Obtaining Tax Clearance Certificate and Pan Card correction from Inland Revenue Department (Antarik Rajaswo Bibhag)

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Recently I had visited Inland Revenue Department (Antarik Rajaswo Bibhag) Lazimpat in order to rectify  the date of birth in my PAN Card which was not consistent with my Citizenship Card and to get Tax Clearance Certificate of my salary for visa purposes.

Please note that, though PAN card of, either you or your sponsor, is (almost?) always required to send tuition fees abroad. Tax Clearance Certificate is required only in the case of some countries and in certain cases, and you need to produce it when the embassy specifically asks for it. For example, if you have applied for the residence permit to Finland, and to fulfill the means of support requirement, you have shown your or your sponsors' (who work in Nepal) salary, Finnish Immigration Service usually asks for the Tax Clearance Certificate from Inland Revenue Department. If it is not required for the country you are applying to, do not let it puzzle you.

In order to correct the date of birth on my PAN Card, I had to write an application in Nepali on a piece of paper, and submit there. You will find IRD staff there to assist customers and can consult them about what to do in your specific case. After submitting the application and waiting in the waiting area (which has a fair amount of sofa for you to sit) for almost an hour, I received a new and corrected PAN card. To get that, I did not have to fill out the application form all over again. The PAN number was the same as before on the new card and they even used the same photograph I had initially submitted for my first PAN card.

Now, for the Tax Clearance Certificate of your salary, first you need to make sure that your taxes have been regularly paid from your salary. Sometimes your employer might not have paid your taxes for the fiscal year, and nothing will be shown on the Tax Clearance Certificate. In that case, you need to first contact the person responsible for paying the taxes, in your office, probably the accountant, and make sure if the applicable taxes have been paid. If those have not been paid, request the accountant to pay it so that the amount of taxes paid will be shown in your Tax Clearance Report from Inland Revenue Department(IRD). IRD will issue the document in Nepali, and you can have it translated into English from any registered notary public office. I had mine translated at NPR 300, but the charges may vary; also you can bargain to see if you can bring the price down.

How to obtain a Bank Statement if the owner of the account is not in Nepal?

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 This is a somewhat unique case, but it can happen to students whose sponsors are abroad, and own bank accounts in Nepal. And, students need to show the bank statement of their sponsors for visa purposes of different countries.

Ideally, a bank statement is only provided to the respective account owner, by the bank, after showing valid ID card and affixing his/her authorised signature to the application form, due to the sensitive nature of the document.

But now, as many Nepali nationals are abroad for the purpose of foreign employment; if a student wishes to show someone residing and working abroad as his/her sponsor, they need to show their bank statement of either their foreign bank or their bank in Nepali if applicable.

It is possible to get the bank statement no matter where you are via email by filling out the bank statement request form, downloading it from bank's official website and sending it to bank's email in the case of many Nepali banks. It could take a few days to receive the statement through this method. Machhapuchchhre Bank Limited had taken almost 5 days to send the document through email request.

However, if you need the statement more urgently and if you want to visit the bank yourself and receive the statement on behalf of your sponsor, you can do the following.

I am sharing my experience of a similar case here. This approach might not work in all banks because each bank has their own set of policies that govern them. You need to understand with your sponsor's bank about their requirements.

In order to obtain the bank statement in the aforementioned case, you need to request your sponsor who's abroad to write an application (either in English or in Nepali) and send it to the bank's email, either customer service email or branch manager's email of a specific branch. Also request your sponsor to include their account number, authorised signature and define your relationship with him/her. In addition, the application should include your citizenship card number so the bank will be sure that you are the authorised recipient of the document.

It is better to visit the bank before the application is sent by your sponsor and ask the bank if they require any other details and have your sponsor send the application fulfilling the requirement laid out by their bank.

I had obtained the bank statement following the above-mentioned procedure at Machhapuchchhre Bank Limited's head office Lazimpat, Kathmandu. However, Machhapuchchhre Bank had told me that if the email is received from the bank owner's authorised email registered in Machhapuchchhre Bank's system, the signature of the account owner may not be needed. But if the owner does not have his email registered in MBL's system, the owner's signature is a must with the email application. It does not hurt in any case though, to affix a signature of the account owner.

 I hope this blogpost will be helpful if you are in a similar situation and are wondering what to do.