Kathmandu. KATHMANDU: The Inland Revenue Department (IRD) has implemented new legal and technical provisions to make the tax system more transparent, technology-friendly and taxpayer-friendly. Director General of the Department, Dr. According to Bhishma Kumar Bhusal, this step has been taken to remove the administrative hassles faced by the taxpayers and to prevent possible manipulation in revenue mobilization. 

According to Director General Bhusal, the taxpayers will now be able to amend the Value Added Tax (VAT) statement within 7 days if there is an error in the statement submitted by them. 

Prior to this, even if there was a minor numerical error (e. g. one zero being more than one) while filling the return, there was a compulsion to visit the tax office for correction. The Department has also made the process of tax deduction at source (ETDS) through electronic means more systematic. 

According to the current law, there is a provision to file ETDS within the 25th of every month, but many agencies have a tendency to hold the amount till the end of the financial year and file it only at the last moment. 

‘In the old system, it was difficult to correct the details once they were entered, due to which the taxpayer had to suffer a lot. Now, a seven-day window has been given to taxpayers to verify their details at home and correct their mistakes. This will save the time of the taxpayer and the congestion at the tax office. “Now, the amount withheld from tax should be entered into the system on time,” he said. If the money is not seen in the system by the 25th of the next month, then the concerned taxpayer will have to question why and who has held his money. ’

Director General Bhusal has also mentioned that in some cases, there is manipulation such as making entry on ‘back date’ to reduce the tax liability.The department believes that such irregularities will be stopped now that the system has been made mandatory and time-bound. On the one hand, it will ensure timely collection of revenue in the state treasury and on the other hand, it will eliminate the need for taxpayers to go to office with vouchers looking for proof of their tax deductions. Director General Bhusal said that these reform efforts by the Department will help maintain good governance in the overall tax administration.