Calculation of Income from Employment

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Calculation of Income from Employment
Calculation of Income from Employment

We will look after the Calculation of Income from Employment.

Calculation of Income from Employment

Following is the headings included in income from emplyment.

ParticularsDetailsAmount
Salary, Wage, and Commission XXX
Salary in Lieu of LeaveXXX
Overtime PayXXX
Price & Gift relating to employment XXX
BonusXXX
Dearness AllowanceXXX
Rent AllowanceXXX
Entertainment and transport AllowanceXXX
Cost of living SubsistenceXXX
Other Personnel AllowanceXXX
Reimbursement of Personnel expenses of employee XXX
Payment received for accepting restriction regarding employmentXXX
Compensation received for loss or redundancy of employmentXXX
Other Payment made in respect of employment.XXX
Retirement contribution from employer.XXX
Amount of Accommodation Facility.XXX
Amount of Vehicle Facility.XXX
Amount of Service of House Keeper, Chauffeur, Gardener, or other domestic assistants.XXX
Any meals refreshment or entertainment provided by employer.XXX
Amount of service related to drinking Water, electricity, telephone, and other utilities.XXX
Under payment of Interest on loan taken from employer.XXX
Other Benefit provided by employer.XXX
Assessable Income from EmploymentXXX

Calculation of Taxable Income

ParticularsDetailsAmount
Assessable Income from Employment XXX
Assessable Income from Business ( If any )XXX
Assessable Income from Investment (If any )XXX
Total Assessable IncomeXXX
Less: Contribution to recognized retirement fundsXXX
Adjusted Taxable IncomeXXX
Less: Donation to Tax Exempt Organization XXX
Less: Remote Area AllowanceXXX
Less: Foreign Area allowance XXX
Less: Pension Exemption XXX
Less: Exemption of Disabled XXX
Less: Life Insurance Premium XXX
Less: Health Insurance Premium XXX
Taxable Income

Computation of Tax Liability of Resident Natural Person 2078/79

ParticularsDetailsAmount
Up to Rs. 4,00,000 to Rs. 4,50,000 @ 1%XXX
Next Rs. 1,00,000 @ 10%XXX
Next Rs. 2,00,000 @ 20%XXX
Above 7,00,000 / 7,50,000 up to 20,00,000 @ 30%XXX
Above 20,00,000 @ 36%XXX
Total Tax Liability XXX
Less: Women Tax CreditXXX
Less: Medical Tax Credit XXX
Less: Foreign Tax Credit XXX
Less: Withholding TaxXXX
Tax PayableXXX

Computation of Tax liability of Non-resident Natural Person

ParticularsAmount
Tax Rate @ 25%XXX
Tax Payable XXX

Other Important Links:

Income tax Rate in Nepal for Employment of 2079/80: CLICK HERE

TDS rate in Nepal: CLICK HERE