Amendment in Taxation (Income Tax & VAT) by Finance Act 2076/77 (2019/20) English
Below are the Amendment in Taxation (Income Tax & VAT) by Finance Act 2076/77 (2019/20)
Income Tax Act 2058
Employment Income Tax Schedule 1
Following are the tax rate for the fiscal year 2076/77 for on salary income as per Finance Act 2076/77 are as below
Slab for the current fiscal year is increased from 350,000 to 400,000 for 1% slab for individual and slab for the couple is increased from 400,000 to 450,000.
See detailed slab here for employment tax here
New Provision regarding Submission of Income Tax return
Amended tax return can be submitted within 30 days of submission of mistake tax return.
Capital Gain Tax Reduced
Capital gain tax on share market trading has been reduced from 7.5% to 5% for the individual. Where as institutional tax payer has remain constant at 10%.
Income Tax Rate on Cooperatives
Metropolitan and Sub Metropolitan : 10%
Minicipality: 5%
No tax liability for social security fund
No tax liability for social security fund
Section 11(2) "Saving and Credit" Replaced with "Financial Cooperative"
Section 11 2KHA: New Concession Sub Section 2Kha Added in Section 11Â
If special industry operated full year during the income year following concession shall be provided
- Resident Individual Person 1/3 of the tax rate in 30% tax rate
- In case of Entity 20%
- Other concession under this section is allowed while claiming concession under this section
Section 11 (3e): Sub Section Replaced
Â
New Provision for the Expesnes which cannot be claimed added to Section 21
Following Expenses cannot be claimed
- Salary Expenses Paid to Employee having no PAN Number
- Expenses Above 5000 not having PAN Number
Value Added Tax
Tax Refund facility reducted to 4 months
Tax refund, in case of credit facility cannot be taken for any excess VAT Credit is reduced to 4 months which was previously 6 months
Â
Â
Â
Â
Â