Income declaration is a new practice of encouraging people to go for self-declaration of their income in a prescribed format. The plan of making income statement declaration mandatory was announced in the budget for Fiscal Year 2015/16.
Individuals earning Rs 4 million or above annually will have to submit their income statement of the year 2015/16 by mid-October next year.
"All the taxation and tax payments modes will be the same. This is only a new provision for disclosure of income for individuals earning high income," Chandrakala Paudel, chief tax administrator of Inland Revenue Office Kathmandu Sector, said. "This system will bring details of people who have multiple income sources."
But income generated from investment and business activities are excluded from this category.
A total of 542,216 individuals have registered for personal PAN, which started in 2009/10, so far, according to Inland Revenue Statistics. Similarly, 786,340 institutions have also registered for PAN.
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