Refund of Tax

1 year ago

1.Is tax refundable?


2. On what situation, tax is refundable?

The Department of Inland Revenue refunds the tax in following situations:

  • In cases where any person has paid tax exceeding the tax liability payable by him/her and no other payable tax is remaining.
  • Refund of the interest paid by the person due to nonpayment of the tax on time, if the tax in question is not to be paid along with the interest paid.

3. On what situations paid tax exceeds the tax liability?

The tax paid by the person having income from employment may exceed the tax liability if:

  • If the employer withholds the tax which is not to be withheld or if employer withholds more than the rate of withholding.

4. What is the limitation of time for the application of tax refund?

The person has to make an application to the Department of Inland Revenue for the refund of the excess amount within two years from the date on which the excess amount is paid.

In cases where an application is not made within such time-limit, such excess amount shall not be refunded.

5. How long does it take to receive such amount after application has been made?

Such amount is refunded within 60 days.

6. What happens if the amount is not refunded within the time limit?

The amount is refunded along with interest as per the normal rate determined by the Income Tax Act, 2058.

7. Which authority refunds such amount?

The concerned office where such taxpayer has been registered.

8. What shall be done to have such mount refunded?

The person has to make an application to the department along with the documents that proves that excess tax has been paid.

9. If such amount is not refunded within time, which authority shall hear the complain?

Head of the concerned office or Inland Revenue Department.

10. Which type of amount cannot be claimed for refund?

The amount remaining after the adjustment of medical treatment and foreign tax cannot be claimed for refund.

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