Income Tax Return Filing Online

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Every person/business who register in PAN/VAT has to file Income Tax Return Filing. Income Tax Return is mandatory for each person whose enroll under the VAT/PAN Registration.There is a lot of the type of the  Returns which you have to file the monthly basis with one annual return. A registered personal have to file the returns about the following things –

#1 Total Sales of the Month
#2 Total Output VAT
#3 Total Purchase of the Month
#4 Total Input VAT Credit Tax

Nepal Tax Facts, Entrepreneurs should know

It may not be always possible for all the Entrepreneurs to have proper Knowledge of Tax Laws applicable in the Country in which they have started their Business. Moreover, For few Complex Tax Issues it is always advisable to consult with their Auditors, Accountants or Tax Consultants. But Gaining Knowledge about few Important Tax Aspects/Issues helps entrepreneurs to save lot of money and time.

Advance Tax

Liability to Pay Advance Tax arises if the Estimated Tax Liability after giving credit to the Withholding Tax is Rs. 5,000 or more. Estimated Tax Liability should be paid in the following installments to the Inland Revenue Department:

Within Poush End:40% of Total Estimated Tax Liability

Within Chaitra End:70% of Total Estimated Tax Liability

Within Ashad End:100% of Total Estimated Tax Liability

Estimated Tax should not be less than 90% of Annual Tax to be paid for Income Year. Further Estimated Tax Return should be submitted within Poush End of Income Year.

Failing to pay Advance Tax leads to Interest u/s 118 (i.e. 15% p.a.) of Income Tax Act of Nepal.

Filing Income Tax Return

As per Section 99 of Income Tax Act 2058, Income Tax Return should be filed within 3 months from the date of closure of Income Year. This period can be extended up to 3 Months upon written request and due approval of IRD before closing of the time to filing or extended time to filing return.

As per Section 117(1)(b), In case of delay in submission of Final Tax Return under Section 96 of the Income Tax Act, penalty will be imposed as under:

  1. In case of presumptive taxpayers as specified by Section 4(4), Rs. 100 per month of delay.
  2. For other taxpayers 0.1% of assessable income without deducting any amount or Rs. 100 per month of delay whichever is higher.
Tax Rate for natural Person:

A Progressive Tax Rates will be applicable to the resident natural person. The Slab Rate for Natural Person is as under:

Tax Rate for Entity

Normal Tax Rate of 25% is applicable.

Value Added Tax (VAT)

In case of transactions of Vatable Goods/Services 13% VAT is required to be charged. VAT paid on the purchase of Vatable Goods/Services will be allowed to be deducted/set off from the VAT payable on Sale of Goods/Services.

VAT payable should be paid within 25th from end of Month/Trimester in such transactions has happened. And within such time, VAT Return should be submitted.