Very Short Question Answer Briefly state any two tax-exempt amounts. Two tax-exempt amounts are: Amount received by a person entitled to tax exemption privileges under a bilateral or a multilateral treaty or agreement concluded between the Government of Nepal and a foreign country or an international organization. Amount received by an individual from employment in […]
Chapter 5: Capital and Revenue
Very Short Question Answer State the expenses that are treated as capital expenditure according to Income Tax Act, 2058. Income Tax Act, 2058 has treated the following expenses as capital expenditure: Expenditure incurred for feasibility study, exploration and development of natural resources. Expenditure incurred for obtaining assets with useful life of more than 12 months. […]
Chapter 7: Asian And Global Environment
Very Short Answer Question 1. Define globalization. Globalization can be defined as the free flow of goods and services, human resources, capital and information beyond the national borders. The driving factors for the globalization are transportation and communication infrastructure. It is the process of transformation of local phenomena into global ones. 2. What do you […]
Chapter 4: Quantification, Allocation and characterization of Amounts
Very Short Question Answer Describe the provision of quantification of vehicle facility as per Income Tax Act, 2058.(2073) An employer that provides motor vehicle facility to an employee or others for wholly or partly private use, should quantify the benefits in the following ways: If it is provided to employee, labour or any other individual […]
Chapter 5: Socio-Cultural Environment
Very Short Question Answer 1. Enlist the social class in Nepal. Nepalese society has three classes. Upper class Middle class Lower class 2. Define socio cultural environment of business. Socio-cultural environment of business refers to all the cultural surroundings that influence business activities. It includes knowledge, customs, traditions, morals, and values, religion, language, symbols, works […]
Chapter 3: Tax Accounting And Timing
Very Short Question Answer Briefly state the accounting methods to be applied by different taxpayer. The accounting methods to be applied by different taxpayers are summarized below: Persons Income Head Accounting Method Individual Sole trader/proprietor Partnership firm Company Employment, Investment Business Business, Investment Business, Investment Cash basis Cash or accrual basis Cash […]
Chapter 2: Taxation of Income in Nepal
Very Short Question Answer Enumerate any four characteristics of Income Tax Act 2058. The four characteristics of Income Tax Act, 2058 are given below. Confinement of all tax related matters in a single act. Detailed definitions of key terminologies. Broad tax base Allowed deduction for all related expenses Explain the relationship of Income Tax Act […]
Chapter 1: Conceptual Foundation
Very Short Question Answer Define tax. State any two canon of taxation.(2073) Tax is defined as a compulsory contribution from a person to the government to defray the expenses incurred in the common interest of all, without reference to special benefit conferred. The two canons of taxation are as explained below: Canon of Equality: This […]
Chapter 4: Economic Environment
Very Short Questions Answers 1. Write about the economic dimension. Dimensions of an economy refer to the facets of economy of a country. They are reflected through demographic forces, income level, income distribution, growth of agricultural and industrial activities, development of service sector, level of employment, balance of payments, rate of inflation, urbanization, and globalization. […]