INCOME TAX

AND
CAPITAL GAIN
Presenter:
Sushovan Amatya
Shreyan Shrestha
Shlok Rizal
Types of tax in Nepal
 Nepal Taxation or tax is categorized by two ways
 Based on charging:-
 a)Direct tax: Income tax, House taxes, property tax.
 b)Indirect tax: Value added tax, Excise duty ,anti-dumping
duty,octroi
 Based on Pattern of tax rate :-
 a)Progressive-natural person has taxed at progressive tax
rates in Nepal from 0%,1%,2.5%,5%10%,20% and 25%
 b)Proportional tax or Corporate tax-In this, whole taxable
income is taxed at same rate. In Nepal, we have 20%,25%
and 30% corporate tax rate in case of entity.
 c)Regressive tax-Motor vehicle income tax, business
presumptive taxes are example of this category.
 Income tax is a certain percentage of your income that you
have to pay regularly to the government.

Charge of income tax

 Income tax is charged in assessment year at rates
specified by the finance act applicable on 1st April of the
relevant assessment year
 It is charged on the total income of every person for the
previous year
 Total income is to be computed as per the provision of
the act
 Income tax is to be deducted at source or paid in
advance wherever required under the provision act
 Difference Between Capital gain &
Income Tax
Income Tax Capital Gain
 Based on earned • Measured on the
wages and income difference between
interest what you bought or
 Income Tax Rate sold on investment
• Rate can range from
can be as low as
15% to as high as 0 for lower income
39.6% households up to
20%
THANK YOU