Income Tax

Sec. 2 (Ga) defines “Final Withholding Payment” as the payment like dividend, rent, interest and payment to non-resident person mentioned in sec.92 of the Income tax Act and which is…

TDS Rates in Nepal :F.Y. 2076-77 Sec.87 to sec.93 of the Income Tax Act, 2058 requires a person making payments specified therein to withhold tax (deduct TDS ) as per…

According to sec.2 (dha) of Income Tax Act, 2058, the following organizations are the tax exempt organizations: One of the following two organizations registered with the Inland Revenue Department as…

According to the definition given in sec.2 (wa) of the Income Tax Act, 2058, the term “Natural Person” includes any of the following: An Individual Spouses filing as couple u/s…

As per sec. 94, a person is required to pay the advance tax if the total amount of all three installments/advance tax is Rs. 7,500 or more or where a…

Capital Gain arises when there is gains or profits on the transfer of capital assets – long term assets such as Land, Building, Long Term Stock Holdings, etc . Capital…

Depreciation is allowed on the acquisition cost of the following assets where such assets are used for income producing purposes: Class Asset Included Depreciation Rate (%) A Buildings, structure and…

Following are the disallowed expenditures as per Sec.21 under Income Tax Act, 2058: Expenditure of domestic and personal nature. Interest incurred on loan utilized for personal purpose. Expenses of personal…

Change in Control: As per sec 57 of the Income Tax Act, 2058, 1) If the ownership of any entity changes by Fifty per cent or more as compared to…

 Residential Status of a Person  Residency of Natural Person : Natural person is a resident person in Nepal for an income year, if he/she satisfies any of the following three…