Income Tax Fine Calculator Nepal (ITR Fine Calculator / IRD Fine Calculator)

The Income Tax Fine Calculator Nepal is a simple and reliable tool to calculate fines, interest, and late fees for Income Tax Returns. Whether you missed filing your ITR on time or want to estimate your IRD fines, this calculator provides accurate results based on दफा ११७, ११८, and ११९.

Legal Background for ITR and IRD Fines

The Income Tax Act of Nepal prescribes penalties and interest for delayed or non-submission of tax returns. Key provisions include:

  • Section 117(1)(क): If a taxpayer fails to submit their estimated income return for a given fiscal year, a fine will be imposed per return. The amount is NPR 5,000 or 0.01% of taxable income, whichever is higher.
  • Section 117(1)(ग): For individuals not submitting income tax returns, a monthly fine of NPR 100 or 0.01% per year of assessable income (whichever is higher) is applied.
  • Section 118(1) & (2): Interest is charged on installments exceeding the paid amount
  • Section 119(1): If tax is not paid by the due date, interest is applied on the remaining unpaid amount monthly until payment.

How to Use the Income Tax Fine Calculator Nepal

Our Income Tax Fine Calculator simplifies fine and interest calculation for taxpayers in Nepal. Here’s how to use it:

  1. Select Fiscal Year: Choose the relevant fiscal year for which you are calculating fines.
  2. Enter Return Filing Date in BS: Input your filing date in the format yyyy.mm.dd (e.g., 2081.03.15).
  3. Check Estimated Return Filing Status: Check if you’ve filed Estimated Income Tax Return for the selected Fiscal Year.
  4. Check Extension Status: Check if you’ve obtained Income Tax Return extension for the selected Fiscal Year. It is assumed that the extension has been obtained upto Poush end.
  5. Fill Inclusions and Tax Amount: Enter your total inclusion amount and tax due.
  6. Enter Paid Instalments: Input any tax installments already paid for the fiscal year.
    • Period 1 = C/f of taxes from previous Fiscal Year + Tax Paid between Shrawan to Poush of the Fiscal Year
    • Period 1 + 2 = Tax Paid as per Period 1 + Tax Paid between Magh to Chaitra of the Fiscal Year
    • Period 1 + 2 +3 = Tax Paid as per Period 1 + Period 2 + Tax Paid between Baisakh to Ashar of the Fiscal Year
  7. Click Calculate: The calculator will generate:
    • Installment amounts
    • Interest on unpaid amounts
    • Late fees
    • Total interest payable
    • Total Tax Payable after reducing advance taxes

The tool automatically computes all interest amounts according to the legal provisions.

Who Can Benefit from the Income Tax Fine Calculator

  • Individual taxpayers in Nepal who need to calculate penalties for late filing.
  • Accountants and tax consultants preparing returns for clients.
  • Businesses wanting to project tax liability and interest in case of delayed submissions.
  • Anyone seeking accurate calculations of ITR fines and interest without manually going through legal clauses.

Why You Should Use an ITR Fine Calculator ?

Manually calculating fines and interest can be confusing and time-consuming due to multiple provisions under the Income Tax Act. Our tool helps:

  • Save time: Automatic calculation of fines and interest.
  • Reduce errors: Ensures compliance with Nepal’s tax laws.
  • Plan finances: Know exact liabilities before filing.
  • Stay informed: Understand legal implications of delayed submissions.

Disclaimer for Tax Calculations

This tool is for informational purposes only and should not be considered legal or tax advice. While calculations are based on the latest Income Tax Act provisions, individual circumstances may vary. Always consult a qualified tax professional for final tax decisions.

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