House and Land Tax Act, 2019 (1962)


Published: 1962

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House and Land Tax Act, 2019
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House and Land Tax Act, 2019 (1962)
Date of Authenticatin and Publication
2019-9-29 (Jan. 13, 1963) Amendments: 1. Revenue Tribunal Act, 2031 (1974) 2031-4-18 (Aug. 2, 1974) 2. House and Land Tax (First Amendment) Act, 2036 (1979) 2036-8-5 (Nov. 21, 1979) 3. House and Land Tax (Second Amendment) Act, 2043 (1986) 2043-6-16(Oct. 2, 1986) 4. Finance Related Some Nepal Acts Amendment Act, 2047
(1990)
2047-8-27 (Dec. 13, 1990)
5. Some Nepal Acts Amendments Act, 2063 2063.6.28 (Oct. 14, 2006)
Act No. 31 of the year 2019 (1962)
An Act made to Provide for Levying Tax on House and Land in Urban Areas
Preamble: Whereas, it is expedient to levy tax on the house and land in the urban areas
in order to increase national income for the development of the country;
Now, therefore, be it enacted by His Majesty King Mahendra Bir Bikram Shah
Dev, pursuant to Article 93 of the Constitution of Nepal.
1. Short Title, Extension and Commencement: (1) This Act may be called as the
"House and Land Tax Act, 2019 (1962)".
(2) It shall extend all over Nepal and shall also apply to any person who is
residing outside the Nepal and holds house and land in the Nepal.
(3) It shall be deemed to have been commenced since 9th Shrawan 2019
(July 24, 1962).
2. Definition: Unless the subject or the context otherwise requires, in this Act,-
(a) "House and Land in the Urban Area" means any house situated in such
urban area as may be specified by Government of Nepal upon a
Notification published in the Nepal Gazette and the land in cartilage
(lagapat).

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(b) "Land in cartilage" means the land where a house is situated and the land
compounded with a fence or wall and concerned with (occupied by) that
house and, if not so compounded, the land within the ceiling of land which
a landowner may hold for house and compound under the Lands Act, 2021
(1964).
(c) "Tax" for purposes of this Act, means the tax to be levied on house and
land. (d) "Tax Officer" means a Tax Officer, senior Tax Officer, Chief Tax Officer
appointed by Government of Nepal or any other officer so designated by
Government of Nepal as being entitled to exercise the powers of the Tax
Officer pursuant to this Act.
(e) "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: If any Act makes provision on
levying house and land tax for years 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. Duty to Furnish Statement: (1) A person who is liable to pay the house and land
tax under this Act or prevailing Nepal law has to furnish, or cause to be furnished
statement of his/her house and land with the Tax Officer of the area where he/she
ordinarily resides in such format as may be prescribed.
(a) A person, who ordinarily resides outside Nepal, has to furnish
such statement with the Tax Officer of Kathmandu. If any
tax-payer desires to submit statement of his/her house and
Amended by the Second Amendment


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land to the Tax Officer of the area where his/her house and
land is situated and get the tax payable by him/her assessed
and pay the tax there, then he/she may do so accordingly.
(b) If a person liable to pay the house and land tax under this Act
is a minor or insane or dumb, it shall be the duty of his/her
guardian to furnish statement of the house and land of such
person. ⊗(c) Statement of any house and land owned by more than one
person may be furnished by any person out of the persons
having such joint ownership. ⊗(d) A tax-payer who has house and land in more than one urban
areas has to set out an inventory of all the house and land
belonging to him/her and also indicate the Tax Officer which
he /she wants to get it finally assessed his/her tax in the
statement of house and land required to be submitted by such
tax payer.
(2) A person, who does not furnish or cause to be furnished the statement
required to be submitted under Sub-section (1) or who submits a false statement,
may be punished with a fine of up to Five Thousand Rupees, by an order of the
Tax Officer.
(3) If the Tax Officer suspects any person of holding such house and land
as may be subject to the tax under this Act or the prevailing Act, he/she may issue
a written order requiring such a person to furnish a statement of his/her house and
land. Such a person has to furnish, or cause to be furnished, a statement of his/her

Inserted by the Second Amendment.


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house and land with the Tax Officer within Fifteen days after the date of receipt of
the order, in such format as may be prescribed.
Provided that, a person, who fails to furnish or cause to be furnished a
statement even within the time-limit mentioned above, has to give a written notice
thereof, accompanied by the reason therefor, to the Tax Officer within the time-
limit specified in that order and the Tax Officer may, if thinks the grounds to be
believable, give time extension for a period not exceeding One month.
(4) The Tax Officer may impose a fine of up to Five Hundred Rupees on
any person who does not abide by any order issued under Sub-section (3) or may
withhold the registration, thereby, preventing the transfer of the house and land
belonging to such person in any manner.
5. Valuation of house and land of urban area: The Tax Officer shall, on the basis
of the prescribed principles, valuate the house and land of the urban area for the
purpose of house and land tax to be levied on such house and land in the urban
area pursuant to the prevailing Act.
6. Assessment of house and land tax : (1) The Tax Officer has to assess the amount
of house and land tax to be recoverable pursuant to this Act for a year within three
months,........ as far as possible, after the statement of house and land has been
furnished.
Provided that, even though any person has whatsoever house and land,
statement of all of such houses and land have to be obtained, to be evaluated
separately and the house and land tax assessed considering all the house and land
to be one unit for purposes of this Act.
(2) Tax shall be assessed considering the person of whose ownership a
house and land stand on the first day of Shrawan of each year as the owner of that
house and land for that fiscal year; and if such house and land is jointly owned by
Amended by the Second Amendment.

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more than one person, then the tax shall be assessed considering the house and
land to be under joint ownership of such persons.
⊗(2a) If several stories of any house are or any one storey is owned by
several persons, then tax shall be assessed considering the house and land to be
separate in the names of the persons having joint ownership.
(3) In assessing such tax, the Tax Officer shall have all of such powers as
the court is entitled to pursuant to the prevailing Nepal law in respect of properly
considering the statements furnished by tax payers and issuing summons in the
name of the concerned person, getting them to make depositions, and submit
documents for purposes of examining such statements, as the case may be.
∝.................. ⊗6A. Power to assess advance tax: If any taxpayer fails to furnish statements or there
exists any reasonable cause for being unable to assess tax for the time being on the
basis of the furnished statements of house and land, the Tax Officer may assess
advance tax and order for deposit the same subject to it being under final
assessment of tax subsequently on the basis of assessment of tax for the latest year
for which tax has already been assessed, without prejudice to other action under
this Act and assessment of tax.
7. Valuation of house and land in respect of person failing to furnish statement
and assessment of house and land tax : If any person obliged to furnish
statement pursuant to Sub-section (1) or (3) of Section 4 fails to furnish, or cause
to be furnished, such statements or furnishes or causes to be furnished false or
incomplete statements the Tax Officer may, subject to Section 5 and 6, valuate the
house and land of that person and assess the tax, based on justifiable presumption
to the extent possible. ⊗
Inserted by the Second Amendment. ∝
Proviso deleted by the Second Amendment.

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⊗7A. Power to make correction: (1) If it is learnt from an application made by a tax-
payer or from any other source that tax has been so assessed that the figure of tax
is lower or higher because of some error in any statements or mathematical error
in valuating the house and land pursuant to this Act, the Tax Officer may, within
Two years from the date of assessment of tax, correct the error and reassess the
tax.
(2) If the amount of tax to be set after making correction the error in the tax
assessment order pursuant to Sub-section (1) becomes less than that of tax
assessed previously, prior to issuing such tax assessment order, approval of the
Director General of the Department of Tax shall be obtained by executing a memo
(Parcha) setting out clear reasons therefor.
(3) If the amount of tax to be set after making correction pursuant to Sub-
section (1) becomes higher than that of tax assessed previously, prior to correcting
the error in the tax assessment order, a memo setting out clear reasons therefor has
to be executed, the tax-payer has to be given a written notice about it and given a
reasonable opportunity to defend him/herself in respect of the tax payable by
him/her. 8. Payment of house and land tax: (1) After receipt of the tax assessment order
pursuant to this Act, tax-payer has to deposit the amount of such tax with the
concerned tax office within Thirty-Five days from the date of receipt of that order.
(2) If a tax-payer fails to deposit the tax within the time-limit as referred to
in Sub-section (1), the Tax Officer shall recover the tax in the following manner,
by also charging a fee set the rate of fifteen per cent per annum of the amount of
tax payable by him/her:
⊗ Inserted by the Second Amendment. Amended by the Second Amendment

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(a) by withholding the movable or immovable property of the tax
payer,
(b) by impounding any deposit of the tax-payer in any
governmental office or in any corporate body owned by
Government of Nepal or any amount payable by such office
or body to the tax-payer or causing such amount to be paid to
the Tax Officer,
(c) by withholding the transactions of and exportation and
importation by the tax-payer,
(d) by auctioning the whole or part of the movable or immovable
property of the tax-payer in one or several lots in accordance
with the prevailing law.
(3) If the tax-payer comes to pay the amount of tax after the
commencement of auction sale of the property of the tax-payer and before the
completion of the auction sale, the auction sale may be stopped (withheld) by
collecting the tax chargeable as well as an additional fee at the rate of five percent
of the total amount of fee.
(4) If the amount realized from the auction sale of the property of the tax-
payer pursuant to Clause (d) of Sub-section (2) is more than the amount due to be
recovered from the tax-payer, such excess amount shall be returned to the tax-
payer.
(5) If, in auctioning the property of a tax-payer pursuant to Clause (d) of
Sub-section (2), no one buys it, the ownership of such property shall devolve on
Government of Nepal. 9. Appeal : An appeal may be made to the Revenue Tribunal against an order made
by the Tax Officer under Section 4, 5, 6 or 7.
Amended by the Revenue Tribunal Act, 2031 (1974).

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10. Powers of Government of Nepal to remit house and land tax: (1) If any house
and land in the urban area being demolished or defaced becomes unfit for
residence, Government of Nepal may remit, wholly or partly, the house and land
tax leviable on such house pursuant to the prevailing Act.
(2) Government of Nepal may remit, wholly or partly, the house and land
tax leviable pursuant to the prevailing Act on the house and land in the urban area
used as dispensary, public school, orphanage, public trust house or in benevolent
(welfare) and religious works.
11. Price to true information giver: Any person who gives the true information that
any person obliged to furnish or cause to be furnished statements pursuant to
Section 4 does not furnish or cause to be furnished such statements or has
furnished or caused to be furnished false statements, shall after that matter is held
to be true, be given, by order of Government of Nepal, a price in a sum of Twenty
per cent of the figure of the house and land tax recovered from the offender (guilt).
12. Non-applicability: For removing doubt, it is clarified that nothing contained in
this Act and the Rules framed under this Act shall be applicable to ........... land
under Government of Nepal, house and land of the Village Development
Committee, Municipality or District Development Committee, house and land of a
foreign government and house and land where the main machine of a mill or
factory is installed, godown, such land as may be prescribed for keeping raw
materials within compound of a factory, labour quarters and sheds and specific
Deleted by Some Nepal Acts Amendments Act, 2063. Amended by the Finance Related Some Nepal Acts Amendment Act, 2047 (1990). Amended by the First Amendment.




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house and land where customers of a hotel dine and stay, motor vehicle parking
place and garden.
13. Tax Officers: (1) Government of Nepal may, for purposes of this Act, appoint
Tax Officers in such number as it may deem necessary.
(2) Government of Nepal may, by a Notification published in the Nepal
Gazette, specify as to how many areas or villages are to be assigned under
jurisdiction of any Tax Officer.
(3) Any Tax Officer may delegate in writing any or all of his/her power to
any of his/her subordinate official. Any action carried out by him/her in pursuance
of the power so delegated shall be valid as if it were carried out by the Tax
Officer.
(4) The documents submitted by the taxpayer pursuant to Sections 4, 6, 9
and 11 of this Act shall be deemed to be strictly confidential. Such documents
shall not be disclosed for any other acts (purpose) except tax related governmental
proceedings, and such documents shall not be taken by any court as evidence in
any other matters excepts for purposes of house and land tax.
(5) Government of Nepal may, by a Notification published in the Nepal
gazette, delegate any or all of the powers conferred on it under this Act to the Tax
Officer.
14. Power to frame Rules: Government of Nepal may frame Rules in order to carry
out the objectives of this Act.
15. In the event of inconsistency: 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.
________________________________________________________________________
Note: The words modified (translated) by the Nepal Law (Amendment) Act, 2024 (1967).
(a) "Adhikrit" instead of Officer.
(b) "Rajpatra" instead of Gazette.