Applied taxation focuses on the technical computation of taxable income and tax liabilities through the practical application of statutory laws. It emphasizes regulatory compliance, filing requirements, and the strategic implementation of legal deductions and credits.
The Applied Taxation course at the Application Level of ICAN is designed to develop practical knowledge and application skills in taxation laws of Nepal. It focuses on enabling students to compute tax liabilities, interpret tax provisions, and provide advisory services in real-life scenarios. The course integrates theoretical understanding with practical problem-solving, preparing students for professional roles in taxation, compliance, and consultancy.
Overview of Nepalese tax system
Types of taxes: Direct and Indirect
Structure and role of Inland Revenue Department (IRD)
Sources of tax laws: Income Tax Act, VAT Act, regulations, and directives
Learning Outcome:
Students will understand the framework and administration of taxation in Nepal.
Basic concepts: Person, resident vs non-resident, source of income
Taxable income vs exempt income
Tax rates and slabs
Assessment procedures and tax year
Learning Outcome:
Ability to interpret fundamental tax concepts and determine tax status.
Employment income and its computation
Business income and allowable deductions
Investment income (interest, rent, dividend)
Capital gains taxation
Set-off and carry forward of losses
Learning Outcome:
Students will compute total taxable income and tax liability of individuals.
Taxation of companies and partnerships
Calculation of taxable business income
Depreciation and capital allowances
Special industry provisions (banks, insurance, etc.)
Learning Outcome:
Ability to prepare tax computations for different business entities.
Allowable and disallowable expenses
Personal deductions and rebates
Tax credits (foreign tax credit, medical credit, etc.)
Incentives and concessions
Learning Outcome:
Students will apply deductions and credits accurately to minimize tax liability.
Concept and mechanism of TDS
Applicable rates and transactions
Responsibilities of withholding agents
Final vs adjustable withholding tax
Learning Outcome:
Understand compliance requirements and practical application of TDS.
Concept and features of VAT
Registration requirements
Input tax credit and output tax
VAT return filing and compliance
Exempt and zero-rated supplies
Learning Outcome:
Students will calculate VAT liability and handle VAT compliance procedures.
Tax assessment system
Filing of returns and deadlines
Interest, penalties, and fines
Appeals and dispute resolution
Learning Outcome:
Ability to manage tax compliance and administrative procedures.
Tax planning vs tax evasion vs tax avoidance
Ethical considerations in tax planning
Minimization of tax liability within legal framework
Strategic tax decision-making
Learning Outcome:
Students will develop tax planning skills while maintaining professional ethics.
Comprehensive tax computation problems
Real-life case scenarios
Advisory and consultancy situations
Interpretation of tax laws and judgments
Learning Outcome:
Enhance analytical, practical, and advisory skills required in professional practice.
By the end of this course, students will be able to:
Compute tax liabilities for individuals and businesses accurately
Interpret and apply Nepalese tax laws effectively
Ensure compliance with tax regulations and filing requirements
Provide basic tax advisory and planning services
Handle practical taxation issues in professional environments
Income Tax (Major Portion)
VAT and Indirect Taxes
Tax Procedures & Administration
Tax Planning & Ethics
Practical Problem Solving & Case Studies