D-03 Income Tax Return Submission Form - some amendments in procedures

The IRD has issued a notice on 2078/05/08 (24 August 2021) for some changes made in Annexure 1, Annexure 2, and Annexure 10 as follows:
  • Annexure 10 should be prepared prior to submission of Income detail into IRD’s system
  • A system has been developed where the income stated in the Annexure 10 should match with the income tax paid at various point in time with reference to voucher number, PAN, Income year, revenue head and office head.
  • Annexure 10 should be run by the concerned tax payer and if any excess credit is mentioned therein such should be removed and if any short credit is transferred such should be included by contacting with concerned tax office.
  • All withheld taxes (Tax Deducted at sources) which has been deducted using ETDS shall be automatically updated in Annexure 10. The amount will be updated on the basis of Income Year mentioned in the E-TDS return.
  • For amended tax assessment, Transfer of Credit shall be automatically updated in Annexure 10 after the same has been transferred by the concerned tax officer.
  • Excess Income tax paid shall be automatically updated in Annexure 10 for the next income year.
  • The Tax payer should sequentially fill in Annexure 5 (For income from Business), Annexure 6 (For income from Employment), Annexure 7 (For income from Investments). Based on such filledin information, Annexure 1 (for natural person) or Annexure 2 (for entity) will be automatically updated considering the fees payable under section 117(1) and section 118. Additional tax, if required to be paid, can be paid by filling in the necessary voucher. Once Annexure 10 is re-updated based on such payment, the return may be submitted and verified.
  • Return filing should be timely made considering the excessive system pressure during the due dates and update the necessary withholding taxes and transfer of credit in a timely manner.  
  • The above procedures may cause some difficulties to the tax payer during the initial days of its implementation so necessary coordination should be made between the Large Taxpayer Office, Medium Taxpayer Office, Inland Revenue Office, Taxpayer Service Office and the Auditors from the Institute of Chartered Accountants of Nepal for making tax payer aware and capable.
Please click here for accessing the notice issued by IRD.

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