Assessment-1

Attempt all the questions. Each question carries 5 marks.

1. What is taxation? What are the principles of taxation?

2. When is a person resident in Nepal? What do you mean by public expenditures?

3. Ms. Shruti has a salary income of Rs. 9,00,000 p.a. in the year 2076/77. She
retired in the end of the year and received Rs. 25,00,000 as retirement payment.
Her contribution to Approved Retirement Fund for the year was Rs. 80,000. She
also paid a life insurance premium of Rs. 40,000 for the year. Calculate her
income tax liability for the income year 2076/77?

4. John, a citizen of UK, arrives Kathmandu on 5th Ashad 2077 and returns on 20
Magh 2077. What is residential status of John in the income year 2076/77 and
2077/78?