On 2 September 2026 (17 Bhadra 2083), the IRD prescribed a standardized format for reporting skill development fee (SDF) details, as mandated under the Finance Act 2083. The SDF, levied at 0.5% on the total remuneration paid to employees by certain enterprises, requires quarterly submission of prescribed returns. The new format aims to streamline data collection, enable automated verification, and reduce compliance burden for employers.
Key Takeaways
- Structured Data Fields for Automated Processing: The format includes mandatory fields for employer PAN, employee count, gross remuneration, SDF calculated, and payment details, compatible with the IRD’s taxpayer portal for direct upload.
- Quarterly Filing Deadline Established: Returns must be filed within 25 days of the end of each quarter (i.e., by 25th of Bhadra, Poush, Chaitra, and Ashad), with late fees applicable under Section 118 of the Income Tax Act.
- Linkage with Social Security Contributions: The notice clarifies that SDF is distinct from and additional to Social Security Fund contributions, and both must be reported separately to avoid double-counting or omission.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement