Section 94 : Payment of tax in instalment

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1)A person who has or will have assessable income in any income year from any business or investment has to pay tax in three instalments as follows:

 The date on which payment is
to be made
Amount to be paid
By the end of Poush  (Mid-January) Amount to be paid from forty percent of the estimated tax amount 
By the end of Chaitra (Mid-April)   Amount to be paid from seventy percent of the estimated tax amount
By the end of Ashad (Mid-July) Amount due to be paid from hundred percent of the estimated tax amount

Explanation: 1) For purposes of this Sub-section,-

(a) “Estimated tax” means the estimated tax in instalments computed by any person liable to pay tax in instalments pursuant to Section 95 at the time when the instalment tax is to be paid in any year.

(b) “Tax to be paid” means the insufficient amount resulted from the subtraction of the following sum from the amount as specified under percent to deposit in instalments of the estimated amount in this sub-section:-

    (1) The amount of tax deposited in that income year by a prior instalment before the date on which the instalment in question is to be paid,

    (2) The amount of tax withheld from the payments to be included in computing the income of any person in any income year pursuant to Chapter 17 before the date on which the instalment in question is to be paid in that year,

    (3)If the agent withholding tax or the person subject to tax withholding pays to the Department the amount of tax deemed to be withheld from the payment referred to in clause (2) pursuant to sub-section (3) of Section 90 in that year before the date on which the instalment is to be paid, such amount of tax, and

    (4) The amount of tax adjustment for medical treatment expenses which that person may claim pursuant to Section 51 in respect of the accepted medical treatment expenses incurred by that person before the date on which the instalment is to be paid.

11A) The person paying tax on the basis of the transaction shall pay tax in two instalments as follows:

The date on which payment is to be made Amount of tax to be paid
By the end of Poush (Mid-January)    Tax at the prescribed rate on the transaction up to 20 Poush (4 January)
By the end of Ashad (Mid-July) The tax amount is to be set by subtracting the tax paid within the last day of Poush (Mid-January) from the amount of tax calculated as per the prescribed rate upon estimating the transaction that would be carried on by the end of Ashad (Mid-July) on the basis of real transaction up to 20 Ashad (4 July).

2) Notwithstanding anything contained in sub-section (1), if the amount of instalments to be paid pursuant to that sub-section is less than seven thousand five hundred rupees, the amount of such instalment need not be paid.
3) The person paying the instalment shall be allowed to deduct the amount of tax paid by way of the instalment in any year pursuant to this Section for the tax chargeable in that year.

1  Inserted by the Financial Act, 2075.

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Section 94 : Payment of tax in instalment

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