Very Short Questions and Answers

1. State any four functions carried out by Inland Revenue Department (IRD).

IRD carries out the functions related to:

  • Tax administration (Income Tax and VAT)
  • Tax policy
  • Taxpayer services
  • Tax audit
2. Mention any two rights of the Government of Nepal as regards to Implementation of tax laws.

The rights of the Government of Nepal with respect to ITA, 2058 are:

  • Right to make a double tax avoidance treaty with other countries to avoid the situation of double taxation.
  • Right to establish or remove tax office for the purpose of collecting tax. It has also the right to appoint tax officers and delegate powers.
3. State any four rights of the taxpayer.

The taxpayer with respect to paying tax is entitled to enjoy the following four rights:

  • Right to get respectful behavior.
  • Right to receive tax-related information as per prevailing laws.
  • Right to get the opportunity of submitting proof in own favor in respect of tax matters.
  • Right to appoint lawyers or auditors for defense.
4. Explain any four duties of the taxpayer.

The taxpayer is required to fulfill the following duties in accordance with the Act:

  • To register and get Permanent Account Number (PAN).
  • To follow/adopt the accounting method prescribed by the Government of Nepal.
  • To maintain books of account and other documents properly.
  • To pay tax within stipulated time and place.
5. Define Permanent Account Number (PAN).

A PAN is a number assigned by the Inland Revenue Department to every taxpayer for the purpose of identification. The Department may also prescribe situations in which a person is required to show their Permanent Account Number.

Short Questions and Answers

1. Enumerate any five rights of the Director-General of Tax under the Income Tax Act, 2058.

The Director-General has the following rights:

  • exercise any power granted to the IRD
  • delegate the exercise of any of the power to another officer.
  • issue public circulars
  • prescribe documents
  • stay or otherwise affect a reviewable decision.
2. State any five duties of a taxpayer.

The Act has not categorically specified the duties of taxpayers. However, to enjoy the rights as per the Act, the taxpayer is required to fulfil the following duties in accordance with the Act:

  • To register and get Permanent Account Number (PAN).
  • To follow/adopt the accounting method prescribed by the Government of Nepal.
  • To maintain books of account and other documents properly.
  • To pay tax within stipulated time and place.
  • To pay tax in installments or deduct tax at source.
3. Explain in brief any five rights of an assessee (taxpayer).

A taxpayer means a person (an individual or an entity) on whom the tax is imposed and realized as per Income Tax Act, 2058.

As per section 74 of the Act, the taxpayer with respect to paying tax is entitled to enjoy the following rights:

  • Right to get respectful behavior.
  • Right to receive tax-related information as per prevailing laws.
  • Right to get the opportunity of submitting proof in own favor in respect of tax matters
  • Right to appoint lawyers or auditors for defense and
  • Right to secrecy in respect of tax matters and keep it inviolable.
4. State any five rights of a tax officer under the Income Tax Act 2058.

An officer of the Department other than the Director-General, a Deputy Director-General, Chief Tax Administrator, Director, Chief Tax Officer, or Tax Officer appointed as the Chief of a tax office may:

A) exercise any power granted to the Department that has been delegated to the officer other than:

  • to issue public circulars.
  • to prescribe documents.
  • to stay or otherwise affect a reviewable decision.
  • to allow or disallow the objection by any person in whole or part.
  • to compound an offense and
  • to authorize an officer or issue a notice.

B) may not delegate any power delegated to the officer.

5. Briefly explain any five powers of the Inland Revenue Department.

Inland Revenue Department (IRD) can exercise the following powers given in ITA, 2058 and Income Tax Rule, 2059:

  • to take official action against its employees.
  • to exercise the power of the court for the purpose of this Act
  • to develop and issue directives as required
  • to order for payment of the penalty amount
  • to decide an exempt amount
6. Briefly describe any five rights of the Government of Nepal under ITA, 2058.

Income Tax Act, 2058 has empowered the Government of Nepal as regards the implementation of the tax laws.

The rights of the Government of Nepal are:

  • Right to make a double tax avoidance treaty with other countries to avoid the situation of double taxation.
  • Right to establish or remove tax office for the purpose of collecting tax. It has also the right to appoint tax officers and delegate powers.
  • Right to allow an unlimited amount of donations given to the tax-exempt organizations by publishing a notice in Nepal Gazette.
  • Right to make rules regarding tax for fulfilling the objective of the Act.
  • Right to make changes as required in schedules other than schedule 1.

Leave a Reply

Your email address will not be published. Required fields are marked *