Amendment to Income Tax Act in English 2077/78 by Finance Bill of Fiscal Year 2077/78 (2020-21)
| Section | Existing Provision (2076/77) | New Provision (2077/78) | Comment |
|---|---|---|---|
| 10(ta) | No provision | Water and Waste management Industry registered under Water resource act 2049. |
Exemption Provided for Water |
| 11(2) | Word: Financial Transaction | Financial Transaction Word is repealed |
Rebate under this section is not |
| 11(3)(kha) |
"Under developed" word is replaced with "Less Developed" |
||
| 11(3)(ga) |
Word: "Special Industry"
|
"Special Industry" is replaced with "Special Industry and tourism industry except casino" and |
|
| 11(3kha) | Word: "Petrolium and Natural Gas" | Replaced with "Petrolium products, natural gas and fuel" | |
| 11(3ga) | Word: "Technology park and biotech park" | Replaced with "zoological, geological, biotech park, IT park" | |
| 11(3gha) | Added: "date of commercial production of Hydroelectricity" after "licensed institution" | ||
| 11(3cha) |
3cha) Any entity carried following transaction is Operation of Tram or trolly bus 20% |
Provision Replaced: a) Operation of Tram or trolly bus 40% b) Build and operation of rope way, cable car, overhead bridge 40% c) Build and operate Road, bridge, tunnel, tunnel way, railway, airport 50% |
|
| 11(3ja) | 3ja) Fruit based brandy, cider and wine production industry in Undeveloped and underdeveloped rebate is provided 40% and 50% respectively |
Under deeveloped are is added on exemption |
|
| 11(3ta) | Proviso Clause is removed | ||
| 11(3tha) |
5 years |
Provision relating to Micro and Cottage industry |
|
| 11(3dha) | 3dha) Industry established in Special Economic Zone and Indsutrial Zone are provided tax rebate of 25% for 5 years from operation |
||
| 11(6)(b) | Indsutrial Enterprise Act 2073 | Word Replaced with: "Industrial Enterprise Act 2076" | |
|
11(6)(b) |
Word "Section 15 of Indsutrial Enterprise Act 2073 " |
Replaced with "Section 17 of Indsutrial Enterprise Act 2073 " | |
| 21(1)(d1) |
Provision replaced: |
||
| 21(1)(d2) |
Provision Replaced Purchase of agrobased, forest based, animal based produces from Natural person not doing |
||
| 47A(6) | Word: 2077 Ashad end | Replaced with "2078 Ashad End" | |
| 47A(7) | Word: 2078 Ashad End | Replaced with "2079 Ashad End" | |
| 78A | No Provision |
78A) Suspension of Permanent Account Number a) Transaction is ceased b) In case of entity is liquidated, sold or transfered or entity is ceased to exist in any way c) In case of natural person, Death of natural persion d) Registered by way of error 2) Provision relating to suspension of PAN shall be as prescribed.
|
|
| 88(1) | Proviso Clause | ||
| 88(1)(5)(c) | VAT refund on electronic payment | Deleted | |
| 88(1)(8) | 8) At the rate of 2.5 Percent on rent paid on transportation service. |
8) At the rate of 2.5 Percent on rent paid on transportation service. Provided that, Deduction to be made at 1.5% if service is provided by person registered in VAT. |
|
| 88(1)(9) | No provision | 9) Interest paid by resident Bank and Financial Institution on loan disbursed in foreign currency on the area prescribed by Nepal Rastra Bank at the rate of 10% |
|
| 88(1)(10) | No provision | 10) No tds to be deducted on Commission paid for promotion of electronic payment on payment made by consumer viaelectronic medium under prevailin law through payment card, e-wallet, mobile banking |
|
| 89(3)(a) | Word: Aircraft maintainance and other | "Aircraft maintainance and other" deleted | |
| 90(8) | Addition of Phrase at end: "and fees to be chargable on advace tax deductible under Section 120." |
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| 95A(6A) | No provision | 6A) Resident bank and financial institution shall collect tax at 15% on payment of Fee for language training and certification examination fee at the time of conversion of currency. |
|
| 117(1)(b) | Word "Subsection 8" is replaced with "Sub-Section 9" | ||
| Amendment in Schedule | |||
| Sch.1-1(2)(e) | Word: Pension and Contribution based pension fund |
Replaced With: Pension, Contribution based pension fund, Contribution based Social Security Fund |
|
| Sch.1-1(9) | Section Deleted | Pension income exemption | |
| Sch 1- 2(3) |
2(3) Tax rate of cooperative shall be applicable as follows: a) Operated on municipality - 5% b) Operated on Sub Metropolitan -7% c) Operated on Metropolitan -10% |
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| Sch 2- 3(2) |
Provision Replaced: |
Amendment in Fiscal Year 2076/77
1) Taxation on Presumptive Basis Section 4(4) Tax Rebate of 75% on the applicable tax rate
2) Person paying turnover taxation 50% rebate on applicable tax
3) Person having turnover upto 1 Crore 25% rebate in income tax
4) Hotel and tourism industry rebate on income tax at 20%
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