1. Dr. Mishra is employed in M. Hospital on 1st Shrawan, 2064, on a pay scale of Rs.

18,000-500-24000-1000-32000. He is getting non participating allowance 25% of starting

salary. He is getting Rs. 2,000 project allowance p.m. During the year he received leave
pay Rs. 24,000. He is getting educational allowance for his children Rs. 2000 per month,
actually he spends Rs. 18,000 for his purpose. He contributes 10% of salary to the
employee P.F. He also contributed 10% of total remuneration to the citizen investment
trust (CIT). The hospital provided him Rs. 50,000 for business promotion expenses but
could certify Rs. 30,000 only. He has received Rs. 1,50,000 for not working in another
hospital as per the agreement made on the request of his employer. He has insured his life
for Rs. 4,00,000 and paid Rs. 18,000 insurance premium per year to Nepal Rastra Beema
Sansthan.
His income from natural resources is Rs. 70,000. It is noted that he has selected as a
couple status for tax purpose.
Required:
1) Assessable income from employment
2) Statement of taxable incom
3) Tax Liability

1. Dr. Mishra is employed in M. Hospital on 1st Shrawan, 2064, on a pay scale of Rs.
18,000-500-24000-1000-32000. He is getting non participating allowance 25% of starting
salary. He is getting Rs. 2,000 project allowance p.m. During the year he received leave
pay Rs. 24,000. He is getting educational allowance for his children Rs. 2000 per month,
actually he spends Rs. 18,000 for his purpose. He contributes 10% of salary to the
employee P.F. He also contributed 10% of total remuneration to the citizen investment
trust (CIT). The hospital provided him Rs. 50,000 for business promotion expenses but
could certify Rs. 30,000 only. He has received Rs. 1,50,000 for not working in another
hospital as per the agreement made on the request of his employer. He has insured his life
for Rs. 4,00,000 and paid Rs. 18,000 insurance premium per year to Nepal Rastra Beema
Sansthan.
His income from natural resources is Rs. 70,000. It is noted that he has selected as a
couple status for tax purpose.
Required:
 Assessable income from employment
 Statement of taxable incom
 Tax Liability
2. Given below is the trading and profit and loss account of Mr. S.S. Trader for the previous year
Particular Rs. Particular Rs.
To Opening stock 1,50,000 By Sales 18,50,000
To Purchase 7,50,000 By Closing Stock 2,50,000
To Freight 1,00,000
To Custom Duty 50,000
To gross profit c/d 10,50,000
21,00,000 21,00,000
To Staff salaries 4,00,000
To office expenses 50,000 By gross profit b/d 10,50,000
To bonus to staff 20,000 By gain on sale of business assets 1.00.000
To commission on sales 10,000 By Royalty from natural resources 1.00.000
To bad debts 4000 By amount accepted for business 50.000
restriction
To telephone charges 10000 By bad debts recovered 20.000
To pollution control cost 300000 By Commission received 2.000
To discount 20000
To Advertisement 20000
To donation to Bir hospital 200000
To travelling and daily 50000
expenses
To advance tax 40000
To Net Profit c/d 198000
13,22,000 13,22,000
Additional Information:
a. Office expenses include Rs. 10,000 spent by the proprietor for his domestic use.
b. 25% of bad debts have no evidence.
c. A car was purchased on Kartik of previous year at a cost of Rs. 12,00,000. It was equally for
both private as well as official purpose. Depreciation on car is to be charged.
d. Only 30% of bad debts recovered were allowed previously.

Required:

i) Net assessable income from business

ii) Statement of taxable income
iii) Tax payable