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Tax Clearance Deadline Extended by 14 days

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Tax Clearance Deadline Extended by 14 days
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After facing widespread criticism for issuing notice to clear tax dues and submit tax details by June 7,  the Inland Revenue Department (IRD) has extended the tax payment and tax filing deadline by 14. Issuing a new notice today, IRD has set two new deadlines for clearance of tax dues and filing of income tax details. As per the new arrangement, taxpayers will have to pay VAT, excise duties and income tax by June 21. Similarly, they are required to file income tax details estimate and pay the second installment of tax dues by June 29. Similarly, IRD has also extended the deadline for clearing education service tax and telecommunications tax to June 21.

The department took a step back from its earlier position after major private sector bodies warned that businesses cannot clear their tax dues at a time when most of the economic activities in the country have come to a grinding halt because of lockdown which is in place since March 24. In a meeting with private sector representatives at the Ministry of Finance today afternoon, Revenue Secretary Sishir Kumar Dhungana informed that the government will extend the deadline. In the revised notice, IRD has also not mentioned anything about penalizing taxpayers if they fail to clear dues and file their tax details by the deadline.

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