4.2 Basic Terminology under Nepali Income Tax Law

TermMeaningPersonAn individual, firm, company, or entity liable under the ActResident/non-residentResidence tests (incorporation, control, stay periods) deciding the tax reachAssessable incomeHead income aggregated per the ActTaxable incomeAssessable income minus the Act's deductionsTax yearThe fiscal year (Shrawan–Ashar) the Act usesInstalment, TDS, withholdingPayment mechanisms collecting tax before filingAssessmentThe department's determination of the taxPAN-type tax accounting numberThe registration identity of the taxpayer