by the normal rate on the amount of each period.

a) In cases where the estimate or revised estimate of the total amount to be paid by any person in installment for each installment period in any income year is accurate, Ninety percent of the amount,

b) The amount of installments paid in that income year.

2) For purposes of computing the interest to be paid pursuant to Sub-section (1), interest shall not be exempted in the extended time-limit given pursuant to Section 98.

3) The person withholding tax shall not be allowed to recover the interest payable by him because of his failure to observe Sub-section (4) of Section 90 from the person subject to tax withholding.

     (a) In cases where it has become false or misleading not by knowingly or recklessly but by mistake, Fifty percent of the less amount resulted therefrom.

    (b) In cases where it has become false or misleading knowingly or recklessly, One Hundred percent of the less amount resulted therefrom.

Explanation: For purposes of this Section, "statement submitted to the Department" means any statement submitted in writing to the Department or to the officer authorized by the Department in the course of performing the duty pursuant to this Act and includes the statement submitted as follows:-

(a) Application, notice, description, complaint, deposition, or other document submitted, prepared, given or furnished pursuant to this Act,

(b) Document submitted to the Department or any officer of the department except under this Act,

(c) Reply to any question asked by the Department or any officer to any person, or

(d) Information given by any person who has reasonable knowledge of the matter to be informed to the Department or any officer through any other person.

2) In computing the liability for the fee and interest chargeable where any particular act has not been performed or chargeable in respect of any statement pursuant to this Chapter, it shall be computed separately in the case of each section of this Chapter.

3) The fee and interest chargeable pursuant to this Section shall be added to any other tax, if any, payable pursuant to this Act; and mere payment of such fee and interest shall not be deemed as the release of any person from the liability related to criminal proceedings mentioned in Chapter-23.

4) In cases where the fee and interest have been assessed pursuant to this Section, the Department shall give a written notice of the assessment, setting out the following matters, to that person. Such notice may be attached to and sent along with the notice to be issued pursuant to Section 102:

a) The reasons why the Department has to assess the fee and interest,

b) The amount for the fee and interest payable,

c) The method how the amount has been computed,

d) The time, place and mode for making a compliant against the assessment.

5) It shall be as follows in assessing the fee and interest pursuant to this Section:-

a) The matters contained in Sub-section (1), Subsection (2), clause (b) of Sub-section (3), Sub section (4) and (5) of Section 101 shall also be applicable in assessing the fee and interest pursuant to this Section, and

b) The matters contained in clauses (b) and (c) of Subsection (3), Sub-sections (4) and (5) of Section 101 and Section 102 shall also be applicable in the case of Sub-section (4) of this Section.

Explanation: For purposes of this Section, "any information or statement submitted to the Department" means the statement/details mentioned in the explanation referred to in Section 120.

a) To obstruct the officer of the Department in the course of carrying out his duty pursuant to this Act,

b) Not to act as per the notice referred to in Section 83, or

c) To obstruct in any other manner in the implementation of this Act.

2) Any person who attempts to commit an act referred to in Subsection (1) shall be punished with half a punishment mentioned in that Sub-section.

2) In cases where any person who is not authorized under this Act collects tax or any other amount in the name of tax or attempts to collect the same, such a person shall be punished with a fine of a sum from eighty Thousand Rupees to two hundred Thousand Rupees or with imprisonment for a term from one year to three years or with both penalties .

Provided that, if such an accomplice is a governmental employee, he shall be liable to punishment equal to the punishment imposed on the offender.

2) In making the order referred to in Sub-section (1), the Department has to set out in such an order such offense, the amount of fine to be paid and the date for payment of the amount of fine.

3) The order made by the Department pursuant to this Section shall be final and no appeal may be made against it.

2) In conducting investigation pursuant to Sub-section (1), the investigating officer shall seek advice and opinion of the government attorney.

2) The following Acts are hereby amended as follows:-

a) Section 15 of the National Loans Act, 2017 (1960) is hereby repealed.

b) Amendment to the Employee Provident Fund Act, 2019 (1962): The words "no tax of any kind except income tax shall be levied" shall be substituted for the words "no tax of any kind shall be levied" contained at the end of clause (b) of Section 18 of the Employee Provident Fund Act 2019 (1962).

c) Amendment to the Nepal Petroleum Act, 2040 (1984): Clause (c) of Section 13 of the Nepal Petroleum Act, 2040 (1984) is hereby deleted.

d) Amendment to Section 29 of the Retirement Fund Act, 2042 (1986): The words "no tax of any kind except income tax shall be levied" shall be substituted for the words "no tax of similar other kind shall be levied" contained in Section 29 of the Retirement Fund Act, 2042 (1986).

e) Amendment to Section 51 of the Citizen Investment Fund Act, 2047 (1991): Section 51 of the Citizen Investment Fund Act, 2047 (1991) is hereby repealed.

f) Amendment to Section 30 of the Nepal Academy for Science and Technology Act, 2048 (1991): Section 30 of the Royal Nepal Academy for Science and Technology Act, 2048 (1991) is hereby repealed.

g) Amendment to Section 15 of the Industrial Enterprises Act, 2049 (1992):

(1) Clauses (c), (d), (e), (j), (l), (p), (q), (r), (s), (t) of Section 15 of the Industrial Enterprises Act, 2049 (1992) are hereby deleted.

(2) The words " respectively Thirty, TwentyFive and Twenty percent on the income tax until ten years of the date of operation and" are hereby deleted.

h) Amendment to the Foreign Investment and Technology Transfer Act, 2049 (1992): Sub-section (1a.) of Section 5 of the Foreign Investment and Technology Transfer Act, 2049 (1992) is hereby deleted.

I) Amendment to the B. P. Koirala Health Science Institute Act, 2049 (1992): The word "income-tax" contained in the second line of Section 21 of the B. P. Koirala Health Science Institute Act, 2049 (1992) is hereby deleted.

J) Amendment to the Tribhuvan University Act, 2049 (1992): Sub-section (2) of Section 33 of the Tribhuvan University Act, 2049 (1992) is hereby deleted.

K) Amendment to the Electricity Act, 2049 (1992):

(1) The word "income-tax" contained in the heading of Section 12 of the Electricity Act, 2049 (1992) is hereby deleted.

(2) Sub-sections (1), (2), (3), (4), (5) and (6) are hereby deleted.

L) Amendment to the Pokhara University Act, 2053 (1996): Sub-section (2) of Section 36 of the Pokhara University Act, 2053(1996) is hereby deleted.

M) Amendment to Section 18 of the B. P. Koirala Memorial Cancer Hospital Act, 2053 (1996): The word "income-tax" contained in Sub-section (1) of Section 18 of the B. P. Koirala Memorial Cancer Hospital Act, 2053 (1996) is hereby deleted.

n) Amendment to the Town Development Fund Act, 2053 (1996): Section 24 of the Town Development Fund Act, 2053 (1996) is hereby repealed.

o) Sub-section (1) of Section 34 of the Telecommunications Act, 2053(1996) is hereby repealed.

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

4) The provisions of the Income Tax Act, 2031(1974) shall apply to the provisions relating to the assessment and collection of income tax for the income year prior to the commencement of this Act.

(१) कुनै आय वर्षमा बासिन्दा प्राकृतिक व्यक्तिको करयोग्य आयमा यस अनुसूचीको उपदफा (२) र (४) का अधीनमा रही देहाय बमोजिमको दरले कर लाग्नेछ ः–
(क) पैसठ्ठी हजार रुपैयाँसम्म करयोग्य आय भएमा कर नलाग्ने,
(ख) पैसठ्ठी हजार रुपैयाँभन्दा बढी तर एकलाख चालीस हजार रुपैयाँसम्म करयोग्य आय भएमा पैसठ्ठी हजार रुपैयाँभन्दा बढी करयोग्य आयमा पन्ध्र प्रतिशत, र
(ग) एक लाख चालीस हजार रुपैयाँभन्दा बढीको करयोग्य आय भएमा एकलाख चालीस हजार रुपैयाँ सम्मको करयोग्य आयमा रु. ११,२५०।– र एक लाख चालीस हजार रुपैयाँभन्दा बढी भएको करयोग्य आयमा पच्चीस प्रतिशत ।

(२) कुनै आय वर्षमा दफा ५० बमोजिम छनौट गर्ने कुनै दम्पत्तिको करयोग्य आयमा यस अनुसुचीको उपदफा (४) को अधीनमा रही देहाय बमोजिमको दरमा कर लाग्नेछ ः–
(क) पचासी हजार रुपैयाँसम्म करयोग्य आय भएमा कर नलाग्ने,
(ख) पचासी हजार रुपैयाँभन्दा बढी तर एकलाख साठी हजार रुपैयाँसम्म करयोग्य आय पचासी हजार रुपैयाँभन्दा बढी करयोग्य आयमा पन्ध्र प्रतिशत, र
(ग) एक लाख साठी हजार रुपैयाँभन्दा बढी करयोग्य आय भएमा एक लाख साठी हजार रुपैयाँसम्मको करयोग्य आयमा रु ११,२५०।– र एक लाख साठी हजार रुपैयाँभन्दा बढी भएको करयोग्य आयमा पच्चीस प्रतिशत ।

(३) यस अनुसूचीको उपदफा (४) मा उल्लिखित व्यवस्था देहायको अवस्थामा लागू हुने ः–
(क) बासिन्दा प्राकृतिक व्यक्तिको सम्बन्धमा कुनै आय वर्षमा पैसठ्ठी हजार रुपैयाँभन्दा बढी आय भएको वा दफा ५० बमोजिमको छनौट नगरेको बासिन्दा दम्पतीको सम्बन्धमा कुनै आय वर्षमा पचासी हजार रुपैयाँभन्दा बढी आय भएको, र 
(ख) गैर–व्यावसायिक करयोग्य सम्पत्तिको निसर्गबाट प्राप्त खूद लाभ सो प्राकृतिक व्यक्ति वा दम्पतीको आय र तदअनुरुप करयोग्य आयको गणनामा समावेश भएको ।

(४) यस अनुसूचीको उपदफा (३) को अधीनमा रही देहायका व्यक्तिलाई देहाय बमोजिम कर लाग्नेछ ः–
(क) देहायका रकममध्ये जुन बढी छ सो रकममा सो प्राकृतिक व्यक्ति वा दम्पतीको सो मात्र करयोग्य आय भए सरह मानी यस अनुसूचीको उपदफा (१) वा (२) बमोजिमको दरले कर लाग्नेछ ः–
(१) सो प्राकृतिक व्यक्ति वा दम्पतीको जम्मा करयोग्य आयबाट सो लाभको रकम घटाई बाँकी हुन आउने रकम, वा 
(२) प्राकृतिक व्यक्तिको सम्बन्धमा पैसठ्ठी हजार रुपैयाँ वा दम्पतीको सम्बन्धमा पचासी हजार रुपैयाँ ।
(ख) सो करयोग्य आयको बाँकी रकममा दश प्रतिशतका दरले कर लाग्नेछ ।

(५) श्री ५को सरकारले तोकेको दुर्गम क्षेत्रमा बसोबास गर्ने प्राकृतिक व्यक्तिहरुको लागि यस अनुसूचीको उपदफा (१), (२), (३) र (४) मा उल्लिखित कर नलाग्ने सीमाको रकम पैसठ्ठी हजार रुपैयाँ र पचासी हजार रुपैयाँमा दुर्गम भत्ता बापत तोकिए बमोजिम बढीमा तीसहजार रुपैयाँसम्म वृद्धि गर्न सकिनेछ ।

(६) यस ऐनको दफा ४ को उपदफा (४) बमोजिमको सीमा एक लाख रुपैयाँ आय र दश लाख रुपैयाँ बराबरको कारेबार हुनेछ ।

(७) यस ऐनको दफा ४ का उपदफा (४) बमोजिम करको रकम देहाय बमोजिमको हुनेछ ः–
(क) महानगरपालिका वा उपमहानगरपालिका क्षेत्रमा व्यवसाय गर्ने प्राकृतिक व्यक्तिका हकमा दुईहजार रुपैयाँ,
(ख) नगरपालिका क्षेत्रमा व्यवसाय गर्ने प्राकृतिक व्यक्तिका हकमा एक हजार पाँच सय रुपैयाँ,
(ग) अन्य कुनै स्थानमा व्यवसाय गर्ने प्राकृतिक व्यक्तिका हकमा एक हजार रुपैयाँ ।

(८) गैर बासिन्दा प्राकृतिक व्यक्तिको कुनै आय वर्षको करयोग्य आयमा पच्चिस प्रतिशतका दरले कर लाग्नेछ ।

(९) यस दफामा अन्यन्त्र जुनसुकै कुरा लेखिएको भए तापनि कुनै बासिन्दा प्राकृतिक व्यक्तिको लागि उपदफा (१) को खण्ड (क) वा दम्पत्तिको लागि उपदफा (२) को खण्ड (क) मा उल्लिखित रकम को पच्चीस प्रतिशत थप रकम करयोग्य आयबाट घटाई बाँकी रहने रकममा मात्र यस दफा बमोजिम करको गणना गरिनेछ ।

(१०) यस दफामा अन्यन्त्र जुनसुकै कुरा लेखिएको भए तापनि भाडाका सवारी साधन धनीहरूबाट देहाय बमोजिमको वार्षिक कर असुल गरिनेछ । सवारी साधन धनी प्राकृतिक व्यक्ति भएमा यसरी तिरेको कर नै अन्तिम हुनेछ ।  

सवारीको किसिम                 प्रति सवारी साधनमा बुझाउनु पर्ने वार्षिक कर

 (अ) मिनिवस, मिनि ट्रक, ट्रक र बस     रू. १,५००।–  

(आ) कार, जिप, भ्यान, माइक्रो बस     रू. १,२००।–

 (इ) थ्रि ह्विलर, अटो रिक्सा, टेम्पो         रू. ८५०।–  

(ई) टे«क्टर र पावर टिलर             रू. ७५०।–

(१) कुनै आय वर्षमा बासिन्दा प्राकृतिक व्यक्तिको करयोग्य आयमा यस अनुसूचीको उपदफा (२) र (४) का अधीनमा रही देहाय बमोजिमको दरले कर लाग्नेछ ः–
(क) पैसठ्ठी हजार रुपैयाँसम्म करयोग्य आय भएमा कर नलाग्ने,
(ख) पैसठ्ठी हजार रुपैयाँभन्दा बढी तर एकलाख चालीस हजार रुपैयाँसम्म करयोग्य आय भएमा पैसठ्ठी हजार रुपैयाँभन्दा बढी करयोग्य आयमा पन्ध्र प्रतिशत, र
(ग) एक लाख चालीस हजार रुपैयाँभन्दा बढीको करयोग्य आय भएमा एकलाख चालीस हजार रुपैयाँ सम्मको करयोग्य आयमा रु. ११,२५०।– र एक लाख चालीस हजार रुपैयाँभन्दा बढी भएको करयोग्य आयमा पच्चीस प्रतिशत ।

(२) कुनै आय वर्षमा दफा ५० बमोजिम छनौट गर्ने कुनै दम्पत्तिको करयोग्य आयमा यस अनुसुचीको उपदफा (४) को अधीनमा रही देहाय बमोजिमको दरमा कर लाग्नेछ ः–
(क) पचासी हजार रुपैयाँसम्म करयोग्य आय भएमा कर नलाग्ने,
(ख) पचासी हजार रुपैयाँभन्दा बढी तर एकलाख साठी हजार रुपैयाँसम्म करयोग्य आय पचासी हजार रुपैयाँभन्दा बढी करयोग्य आयमा पन्ध्र प्रतिशत, र
(ग) एक लाख साठी हजार रुपैयाँभन्दा बढी करयोग्य आय भएमा एक लाख साठी हजार रुपैयाँसम्मको करयोग्य आयमा रु ११,२५०।– र एक लाख साठी हजार रुपैयाँभन्दा बढी भएको करयोग्य आयमा पच्चीस प्रतिशत ।

(३) यस अनुसूचीको उपदफा (४) मा उल्लिखित व्यवस्था देहायको अवस्थामा लागू हुने ः–
(क) बासिन्दा प्राकृतिक व्यक्तिको सम्बन्धमा कुनै आय वर्षमा पैसठ्ठी हजार रुपैयाँभन्दा बढी आय भएको वा दफा ५० बमोजिमको छनौट नगरेको बासिन्दा दम्पतीको सम्बन्धमा कुनै आय वर्षमा पचासी हजार रुपैयाँभन्दा बढी आय भएको, र 
(ख) गैर–व्यावसायिक करयोग्य सम्पत्तिको निसर्गबाट प्राप्त खूद लाभ सो प्राकृतिक व्यक्ति वा दम्पतीको आय र तदअनुरुप करयोग्य आयको गणनामा समावेश भएको ।

(४) यस अनुसूचीको उपदफा (३) को अधीनमा रही देहायका व्यक्तिलाई देहाय बमोजिम कर लाग्नेछ ः–
(क) देहायका रकममध्ये जुन बढी छ सो रकममा सो प्राकृतिक व्यक्ति वा दम्पतीको सो मात्र करयोग्य आय भए सरह मानी यस अनुसूचीको उपदफा (१) वा (२) बमोजिमको दरले कर लाग्नेछ ः–
(१) सो प्राकृतिक व्यक्ति वा दम्पतीको जम्मा करयोग्य आयबाट सो लाभको रकम घटाई बाँकी हुन आउने रकम, वा 
(२) प्राकृतिक व्यक्तिको सम्बन्धमा पैसठ्ठी हजार रुपैयाँ वा दम्पतीको सम्बन्धमा पचासी हजार रुपैयाँ ।
(ख) सो करयोग्य आयको बाँकी रकममा दश प्रतिशतका दरले कर लाग्नेछ ।

(५) श्री ५को सरकारले तोकेको दुर्गम क्षेत्रमा बसोबास गर्ने प्राकृतिक व्यक्तिहरुको लागि यस अनुसूचीको उपदफा (१), (२), (३) र (४) मा उल्लिखित कर नलाग्ने सीमाको रकम पैसठ्ठी हजार रुपैयाँ र पचासी हजार रुपैयाँमा दुर्गम भत्ता बापत तोकिए बमोजिम बढीमा तीसहजार रुपैयाँसम्म वृद्धि गर्न सकिनेछ ।

(६) यस ऐनको दफा ४ को उपदफा (४) बमोजिमको सीमा एक लाख रुपैयाँ आय र दश लाख रुपैयाँ बराबरको कारेबार हुनेछ ।

(७) यस ऐनको दफा ४ का उपदफा (४) बमोजिम करको रकम देहाय बमोजिमको हुनेछ ः–
(क) महानगरपालिका वा उपमहानगरपालिका क्षेत्रमा व्यवसाय गर्ने प्राकृतिक व्यक्तिका हकमा दुईहजार रुपैयाँ,
(ख) नगरपालिका क्षेत्रमा व्यवसाय गर्ने प्राकृतिक व्यक्तिका हकमा एक हजार पाँच सय रुपैयाँ,
(ग) अन्य कुनै स्थानमा व्यवसाय गर्ने प्राकृतिक व्यक्तिका हकमा एक हजार रुपैयाँ ।

(८) गैर बासिन्दा प्राकृतिक व्यक्तिको कुनै आय वर्षको करयोग्य आयमा पच्चिस प्रतिशतका दरले कर लाग्नेछ ।

(९) यस दफामा अन्यन्त्र जुनसुकै कुरा लेखिएको भए तापनि कुनै बासिन्दा प्राकृतिक व्यक्तिको लागि उपदफा (१) को खण्ड (क) वा दम्पत्तिको लागि उपदफा (२) को खण्ड (क) मा उल्लिखित रकम को पच्चीस प्रतिशत थप रकम करयोग्य आयबाट घटाई बाँकी रहने रकममा मात्र यस दफा बमोजिम करको गणना गरिनेछ ।

(१०) यस दफामा अन्यन्त्र जुनसुकै कुरा लेखिएको भए तापनि भाडाका सवारी साधन धनीहरूबाट देहाय बमोजिमको वार्षिक कर असुल गरिनेछ । सवारी साधन धनी प्राकृतिक व्यक्ति भएमा यसरी तिरेको कर नै अन्तिम हुनेछ ।  

सवारीको किसिम                 प्रति सवारी साधनमा बुझाउनु पर्ने वार्षिक कर

 (अ) मिनिवस, मिनि ट्रक, ट्रक र बस     रू. १,५००।–  

(आ) कार, जिप, भ्यान, माइक्रो बस     रू. १,२००।–

 (इ) थ्रि ह्विलर, अटो रिक्सा, टेम्पो         रू. ८५०।–  

(ई) टे«क्टर र पावर टिलर             रू. ७५०।–