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Advance Tax Payment Guidelines in Nepal

Advance tax is paid on estimated income before the start of the assessment year to claim a lower tax burden. Income earned in the previous year is estimated, and advance tax is paid during that previous year before March 31. Advance tax is paid quarterly on June 15, September 15, December 15, and March 15. Interest is charged if an assessee fails to pay at least 90% of the advance tax due or pays late.

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261 views2 pages

Advance Tax Payment Guidelines in Nepal

Advance tax is paid on estimated income before the start of the assessment year to claim a lower tax burden. Income earned in the previous year is estimated, and advance tax is paid during that previous year before March 31. Advance tax is paid quarterly on June 15, September 15, December 15, and March 15. Interest is charged if an assessee fails to pay at least 90% of the advance tax due or pays late.

Uploaded by

Vachanamrutha R.V
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Advance Tax

Tax on income is paid in advance based on estimated basis;

The concept is based on income tax is being paid in advance to the department (before assessment year
starts) and claiming the benefit of lesser tax burden at the time of actual payment.

Normal mechanism:

 Income earned during PY 2016-17;


 Tax paid during AY 2017-18. (within due date – 31st July/ 31st Sep)

Advance Tax mechanism:


 Income earned during PY 2016-17 shall be estimated ;
 Advance Tax shall be paid during PY 2016-17 only( i.e before 31st March 2017).

Advance tax shall be paid quarterly;


For all assessees: For person liable to presumptive taxation u/s 44AD:

1st Quarter – 15th June For all the quarter: 15th March

2nd Quarter – 15th September Note: Obligation to pay Advance Tax is imposed only to
the assessee who is liable to pay advance tax of Rs 10,000
3rd Quarter – 15th December
or more
4th Quarter – 15th March Advance tax is not payable by:

Computation of Advance Tax:  An individual being senior citizen;


 Resident in India;
Estimated income from 5 heads : XXX
 Who does not have any income from business or
Less: brought forward loss: XXX profession.

Estimated GTI: XXX

Less: Deduction during the year: XXX Interest u/s 234B:

Estimated Total Income: XXX  If atleast 90% of advance tax is not paid by assessee
before 31st March;
Tax + cess on estimated income: XXX  Interest of 1% shall be imposed on such short/ non
payment of advance tax.
Less: TDS XXX
Interest u/s 234C:
Advance Tax payable: XXX
 If the assessee liable to pay Advance tax does not
pay with the prescribed due dates;
 Interest of 1% is imposed on short payment or non
payment of advance tax.
A.O can pass an order u/s 210 against the assessee to pay advance tax

In such case assessee can accept the demand and pay Adv tax; OR

He can also pay lesser amount by declaring income on estimated basis under form 28A.

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