Unit 1: Conceptual Foundation 10 LHs
Meaning and objectives of tax; Types of tax: Direct tax and Indirect tax; Canons of taxation; Historical background of income taxation in Nepal; Tax laws: Constitution, Tax Act, Tax rule, Finance Act, Legal precedents established by court; Features of Income Tax Act, 2058; Meaning of basic terms used in income taxation.
Unit 2: Tax Accounting 3 LHs
Registration for Permanent Account Number (PAN); Concepts of tax accounting; Accounting methods for different tax payers; Cash basis of accounting and Accrual basis of accounting; Changing accounting methods.
Unit : 3 Classification of Assesses/Tax payers 6 LHs
Natural person and entities; Single, couple and family; Resident and non-resident; Special provisions for natural person; Entities and retirement savings.
Unit 4: Taxation of Income 6 LHs
Concepts of: Presumptive taxation, Turnover taxation, Personal (non-corporate) taxation, Corporate taxation; Provisions of presumptive taxation and Provisions of turnover taxation in Nepal.
Unit 5: Heads and Sources of Income 2 LHs
Sources: Employment, Business, Investment, Casual gain.
Unit 6: Income from Employment 16 LHs
Concept of employment, difference between employment and profession; Features of employment income, Incomes chargeable under income from employment, Non-chargeable employment incomes; Allowable reductions, exemptions and applicable tax rates; Tax liability and tax payable.
Unit 7: Capital Gain Tax 4 LHs
Concept of capital gain and capital gain tax; Computation of capital gain on disposal of depreciable assets, business assets, non-business chargeable assets; Provisions for adjustment and carry-forward of capital loss, Applicable tax rates for individual and entities.
Unit 8: Income from Investment 10 LHs
Concept of investment income; Difference between investment and business; Chargeable and non-chargeable incomes from investment; Deductible expenses and non-deductible expenses; Assessable income from investment; Set-off and carry-forward of investment losses; Investment income from domestic sources and foreign sources; Tax liability and tax payable.
Unit 9: Valuation of Stocks, and Depreciation 10 LHs
Methods of stock valuation, Adjustments of over and under valuation of stocks; Calculation of cost of trading stocks; Assets pooling system of depreciation, Calculation of depreciation basis and allowable depreciation; Provisions for unabsorbed pollution control cost, research and development cost and repairs expenses; Provisions of additional depreciation allowance.
Unit 10: Business Loss 6 LHs
Concept of assessed business loss, Set-off of business loss, Carry forward of business loss.
Unit 11: Income from Business 20 LHs
Concept of business income; Concepts of capital and revenue incomes and expenses; Chargeable and non-chargeable incomes from business; Deductible and non-deductible expenses; Assessable income from business; Tax liability and tax payable.
Unit 12: Total Assessable Income 6 LHs
Concepts of total assessable income and taxable income; Allowable reductions: retirement contribution, insurance premium, remote area allowance; Reductions of additional exemption limit for the persons having pension income and disabled individual, Reduction of foreign allowance, Reduction of donations
Unit 13: Tax Liability and Tax Payable 6 LHs
Statutory exemption limit; Progressive slab rates and flat rates; Tax concessions; Adjustments of advance tax; Tax deduction at source (TDS) and Tax credits; Tax payable and tax clearance.
Unit 14: Value Added Tax (VAT) 16 LHs
Concept, principles and types of Value Added Tax (VAT); Characteristics of Vat: Burden shifting, multi- stage imposition, zero-rating, deletion of cascading effect, substitute of sales tax; Evolution of VAT, Origin and evolution of VAT in Nepal; Methods of Vat: Addition, Subtraction, Tax credit; Accounting of VAT: purchase book, sales book and VAT book; Collection, realization and refund of VAT; Penalties, actions and appeal
Unit 15: Rights and Duties 5 LHs
Rights of tax Authorities: Government of Nepal, Inland Revenue Department (IRD), Director General (DG), Chief Tax Officer and other officers; Rights and duties of taxpayers.
Unit 16: Tax Collection and Realization 6 LHs
Concept of tax collection, realization, remission and refund; Methods of tax collection: installment, withholding (tax deduction at source, TDS), self-assessment, presumptive tax; Methods of tax realization, Provisions of refund and remission.
Unit 17: Penal Provision, Review and Appeal 8 LHs
Concept and differences of penalty and offence; Provisions relating to fees and interest, provisions relating to offences; Concept of administrative review and appeal; Administrative decisions eligible for review, procedure of filing objections for administrative review; Provisions relating to appeal to Revenue Tribunal.
Unit 18. Tax Auditing 10 LHs
Relationship between Taxation and Auditing; Concept, types and major functions of auditing; Internal control: Internal auditing and internal check; Concept, scope and objectives of tax auditing; Provisions of tax auditing in Income Tax Act, 2058 and Value Added Tax, Act,2052.