Under the regulations, new buyers of land and house worth Rs 5 million, land worth Rs 3 million or more, and vehicles worth Rs 1.5 million or more would need to fill in an additional document developed by Ministry of Finance (MoF).
"Its format is very simple and all that a buyer needs to do is disclose his income source," said a Ministry of Finance (MoF) official.
Though the regulations were to take effect from Tuesday, the MoF-designed forms reached the land revenue offices (LROs) late on Wednesday. While that caused inconvenience in registering high-priced dealings, some of the LROs like one in Bhaktapur registered the transactions maintaining separate details.
"We will forward these separate details to the Inland Revenue Office along with other forms for cross verification and investigation on the first date of the next Nepali month," said Govinda Sapkota, chief of Bhaktapur LRO.
Going by the regulations, all LROs would need to forward the filled MoF-issued forms to Inland Revenue Offices and the department within the first week of every Nepali month. "The IRD will then investigate on the income sources of all the buyers," Sapkota informed Republica.com.
At the Inland Revenue Offices and the department, the buyers would need to furnish a complete set of income statements and other details to forward their transactions through legal channel.
"All the buyers will be subject to the investigation," said the official, elaborating that IRD would make a public announcement soon on how the buyers would be contacted.
According to the regulations, the ceiling is applicable for all dealings undertaken in metropolis, sub-metropolis, municipality and areas in their vicinity. The disclosure program was announced as supplementary to Voluntary Declaration of Income Scheme (VDIS).
"The aim is to give people an opportunity to disclose their income and legalize their property," said the MoF official, expressing hope that the enforcement of the income disclosure regulations would compel many to take refuge of VDIS.
milan@myrepublica.com
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