Showing posts with label Computation of Taxes. Show all posts
Showing posts with label Computation of Taxes. Show all posts

Saturday, May 20, 2023

Computation of Income Tax for Individual

Suppose Income of Individual (Male, Unmarried) Per Year (2079/080)

Salary Income: NPR 20,00,000

Employer's contribution to SSF: NPR 200,000


Deductions: Social Security Fund (Total) = NPR 310,000

Life Insurance Premium: NPR 50,000


Here, Taxable Income = NPR 22,00,000 - NPR 310,000 (SSF) - NPR 40,000 (Life Insurance Premium)

Salary Tax Computation: Taxable Income = NPR 18,50,000

1. 500,000 x 0% (Since Registered with SSF, No SST applicable)

2. 200,000 x 10% = (NPR 20,000)

3. 300,000 x 20% = (NPR 60,000)

4. 850,000 x 30% = NPR 255,000

Total Tax = NPR 335,000

TDS Per Month = 335,000/ 12 = 27,916.67 or NPR 27,917 per month.

Income From Business - Nepal

Taxable Income and computation of tax from Business (Income tax act 2058, nepal) Important Sections: Section – 2 ka. ja., s...