Taxation In NepalTU Board 2080
Differentiate between income year and assessment year.
2Answer
| **Feature** | **Income Year** | **Assessment Year** |
|------------------------|------------------------------------------------------|----------------------------------------------------|
| **Definition** | The 12-month period (April 1 to March 31) in which income is earned. | The 12-month period (April 1 to March 31) following the income year when tax is assessed and paid. |
| **Purpose** | Determines when income is generated for tax purposes. | Determines when tax liability is calculated and paid. |
| **Example** | If income is earned from April 1, 2080, to March 31, 2081, the income year is **2080/81**. | The assessment year for income earned in 2080/81 is **2081/82**. |
| **Tax Law Reference** | Section 2(22) of the Income Tax Act, 2058 (amended). | Section 2(23) of the Income Tax Act, 2058 (amended). |
| **Key Point** | Income earned in the income year is taxed in the **next** assessment year. | Tax is assessed and paid in the assessment year, not the income year. |
Discussion
Loading…
More Taxation In Nepal questions
Define direct tax with example.TU Board 20822What do you mean by “Non chargeable business assets”?TU Board 20822Explain the meaning of “Canon of Certainty”?TU Board 20822What do you mean by Permanent Account Number (PAN)?TU Board 20822Briefly describe the provision related to quantification of accommodation facilities provided to an employee.TU Board 20822William is foreign citizenship holder arrived in Nepal on 1st Falgun, and stayed in Nepal at the end of Ashadh of previous income year. He earned in Nepal Rs.…TU Board 20822