KATHMANDU, Jan 13: Today is the last day to submit the income and expenditure statement of the last fiscal year.
Section 96 of the Income Tax Act mandates that income details must be submitted within three months after the end of the fiscal year (by the end of Asoj). However, if a valid reason is provided through an application, the Inland Revenue Department (IRD) can grant an extension of an additional three months (until the end of Poush).
The time extension that has been granted will expire today, and therefore, the complete income details for the previous year must be submitted by today. However, organizations with a turnover of less than Rs 10 million were not granted any extension.
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Additionally, according to Section 98, if the details cannot be submitted within the specified time, a request can be made citing valid reasons, and if the request is found to be reasonable, an extension of up to three months can be granted, either multiple times or all at once.
The IRD had granted an extension for the last time based on a decision made on December 8.
Earlier, the IRD issued a notice on September 23, stating that the deadline for submitting the income statement for transactions worth Rs 10 million per year will not be extended, i.e. it should be submitted by mid-October.
A deadline was given to entities with an annual turnover of Rs 250 million by the mid-December and for entities with a turnover of more than Rs 250 million by January 4 to submit their income statement.
However, the decision made on December 8 confirmed that the deadline for submission was set to the end of Poush.
If income statements are not submitted today, penalties will be imposed on such transactions. For the previous fiscal year, the penalty rate is 0.1 percent of the total annual turnover.
However, CA Diwakar Pandey said that when many people file their income statements only on the last day or time, problems arise and in some cases taxpayers have to pay fines even if they did not intend to.
