Skip to main content

Updated Process to obtain Tax clearance certificate FY 2079/80: Online is no longer possible in Nepal.

Introduction:

Ensuring you have a valid tax clearance certificate is crucial for both individuals and entities. Previously, obtaining it online was convenient, but now a visit to the tax office is required. In this article, we'll guide you through the process, focusing on individuals with salary income.

Step-by-Step Guide:

  1. Obtain a Certified Salary Certificate: Your employer should provide a certificate detailing your annual salary, along with deductions like CIT, PF, Social Security Fund, and Insurance. Ensure the income and ETDS match the certification letter.
  2. Visit the Correct Tax Office: If your employer's location differs from your PAN registration, visit the tax office where your employer is registered.
  3. Complete the Application Form: Pick up the Tax Clearance certificate application form from the tax office's reception. It must be signed by the concerned person. If they're unavailable, provide an authorization letter matching the authorized person's identification document.
  4. Submit the Application: Hand in the completed form to the tax officer. It will be registered, and you'll be guided to the next officer for verification and certificate printing.

 Possible Outcomes:

  1. Income Discrepancy: If there's a mismatch, return to your employer to confirm and resubmit the application.
  2. Tax Deposit Verification: If the deposit isn't visible on the IRD web portal, request your employer to submit the ETDS verification details promptly.
  3. Insufficient Tax Deposit: If the deposit falls short, you'll need to make the necessary deposit and provide the deposit slip before receiving the clearance certificate.

For Individuals with Multiple Employers:

If you've had multiple employers in the fiscal year, obtain certificates from all and combine the incomes when submitting the application. Visit the tax office of your latest employer for application submission.

For Individuals with Income above 40 Lakhs:

The process remains the same, but individuals in this income bracket must also complete the D-04 return. Instead of visiting the employer's tax office, they must first visit the tax office where their PAN is registered, get D-04 verified, and then complete the application process at the employer's tax office.

In Conclusion:

Navigating the tax clearance certificate process may seem intricate, but with these detailed steps, you'll be well-prepared to obtain your certificate efficiently.  If you have any queries, please feel free to reach out to us at our Facebook, Instagram and TikTok Page @Learnwithnirmalaryal

Thanks




Labels:

Comments

Post a Comment

Most Viewed

Windfall Gain Tax (आकस्मिक लाभमा कर) per Nepal Income Tax Act

Nepal's Income Tax Act defines Windfall gain as a gain obtained by means of lottery, gift, prize, tips, share of earning in a game (जितौरी)  or any other gain acquired incidentally.  Let us explain by example what can potentially be Windfall Gain.  1) Let's say apple recently launched a iPhone 14 in Nepal. Part of such launch, company offered its customer who buys iPhone, an iPad for free. The market value of the iPhone is Rs. 214,000 and that of iPad is Rs. 189,000. In such case, customer who received Rs. 189,000 worth of iPad without any additional cost will be considered a prize hence, a windfall gain. 2) Recently DRS gaming won US$ 292,000 (approx. Rs 4 crore) for being runner's up in the grand finals of the PUBG Mobile Global Championship. Let's assume here that DRS gaming has not been registered as a company but simply represented by individuals. If I am not mistaken, there are 4 members in the team. So, each individual will have won Rs. 1 crore as share of earni...
Post a Comment
Read more

Financial Statement Template for Not for Profit Organizations (NGOs and INGOs)

Here's the recommended financial statement template by Nepal Accounting Standard (NAS) for Not for Profit Organizations (NGOs and INGOs) that you can download and modify to meet your requirements. These are developed to meet the common minimum information required of NPOs. Users can add additional information to ensure financial transparency and provide relevant information to different stakeholders. Nepal Accounting Standard board believes that by adopting the following template, users can easily understand the financial statements and also,  be able to compare with other NPOs. Model Financial Statement for NPOs (Based on NAS for NPOs) is given below: You can also download the template from the link below: Click Here
2 comments
Read more

Maximizing Tax Benefits: Understanding Insurance Premium Deductions in Nepalese Income Tax

Question:  If an employee is not enrolled in any retirement fund but has paid 40,000 for life insurance or 10,000 for health insurance, should these insurance payments be subtracted from their taxable income or not?  (this was posed in one of the facebook group) Answer:  Regardless of whether an individual has contributed to a retirement fund, they remain eligible to reduce Rs. 40,000 for life insurance and Rs. 10,000 for health insurance from their taxable income. You might be wondering how?  Let's delve into the deductions permitted by the Nepalese Income Tax Act, 2058, regarding life, health, and property insurance premiums. This blog should help you understand how insurance payments can impact your taxable income. 1) Life Insurance Deduction: For residents holding life insurance, you can claim a deduction of up to Rs. 40,000 or the actual annual premium amount (whichever is lower) from your taxable income. Refer to Annex-1, Clause 12 for this provision. 2) Health...
Post a Comment
Read more