Taxation focuses on the fundamental principles of direct and indirect taxes within the national regulatory framework. It emphasizes the basic computation of taxable income, the mechanics of VAT, and the essential statutory requirements for individual and business compliance.
The Taxation course at the Foundation Level of ICAN provides students with basic knowledge of the Nepalese taxation system. It introduces fundamental concepts of income tax and value added tax (VAT), focusing on simple computation, compliance procedures, and practical understanding. The course builds a strong foundation for advanced taxation studies and prepares students for entry-level roles in accounting and taxation.
Meaning, nature, and objectives of taxation
Importance of taxation in economic development
Types of taxes: Direct and Indirect
Overview of Nepalese tax system
Learning Outcome:
Students will understand the purpose and structure of taxation in Nepal.
Role of Inland Revenue Department (IRD)
Basic tax administration framework
Rights and duties of taxpayers
Introduction to tax laws and regulations
Learning Outcome:
Awareness of tax authorities and basic administrative processes.
Meaning of income and taxable income
Resident vs non-resident concept
Sources of income: employment, business, investment
Exempt income basics
Learning Outcome:
Students will understand fundamental income tax concepts.
Basic computation of employment income
Introduction to business income (simple cases)
Basic deductions and allowances
Tax rates and slabs (individuals)
Learning Outcome:
Ability to calculate simple income tax liabilities.
Concept of TDS
Basic transactions subject to withholding
Simple rates and compliance requirements
Learning Outcome:
Students will understand the basic mechanism of tax deduction at source.
Meaning and features of VAT
VAT registration requirements
Input tax and output tax concept
Basic VAT computation
Learning Outcome:
Students will understand how VAT operates in business transactions.
Filing of basic tax returns
Payment of taxes and deadlines
Record keeping and documentation
Introduction to penalties and fines
Learning Outcome:
Awareness of basic compliance requirements in taxation.
Importance of ethical behavior in taxation
Tax avoidance vs tax evasion (basic idea)
Professional responsibility and integrity
Learning Outcome:
Students will develop ethical awareness in handling tax matters.
Simple tax computation problems
Basic VAT examples
Real-life scenarios for tax understanding
Application of concepts in small business context
Learning Outcome:
Enhance practical understanding through simple problem-solving.
By the end of this course, students will be able to:
Understand the basic structure of the Nepalese taxation system
Perform simple income tax and VAT calculations
Comply with basic tax procedures and requirements
Recognize taxpayer rights and responsibilities
Apply ethical principles in taxation practices
Introduction to Taxation
Tax Authorities and Administration
Basic Income Tax Concepts
Simple Income Tax Computation
Introduction to Withholding Tax (TDS)
Introduction to VAT
Tax Compliance and Procedures
Ethics in Taxation
Practical Application & Case Studies