The progressive Tax on employment between The President of Nepal

and his/her Secretary Will compared through the Tax calculation.

Income Tax on Employment President of Nepal

 Salary And other honorarium made for any item.( Section 8(2) (a)
 Monthly Salary Rs 177531 * 12 = Rs 2130372
 Guest honorarium equivalent to monthly salary per month Rs 177531 * 12 = Rs
2130372
 Festival Expense ( one month salary) 177531
 Dress allowance = Rs 25000
(Non Cash emolument)
 Vehicle and Fuel : If provided by employer; 0.5% of the Salary or 1% of market
value of such vehicle (Section 27 (1) (b) (1) and Rule 13 (1)
= Rs 888
 Residence: If provided by employer; 2% of the Salary (Section 27 (1) (b) (2) and
Rule 13 (2) (a) Rs 3550

Total Gross Income

Cash

 Salary = Rs 2130372
 Guest honorarium = Rs 2130372
 Festival = Rs 177531
 Dress allowance = Rs 25000
Non Cash
 Vehicle = Rs 888 * 12 = 10656
 Residence = Rs 3550 * 12=42600

Total Income Rs4516500

No exemption, No Subtraction (retirement fund, insurance, donation)

Total Income (Taxable Income) is Rs Rs4516500

Now calculation of income Tax

• 400,000|-1 % = 4000|-
 • 500,000|- 10 % in 100,000-= 10,000|-

• 700,000|- 20 % in 200,000-= 40,000|-

• 2,000,000|-30% in 1,300,000|= 390,000|-

• 4516500]-36%in 2516500 = 905940

-10 % as being women (schedule -16) (1349940 -10 % of 1349940)

 Tax to be paid = Rs 1214946

Now income Tax of Secretary

Income

 35990 * 12 Month = 413880

 Provident Fund 10% = 41388
 Festival Allowance % = 35990
 Dress allowance % = 15000

Total Income Rs 506258

Expenses

 Retirement fund 33.33% of total income = 168735

 Insurance Investment 15000
 Medical Insurance 5000
 Donation 8000

Total Rs 196735

Now, Gross Income – Deduction (Rs 506258-196735

Taxable income is 309523

Income tax is 1% 309523 that is 3095.23