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House and Land Rent Tax Act, 2023 (1966)

Date of Royal Seal and Publication

2023-5-24 (Sept. 9, 1996)

Amending Act

Revenue Tribunal Act, 2031 (1974) 2031-4-18 (Aug. 2, 1974)

Act No. 10 of the year 2023 (1966)

An Act made to Provide for Assessment and Recovery of House and

Land Rent Tax

Preamble : Whereas, it is expedient to manage the modus operandi of

assessment and recovery of the amount of house and land rent tax leviable
under the prevailing Nepal law;

Now, therefore, be ie enacted by His Majesty King Mahendra Bir

Bikram Shah Dev on the advice and with the consent of Rastriya Panchayat.

1. Short Title, Extent and Commencement : (1) This Act may be

called as the "House and Land Rent Tax Act, 2023 (1966)".

(2) It shall extend to the whole of the Kingdom of Nepal and shall
also apply to any person who has house and land in the Kingdom of
Nepal and resides in or outside the Kingdom of Nepal.

(3) It shall commence immediately.

2. Definitions: Unless the subject or the context otherwise requires, in

this Act,-

(a) "House and Land" includes a house or such land within the
compound covered by the house as may be free from the tenancy
right pursuant to the prevailing Nepal law.

Repealed by Income Tax Act,2058 (2002).

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(b) "House and land owner" in respect of any house and land, means
a person who has ownership over the house and land and includes
the following persons in the following circumstances:

(a) In respect of a house and land subject to usufructuary

mortgage, the mortgagee of such house and land;

(b) In respect of a house and land owned by a partnership,

firm or any corporate body:-

(1) If it belongs to a partner-ship, its partners and

administrative chief for the time being,

(2) If it belongs to any firm or corporate body,

administrative chief of that firm or corporate body
for the time being.

(c) In the case of a house and land which is given by the

owner thereof as mentioned above to any other person for
its maintenance or protection, the person who maintains or
protects it until he maintains or protects it accordingly.

(c) "Rent" means the letting by the house and land owner of his/her
house and land to any other person in a manner that such owner
receives certain amount in cash or in kind.

Provided that, this expression does not include any

transaction carried out in the form of usufructuary mortgage.

(d) "Tax" means the house and land rent tax leviable pursuant to the
prevailing Nepal law.

(e) "Tax-payer" means a person who is liable to pay tax pursuant to

Section 4.

(f) "Tax Officer" means a person appointed or designated by His

Majesty's Government as the Tax Officer to act as the Tax
Officer pursuant to this Act.

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(g) "Fiscal year" means the fiscal year of His Majesty's Government.

(h) "Prescribed" or "as prescribed" means prescribed or as prescribed

in the Rules framed under this Act.

3. Assessment and recovery of house and land tax pursuant to

this Act : If any Act makes provision on levying house and land tax for
year or for any one year, such house and land tax shall be assessed and
recovered pursuant to this Act and the Rules framed under this Act.

4. Liability to pay tax : (1) The house and land owner shall be liable to
pay tax.

(2) If more than one persons are liable to pay tax pursuant to Sub-
section (1) in respect of any house and land, any person out of such
persons may be compelled to pay tax.

(3) If a person liable to pay the tax under this Act is a minor,
his/her guardian has to pay the tax payable by such minor.

5. To Furnish Statement : (1) If any person lets any house and/or land to
any one with or without executing a deed, such person has to furnish the
concerned Tax Officer with the statement clearly setting out the
description of such house and/or land, and full name and address of the
person who rents it from such person, and the rental amount to be
received therefrom, and accompanied by a duplicate copy of a deed, if
any, executed.

Provided that,-

(a) in cases where no tax is required to be paid under

this Act or any other prevailing Nepal Law for so
letting, the statement referred to in this Sub-section
is not required to be submitted,

(b) if, in respect of any house and land already let

before the commencement of this Act, such

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statement has already been furnished previously,

the statement referred to in this Sub-section is not
required to be furnished.

(c) if, in respect of any house and land already let

before the commencement of this Act, such
statement has not been furnished previously, the
statement referred to in this Sub-section may be
furnished within Sixty days from the date of
commencement of this Act.

(2) If there is any reasonable cause for suspecting that any person
who does not furnish the statement referred to in Sub-section (1) is a
person liable to furnish the statement as referred to in that Sub-section,
the concerned Tax Officer may order such person to furnish such
statement, and it shall be the duty of such person to submit the statement
referred to in Sub-section (1) within Thirty Five days from the date of
receipt of the order.

Provided that, if he is not required to furnish statement pursuant

to Sub-section (1) or if he has already furnished such statement
previously, he/she has to give a written notice clearly setting out that
matter to the concerned Tax Officer within Fifteen days.

(3) Each house and land owner has to fill up such statement in
respect of the house and land by him/her as may be prescribed and
furnish such statement to the concerned Tax Officer each year within
Sixty days of expiration of fiscal year.

(4) If the person required to furnish such statement or give such

notice within such time-limit as referred to in Sub-section (1), (2) or (3)
makes an application to the concerned Tax Officer for extension of the
time-limit upon showing any reason for being unable to furnish or give
such statement or notice within that time-limit, the Tax Officer may, if

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the reason appears to be proper, grant extension of the time-limit not

exceeding Thirty days to the time-limit referred to in these Sub-sections.

(5) If any person required to furnish the statement pursuant to

Sub-section (1) or (3) fails to furnish the statement within the extended
time-limit if he/she has got that extension of the time-limit pursuant to
Sub-section (4), and within the time-limit as referred to in Sub-section
(1) or within the time-limit as referred to in Sub-section (1) or (3) if
he/she has not got such extension of time-limit, such person may be
punished with a fine of up to One Thousand Rupees by an order of the
concerned Tax Officer.

(6) If any person required to furnish the statement pursuant to

Sub-section (1) fails to furnish such statement within the extended time-
limit under Sub-section (1) if such person referred to in Sub-section (2)
where such person has not got such extension of time limit even after
receipt of an order pursuant to Sub-section (2), such person shall be
punished with a fine of up to two thousand rupees in addition to the
punishment mentioned in Sub-section (5) by an order of the concerned
Tax Officer.

(7) If any person required to furnish the statement pursuant to

Sub-section (1) or (2) furnishes a false or incomplete statement with an
intention of evading the tax, such person shall be punished with a fine of
up to Five Thousand Rupees by an order of the concerned Tax Officer.

(8) If any person required to give a notice pursuant to Sub-section

(2) fails to give such notice within the time-limit extended pursuant to
Sub-section (4) if such person has got such extension, and within the
time-limit referred to in Sub-section (2) if he has not got such time
extension, such person may be punished with a fine of up to One
Hundred Rupees, by an order of the concerned Tax Officer.

6. Assessment and payment of tax : (1) After the statement has been
furnished pursuant to Section 5, the concerned Tax Officer shall assess

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the tax by also inquiring into the matter as per necessity and give a
notice thereof to the tax-payer.

(2) The tax-payer has to pay the amount of tax to a bank in a

place where the bank is situated, and to the Land Revenue Office where
no bank is situated within Thirty Five days from the day of receipt of the
tax assessment notice pursuant to Sub-section (1).

7. Payment of advance tax : The concerned Tax Officer may, if deems

it necessary, issue an order requiring payment of advance tax on a
monthly basis in a manner to adjust the amount of tax at the time of final
assessment of tax pursuant to Sub-section (1) of Section 6; and it shall
be the duty of the concerned person to pay advance tax accordingly.

8. Assessment of tax in a just manner : Notwithstanding anything

contained in Section 6, if the statement required to be furnished pursuant
to Section 5 in respect of any house and land is not furnished pursuant to
that Section or if any false or incomplete statement is furnished or if any
furnished statement does not seem to be satisfactory upon examining it
pursuant to Sub-section (1) of Section 6, the Tax Officer may assess the
tax in respect of such house and land, based on the following matters as
far as possible :-

(a) Secret report on tax, if any, made by an employee,

(b) Tax being paid by other tax-payer in respect of similar type of

house and land, if any,

(c) Such other matters as may be deemed reasonable by the Tax

Officer.

9. Power to reassess tax : Even though the final tax has been assessed
pursuant to this Act, if there occurs any of the following causes, the
concerned Tax Officer may, at any time, reassess the tax by obtaining
approval of the Department of Tax, Ministry of Finance of His Majesty's
Government:

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(a) If there is a mathematical or any other error in assessing the tax,

or

(b) If any proof is received which shows that lesser tax has been paid
where more tax has to be paid.

10. Conversion of goods in-kind into cash : In cases where any tax-
payer has let his house and land for goods in-kind as rental, His
Majesty's Government may, by a notification published in Nepal
Gazette, specify the basis for converting such goods in-kind into cash.

11. Refund of tax: In cases where any person has paid tax or fine in excess
of the tax or fine required to be paid pursuant to the prevailing Nepal
law, the concerned Tax Officer may refund such excess tax or fine or
adjust it in the arrears of tax recoverable from such person.

12. To recover as governmental due : If any tax-payer fails to pay the

amount of tax or fine required to be paid by such tax-payer pursuant to
this Act within the time-limit, such office or authority as may be
specified by His Majesty's Government shall recover such arrears of tax
or fine and an interest to be set by five per cent thereof per annum from
such tax-payer as a governmental due in accordance with the prevailing
Nepal law.

13. Tax Officer to have such powers as a court has: For purposes of
this Act, the Tax Officer shall be entitled to exercise all of such powers,
in respect of issuing the summons in the name of the concerned tax
payer or witness, taking statement and depositions and getting
documents produced as the court is entitled to exercise under the
prevailing Nepal law.

Provided that, no petition can be made for extension of a time-

limit exceeding a total of Fifteen days at various times and for extension
of the time-limit after Fifteen days from the date of expiration of the

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time-limit in respect of an action taken under this Section, and

expiration of the time-limit once extended shall not be extended.

14. Delegation of Powers by Tax Officer: (1) The Tax Officer may
delegate any or all of other powers conferred on him under this Act,
except the powers under Sections 8 and 13 to his subordinate employee
up to the rank of Non-gazetted Second Class.

Provided that, the employee to whom powers have been so

delegated shall not be entitled to impose punishment on any person
while exercising such powers.

(2) The acts and actions done and taken by the employee to
whom powers have been delegated under Sub-section (1) shall be valid
as if such acts and actions were done and taken by the Tax Officer.

15. Power to grant exemption : His Majesty's Government may, by a

notification published in the Nepal Gazette, exempt any tax-payer from
the tax leviable under this Act or prevailing Nepal law fully or partially
or remit such tax in respect of any tax-payer fully or partially.

1 16. Appeal : An appeal may be made to the Revenue Tribunal against an

order or assessment of the tax or imposition of a fine of more than one
hundred rupees.

17. Documents to be confidential : The documents submitted to the Tax

Office pursuant to this Act shall be kept confidential. Such documents
shall not be disclosed for any other acts except the actions relating to
tax.

18. Other charge, fee not to be levied: Notwithstanding anything

contained in the prevailing Nepal law, no stamp fee shall be levied while
depositing cash for purposes of this Act.

1 Amended by the Revenue Tribunal Act, 2031 (1974).

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19. Price to true information giver : Any person who gives to the
concerned Tax Officer a written notice setting out that any one has
evaded the tax leviable under this Act, His Majesty's Government shall,
after that matter is held to be true, give such person a prize in a sum of
Twenty per cent of the tax recovered as a result of that notice.

20. Power to Frame Rules: His Majesty's Government may frame Rules
in order to accomplish the objectives of this Act.

21. Saving : Those matters contained in this Act or the Rules framed under
this Act shall be governed by this Act or the Rules and those matters not
contained herein or the Rules shall be governed by the prevailing Nepal
law.

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