Patan High Court extends Tax filing deadline to Mid-January

The Patan High Court has granted taxpayers with annual turnovers of up to NPR 25 crores an extended deadline to submit their income and expense reports. The new deadline is set for the end of Poush (mid-January), providing relief to many businesses.

The extension comes after the court issued an interim order overturning the Internal Revenue Department’s (IRD) initial deadline of December 31. This decision aligns with the provisions of the Income Tax Act, which allows taxpayers to request an extension of up to three months for filing their reports.

The court’s ruling followed a writ petition filed by advocates Srijana Adhikari, Swastika Dangal, Tika Karki, and CA Shailendra Upreti. They argued that the IRD’s announcement violated the legal framework established by the Income Tax Act. The petition highlighted the need for a fair process and adequate time for businesses to comply with tax filing requirements.