Unit 5: Fiscal Legislation of Nepal
5.1 Income Tax
The Income Tax Act 2058 (2002) — the direct-tax core: the tax’s heads (the income-from-business (the business-and-investment income), the employment (the salary-and-benefits), the investment (the interest-dividend-rent-gain faces)); the taxpayer’s classes (the resident-and-non-resident (the source rules)); the assessment’s machinery (the self-assessment + the IRD’s audit-and-reassessment); the deductions-and-exemptions (the expenses’ deductibility; the exempt-income faces (the cooperative-and-social sector’s lines)); the rates (the Finance Act’s annual variation — the slabs-and-corporation rate’s budget-night changes); the relevance: the revenue’s biggest single source (the modern system’s anchor — the 2058 Act’s consolidation of the scattered old laws).
5.2 Periodic Tax Recovery
The recovery’s discipline: the tax’s collection-and-enforcement faces (the arrears’ recovery machinery: the notice-demand line (the payment’s demand); the penalties-and-interest (the delay’s price); the collection’s tools (the deduction-at-source (the TDS faces — the withholding’s web); the attachment-and-sale (the defaulters’ assets)); the disputes’ route (the review (the Department’s internal face) → the Revenue Tribunal (the specialist forum — the LAW5605-U5’s tribunal companion) → the court); the recovery’s time-limits (the limitation discipline); the amnesty cycles (the waiver schemes’ political economy — the U4.7’s critique).
5.3 Property Tax
The wealth-and-property faces: the local property taxes (the LGOA 2074’s local machinery: the house-and-land valuation; the integrated property tax’s design); the capital gains (the Income Tax Act’s property-disposal head (the gains’ taxation)); the wealth-tax debates (the world’s decline — Nepal’s absence); the registration fees (the property’s transfer levy (the registration’s value-based charge)); the valuation’s discipline (the valuation committees; the minimum-valuation directives’ lore).
5.4 Custom Duty
The Customs Act 2064 (2007) → the new Customs Act 2081 (2024) — the border-tax frame: the duties’ types (the import-and-export; the ad-valorem-and-specific); the valuation (the transaction-value discipline (the WTO’s customs-valuation agreement face)); the classification (the HS-code’s international standard); the exemption-and-concession faces (the treaties; the industrial-incentive lines; the duty-drawback); the clearance (the declaration’s lodgement; the risk-management’s modern selectivity); the offences (the smuggling; the undervaluation; the seizure-and-forfeiture machinery); the relevance: the trade’s gate (the trade course’s tariff companion (LAW5602)).
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