- Preamble
- Section 1 Short title and commencement
- Section 2 Definitions
- Section 3 Tax to be levied
- Section 4 Computation and rate of tax
- Section 5 Taxable income and classification of income headings
- Section 6 Assessable income
- Section 7 Computation of income from business
- Section 8 Computation of income earned from employment
- Section 9 Computation of income earned from investment
- Section 10 Exemptible amounts
- Section 13 General deduction:
- Section 14 Interest deduction:
- Section 15 Allowances for cost of stock-in-trade:
- Section 11A Tax on construction and operation of infrastructure
- Section 16 Repair and maintenance expenses:
- Section 17 Pollution control expenses:
- Section 18 Research and development expenses:
- Section 11 Professional discounts and benefits
- Section 19 Depreciation deduction expenses:
- Section 12 Donation, gift given to organizations entitled to tax exemption:
- Section 19A Exemption of special expenses for providing employment
- Section 20 Loss from business or investment:
- Section 21 Expenses that may not be deducted:
- Section 22 Method of tax accounting:
- Section 23 Cash basis accounting:
- Section 24 Accrual basis accounting:
- Section 25 Reverse of the amounts including bad debts:
- Section 26 Method of deriving the average of the amounts includible and deductible under a long-term contract:
- Section 27 Quantification of amounts:
- Section 28 Conversion in money:
- Section 29 Indirect payments:
- Section 30 Investment under joint ownership:
- Section 31 Characterization of payment for compensation:
- Section 32 Characterization of payment under annuities, installment sale and financial lease:
- Section 33 Price transferring and other arrangements between associated persons:
- Section 34 Division of income:
- Section 35 General rule against tax avoidance:
- Section 36 Net profits from property and liability:
- Section 37 Profit and loss made from property and liability:
- Section 38 Expenses and net expenses for property and liability:
- Section 39 Income and net income for property and liability:
- Section 40 Disposal of property or liability:
- Section 41 Disposal along with retention of property or liability:
- Section 42 Disposal through installment sale or financial lease:
- Section 43 Transfer of property to husband, wife or former husband, wife:
- Section 44 Transfer of property after death:
- Section 45 Transfer between associated persons and other non-market transfers:
- Section 46 Involuntary disposal of property or liability with substitution:
- Section 47 Disposal upon amalgamation of property and liability:
- Section 48 Disposal of property and liability through division:
- Section 49 Disposal through allocation of incomes and expenses:
- Section 50 Spouse:
- Section 51 Tax adjustment for medical treatment:
- Section 52 Principles of taxation applicable in respect of entities:
- Section 53 Distribution by entity:
- Section 54 Tax in dividend:
- Section 55 Dissolution of entity:
- Section 56 Transaction between entity and beneficiary:
- Section 57 Change in control:
- Section 58 Provision restricting reduction of dividend tax:
- Section 59 Banking business:
- Section 60 General insurance business:
- Section 61 Investment insurance business:
- Section 62 Amount received from insurance:
- Section 63 Approval of retirement fund:
- Section 64 Tax in retirement fund:
- Section 65 Retirement payments:
- Section 66 Expenses and incomes for interest in retirement fund:
- Section 67 Source of income, loss, profit and payment:
- Section 68 Foreign permanent establishments:
- Section 69 Controlled foreign entities:
- Section 70 Tax chargeable on non-resident person providing water traveling/rafting, air transport or telecommunications service in Nepal:
- Section 71 Foreign tax adjustment:
- Section 72 Department:
- Section 73 International agreements:
- Section 74 Taxpayer's rights:
- Section 75 Public circular:
- Section 76 Advance ruling:
- Section 77 Format of documents:
- Section 78 Permanent account number:
- Section 79A Permanent Account No. Deferral
- Section 79 Service of documents:
- Section 80 Defective documents:
- Section 81 To maintain records or documents:
- Section 82 Powers of Department to obtain information:
- Section 83 Power to obtain information by notice:
- Section 84 Governmental secrecy:
- Section 85 Time, place and mode of payment of tax:
- Section 86 Evidence of payable tax:
- Section 87 Withholding of tax by employer:
- Section 88 Withholding of tax in making payment for investment return and service charge:
- Section 89 Tax withholding in making payment of contraction or contract:
- Section 89A Tax deduction on payment of value added tax invoice
- Section 94 Payment of tax in installment:
- Section 90 Statement and payment of tax withheld:
- Section 95 Return of estimated tax to be paid
- Section 91 Tax withholding certificate:
- Section 96 Income return:
- Section 92 Payment from which tax is withheld finally:
- Section 97 Submission of income return not required:
- Section 93 Adjustment facility and inclusion of tax not to be withheld finally:
- Section 98 Extension of time-limit for submission of income return:
- Section 99 Assessment of tax:
- Section 100 Self-assessment of tax:
- Section 101 Amended tax assessment:
- Section 102 Tax assessment notice:
- Section 103 Security for tax payable by withholding:
- Section 104 Lien over property:
- Section 105 Auction sale of the claimed property:
- Section 106 To prevent departing from the Nepal:
- Section 107 Officer employee of entity to be made responsible:
- Section 108 Recovery of tax from recipient:
- Section 109 Recovery of tax from the person liable to pay tax:
- Section 110 Recovery of tax from the agent of a non-resident person:
- Section 111 Institution of case on failure to pay tax:
- Section 114 Decisions subject to administrative review, and procedures:
- Section 112 Remission:
- Section 115 Application for administrative review:
- Section 113 Tax refund and adjustment of amount:
- Section 116 Appeal in the Revenue Tribunal:
- Section 117 Fees to be charged in cases where documents are not maintained or return or income return is not submitted:
- Section 118 Fees to be charged in cases where the person making payment in installments makes lesser payment of estimated tax:
- Section 119 Interest to be charged in cases where tax is not paid:
- Section 120 Fee to be charged on the person who submits false or misleading statement:
- Section 121 Fee to be imposed on accomplice:
- Section 122 Assessment of fee and interest:
- Section 123 Penalty to one who does not pay tax:
- Section 124 Penalty to one who submits false or misleading statement:
- Section 125 Penalty to one who obstructs or unduly influences tax administration:
- Section 126 Penalty in the event of commission of offence by the person with or without authority:
- Section 127 Penalty to accomplice:
- Section 128 Penalty to one who does not observe the Act:
- Section 129 Power of Department to pay amount of fine:
- Section 130 To be state cases:
- Section 131 Investigation and filing of cases:
- Section 133 Departmental action to be taken:
- Section 134 Identity card of officer:
- Section 135 Powers of court of law to be vested:
- Section 136 Not to be responsible for an act done in good faith:
- Section 137 Power of Government of Nepal to give order or direction:
- Section 138 Power to frame Rules:
- Section 139 Power to make and enforce manuals
- Section 140 Alteration in Schedules:
- Section 141 Police to render assistance:
- Section 142 This Act to prevail on tax provision:
- Section 143 Repeal, amendment and saving:
- Schedule-1 Rates of Tax
- Schedule-2 Assessment of Depreciation Deduction
- Preamble
- Section 10 : Exemptible amounts
- Section 11 : Professional exemptions and facilities:
- Section 11B : Concessions on infrastructure development projects of national importance
- Section 12c : Seed given to start-up businesses
- Section 12B : Expenses contributed to the Prime Minister's Disaster Relief Fund and the Reconstruction Fund established by the Government of Nepal
- Section 11B : Concessions on infrastructure development projects of national importance
- Section 11A : Tax on construction and operation of infrastructure
- Section 11A : Tax on construction and operation of infrastructure
- Section 12A : Expenditure on heritage conservation and sports development
- Section 11 : Professional discounts and benefits
- Section 12 : Donation, gift given to organizations entitled to tax exemption:
- Section 13 : General deduction:
- Section 14 : Interest deduction:
- Section 15 : Allowances for cost of stock-in-trade:
- Section 16 : Repair and maintenance expenses:
- Section 17 : Pollution control expenses:
- Section 18 : Research and development expenses:
- Section 19 : Depreciation deduction expenses:
- Section 19A : Exemption of special expenses for providing employment
- Section 20 : Loss from business or investment:
- Section 21 : Expenses that may not be deducted:
- Section 11A : Tax on construction and operation of infrastructure
- Section 22 : Method of tax accounting:
- Section 23 : Cash basis accounting:
- Section 24 : Accrual basis accounting:
- Section 25 : Reverse of the amounts including bad debts:
- Section 26 : Method of deriving the average of the amounts includible and deductible under a long-term contract:
- Section 27 : Quantification of amounts:
- Section 28 : Conversion in money:
- Section 29 : Indirect payments:
- Section 30 : Investment under joint ownership:
- Section 31 : Characterization of payment for compensation:
- Section 32 : Characterization of payment under annuities, installment sale and financial lease:
- Section 33 : Price transferring and other arrangements between associated persons:
- Section 34 : Division of income:
- Section 35 : General rule against tax avoidance:
- Section 36 : Net profits from property and liability:
- Section 37 : Profit and loss made from property and liability:
- Section 38 : Expenses and net expenses for property and liability:
- Section 39 : Income and net income for property and liability:
- Section 40 : Disposal of property or liability:
- Section 41 : Disposal along with retention of property or liability:
- Section 42 : Disposal through installment sale or financial lease:
- Section 43 : Transfer of property to husband, wife or former husband, wife:
- Section 44 : Transfer of property after death:
- Section 45 : Transfer between associated persons and other non-market transfers:
- Section 46 : Involuntary disposal of property or liability with substitution:
- Section 47 : Disposal upon amalgamation of property and liability:
- Section 47A : Special arrangement due to merger of business
- Section 48 : Disposal of property and liability through division:
- Section 49 : Disposal through allocation of incomes and expenses:
- Section 52 : Principles of taxation applicable in respect of entities:
- Section 53 : Distribution by entity:
- Section 54 : Tax in dividend:
- Section 55 : Dissolution of entity:
- Section 56 : Transaction between entity and beneficiary:
- Section 57 : Change in control:
- Section 58 : Provision restricting reduction of dividend tax:
- Section 67 : Source of income, loss, profit and payment:
- Section 68 : Foreign permanent establishments:
- Section 69 : Controlled foreign entities:
- Section 70 : Tax chargeable on non-resident person providing water traveling/rafting, air transport or telecommunications service in Nepal:
- Section 71 : Foreign tax adjustment:
- Section 72 : Department:
- Section 73 : International agreements:
- Section 74 : Taxpayer's rights:
- Section 75 : Public circular:
- Section 76 : Advance ruling:
- Section 77 : Format of documents:
- Section 78 : Permanent account number:
- Section 79A : Permanent Account No. Deferral
- Section 79 : Service of documents:
- Section 80 : Defective documents:
- Section 87 : Withholding of tax by employer:
- Section 88 : Withholding of tax in making payment for investment return and service charge:
- Section 88A : Karkatti on windfall benefits
- Section 89B : Curtailment of capital gains
- Section 89 : Tax withholding in making payment of contraction or contract:
- Section 89A : Tax deduction on payment of value added tax invoice
- Section 89A : Deduction of tax on gains from naturalization of interests in resident entities
- Section 89A : Tax deduction on payment of value added tax invoice
- Section 90 : Statement and payment of tax withheld:
- Section 91 : Tax withholding certificate:
- Section 92 : Payment from which tax is withheld finally:
- Section 93 : Adjustment facility and inclusion of tax not to be withheld finally:
- Section 110A : Collection of arrears of tax on installments
- Section 103 : Security for tax payable by withholding:
- Section 104 : Lien over property:
- Section 105 : Auction sale of the claimed property:
- Section 106 : To prevent departing from the Nepal:
- Section 107 : Officer employee of entity to be made responsible:
- Section 108 : Recovery of tax from recipient:
- Section 109 : Recovery of tax from the person liable to pay tax:
- Section 110 : Recovery of tax from the agent of a non-resident person:
- Section 110C : The person receiving the actual return is liable to pay the tax
- Section 110B : Tax liability of joint ventures
- Section 110A : Recovery of arrears of tax in installments
- Section 111 : Institution of case on failure to pay tax:
- Section 112 : Remission:
- Section 113 : Tax refund and adjustment of amount:
- Section 117 : Fees to be charged in cases where documents are not maintained or return or income return is not submitted:
- Section 118 : Fees to be charged in cases where the person making payment in installments makes lesser payment of estimated tax:
- Section 119 : Interest to be charged in cases where tax is not paid:
- Section 119A : chargeable
- Section 120 : Fee to be charged on the person who submits false or misleading statement:
- Section 121 : Fee to be imposed on accomplice:
- Section 122 : Assessment of fee and interest:
- Section 123 : Penalty to one who does not pay tax:
- Section 124 : Penalty to one who submits false or misleading statement:
- Section 125 : Penalty to one who obstructs or unduly influences tax administration:
- Section 126 : Penalty in the event of commission of offence by the person with or without authority:
- Section 127 : Penalty to accomplice:
- Section 128 : Penalty to one who does not observe the Act:
- Section 129 : Power of Department to pay amount of fine:
- Section 130 : To be state cases:
- Section 131 : Investigation and filing of cases:
- Section 132 : Power to have expert's service:
- Section 133 : Departmental action to be taken:
- Section 134 : Identity card of officer:
- Section 135 : Powers of court of law to be vested:
- Section 136 : Not to be responsible for an act done in good faith:
- Section 136A : No penalty fee
- Section 136A : Arrangement of Prizes
- Section 137 : Power of Government of Nepal to give order or direction:
- Section 138 : Power to frame Rules:
- Section 139 : Power to make and enforce manuals
- Section 140 : Alteration in Schedules:
- Section 141A : Taxable
- Section 141A : Mr. 5 will be taxed
- Section 141 : Police to render assistance:
- Section 142 : This Act to prevail on tax provision:
- Section 143 : Repeal, amendment and saving:
Section 45 : Transfer between associated persons and other non-market transfers: | Income Tax Act, 2058 (2002)
Section 45 : Transfer between associated persons and other non-market transfers:
1) If any person disposes any property by transferring it to an associated person or any other person for no consideration, the following provisions shall apply:-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.
