Group A

Prepare salary sheet showing calculation of TDS from employer side and
one month’s salary payroll sheet showing the net salary to be provided.
Salary sheet should be prepared in Excel.
Prepare ETDS returns of salary of staff in the format specified by IRD
manually from employer’s side.
Payroll sheet should contain at least 100 staff. The salary should range from
maximum 10,00,000 per months to Rs. 20,000 per month. Student can add
other facility and allowances along with social security allowances and
deduction as per social security act.

Group B

Mr. Bhai Raja has been working in Bank as a Manager. Beside job in Bank,
he used to provide consultancy in Firm as a part time staff. During the year
he has earned following income

Monthly Salary: 40,000

Dashain Allowances: 40,000

Education Allowances: 2000 per month

Dearness Allowances: 2000 per month

Bonus: 60000

Amount received from firm for providing consultancy as a staff: 6000 per
month.

All incomes are stated in gross without deducting TDS by withholding

agent.

He has been provided with additional facility:

a. Vehicle facility with driver which can be used official and business
purpose.
b. Driver has been provided monthly salary of Rs. 8000 per month
c. Repair and maintenance cost of Rs. 25,000 and fuel cost of Rs. 10,000
for that Vehicle incurred during the year which is bear by his office.
d. He has been provided with accommodation facility.
e. Telephone cost of his accommodation Rs. 2000 per month which is
bear by his office. Out of which 50% is his personal.
f. He has provided with Guard facility in his office. The monthly salary
of guard is Rs. 6000 per month. While paying salary to Mr. Bhai Raja,
Rs. 3000 has been deducted for the use of Guard facility in his
accommodation.
g. He has been provided with loan facility of Rs. 10,00,000 at 5% per
annum. If same loan is provided to others, his bank charge 8% per
annum.
h. During the year, he has obtained one-month equivalent basic salary
as a leave encashment.
i. Bank has deposited 10% of additional salary in employee provident
fund and same amount will be deducted from his salary and
deposited along with additional salary. Bank also deposits Rs. 20000
per month in CIT on his request by deducting his salary.
j. During the year he has provided donation of Rs. 60000 to tax exempt
organization
k. He has purchased insurance policy for him and for his wife of Rs.
250,000 and Rs. 150,000 respectively. He has paid Rs. 19,000 and
14,000 premiums for that policy during the year.
l. During the year, he has made expenses of Rs. 20,000 on health
checkup in TU Teaching Hospital.
m. During the year he has opted for single.
 Calculate taxable income, tax liability and net tax liability of Mr, Bhai
Raja if his bank has deducted Rs. 895 per month TDS and 15% on part
time payment by firm.

Condition 2

Is it compulsory to file tax returns during the year by Bhai Raja? Discuss
along with reason. What will happen if Bhai Raja do not file tax returns.

Condition 3

Bhai Raja has register sole proprietorship firm during the year. He has
asked you regarding PAN. Whether he should apply for separate PAN for
his sole proprietorship firm.

Condition 4

Bhai Raja has following transaction from his proprietorship firm during the
year:

Total sales during the year= 18,00,000

Total expenses = 16,00,000

During the year, he has paid Rs. 200,000 in cash to his suppliers.

Calculate tax liability by applying up to case 4 during the year.

Condition 5

Bhai Raj feels difficult in calculation of detail tax calculation and seeks your
advice for filing tax returns as a presumptive tax payer of small business
person.

As per him, if he pays Rs. 7000 as presumptive tax payer then his income
tax will be clear of his sole proprietorship firm. Is this possible?
Condition 6

Bhai Raja has sold listed shares and has made net gain of Rs. 250,000 before
deducting tax by broker during the year. Calculate taxable income, tax
liability and net tax payable during the year.

Prepare income tax return of Bhai Raja in the format specified by IRD.

Group C

Study the financial statement which is attached along with this question
with additional information. Prepare tax return as per format specified by
IRD.

Group D

Discuss provision of international taxation specified in Income Tax Act

2058. Discuss double tax avoidance treaty in summarized form which is
done by Nepal and its implication on Nepalese taxation system.