Income Tax Contribution

Chapter I origin 1. 1-Focus of the Study This is the age of worry education formation (MIS) in the business world, which enables management to provide the withdraw information at optimal cost so manager digest manage in mystic as rise up as giving medication activity activity organizations. MIS screw be defined as the system, which provides proper information that helps management to take management decisions in a timely fashion. Therefore the information served by management information system is rattling crucial for a proper management of a business organization.In a process of receiving information from unhomogeneous sectors, MIS mathematical function various sectors. As salubrious as we send word take place the position of income assess in governing taskation. Income appraise income is the main source of administration measure receipts. If risque sources of income tax receipts income in semipolitical relation tax income, political science can hasten good culture, scotch planning for development of the nation. later knowing ab unwrap the contribution of Income tax in brass tax revenue of Nepal, we can find the strength and weakness of the government functions and method of aggrandizement the revenue. There atomic number 18 various sources of government revenue. Income tax, VAT, springer duty, foreign aid, internal and external loan be the main sources. There ar various users and raise person and sector of Income tax in government revenue. presidential term is the main interested and handles body of income tax. Government can make suitable policies, acts and rules for increasing the government revenue. In current situation, government must contain sufficient revenue for developing the nation. At interpret government expenditures is gradu every in ally increasing but government revenue is not satisfactory.The tendency of income tax in government revenue is not satisfactory up going, even its going down somewhat age. Thinking of taxpayer towards the tax is not positive. The flying field of income tax shows the performance and contribution of taxpayers. Nepal has adopted mix economy. So there is equal contribution of private and worldly concern sector for economic development as well as government revenue. The overall performance of government and taxpayers reflected on contribution of array of income tax in government revenue.Government and financial policymakers can make suitable policies and rules for gathering of mellowed income tax from organizations. compend of income tax in government revenue is the mean(a) of financial and accounting interpretation. We can say that compend of income tax in government revenue is meaningless until and unless it is properly analyzed, interpreted and taken any restorative actions to the best way. Therefore the compendium and interpretation subprogram of government revenue is fulfilled by the analysis of income tax.The idea of introdu cing income tax in Nepal originated along with the front reckon on 21st Magh 2008 B. S. (1952 AD). The first select government finally introduced business concern profit and net income tax income Act 2017 to promise income tax on remuneration and business profit in Nepal. The Business profit and Remuneration evaluate Act 2017 had very narrow coverage that income tax was oblige totally on business profit and remuneration. Since this act could not cover all the sources of income, the Nepal Income tax income Act 2019 replaced it by and by two years to avoid such(prenominal) drawbacks.After a year, Nepal Income Tax Rules 2020 were enacted with the view of implementing the objectives of the income tax act. correspond to the changing condition this act was similarly incapable(p) in fulfilling the needs of changing time, it was replaced by some other, Income tax Act 2031. In the course of development and modernization of income tax system, the refreshed Income Tax Act 2058 h as been enacted. Similarly, the new Income Tax Rules 2059 have been enacted for the effective implementation of the objectives of the Act.The correction will cover the analysis and interpretation of all activities think to income tax such as income tax from Business income, Investment income and Employment income. main(prenominal) subroutine of the probe is to find out the relationship among income tax and other sources of government revenue, the foreshortens of collection of income tax, impart part of income tax in government revenue and to point out the reasons of low collection and imposed of income tax. 1. 2- disputation of the conundrum Income tax is the main source of government revenue. For the development of nation, every government needs advanced revenue.For higher the revenue, the main sources is income tax. The economy of a uncouth flourishes with the flourish of government revenue and collection of income tax and it deteriorates with unsatisfactory performance of Government function in the country. Therefore periodical look backward and analysis of Income Tax in the country is very essential. Performance of Income Tax is very constructive for all stakeholders closely committed with the government revenue as well as for a prosperous economic future of the country. Generating income by any individual or institution is the main sources of income tax.If income is favourable then collection of income tax is overly favourable. Lower contribution of income tax in government revenue negatively affects the countrys development. The divergence of income tax contribution brings the variation of government revenue and government development function. Countrys economic development and government revenue are the closely related parts. For higher revenue, economic development is infallible and for better economic development of a country, high government revenue is required. Nepal is a landlocked country. The trend of collection of income tax is not satisfactory.As retained above, sustainable economic development and good political surround is necessary for growth the income. Income is source of income tax. before long, political situation of Nepal is not good. From one decade its being worse. Here is no good environment for income generating functions. Previously running organizations withal cant perform better. They are going downwards. Individual income is also not a good increasing trend. It affects like a shot income tax and government revenue as well as government activities. The selective information of income tax whitethorn suffer a lot in miss of proper view and analysis practice of it.Currently contribution of income tax in government revenue of Nepal may not sufficient for development of nation. At the analysis period of entropy income tax collection remained below the expected level due to various national and international level. Therefore, this question poll is laborious on trend of income tax collect ion to review and analysis the contribution in government revenue and to draw recommendation for coming period. 1. 3-Objective of the study 1. 3. 1 General Objective To analyze the contribution of Income tax in the government revenue of Nepal. 1. 3. 2 item objective To measure the ability of income tax to converge the government current requirement. To measure the ability of income tax to meet the government long term planning and policies. To measure the operating efficiency and ability to come across for adequate government revenue. To analyze the problems of revenue collection from Income Tax. To suggest some measures for the improvement of Income Tax collection. 1. 4 Signification of the study There are many another(prenominal) a(prenominal) institutions and individual that many contribute for government revenue by income tax. besides their ability and willingness is not so good.The proportion of income tax in government revenue is not appropriate. The trend of income tax collection also is not sustainable and satisfactory. Much income tax acts and rules were implement and many of are active at present. But they are not properly implemented. For many of these problem there is best alternative to analysis the trend and contribution of income tax in government revenue. 1. 5 Research Questions For the effective performance and result of the study and to submit the findings in a core and diminutive form, the important research questions have been structured 1.What is the state of income tax collection? 2. What is the proportion of income tax income for government revenue? 3. What is the trend of income tax collection? 4. What are the findings for coming days? 1. 6 A outline survey of the related literature The related suppositious and previous studies review will be do later on while writing the thesis. Main of these is Budget speech of many fiscal years Performance Review of public and private Enterprises sparing survey of many fiscal year s teaching of Income and Expenditure of many fiscal years controversy of taxation of many fiscal years unalike Acts, Rules and regulations, Ordinance and Circulars related to Income Tax Related Research, Thesis, Articles, Journals, Books, blade site etc. 1. 7 Limitations of the Study The study on Contribution of income tax in the government Revenue of Nepal is not free from the following limitations i) This study is based on financial statements, scotch surveys, teaching of revenue and Income and expenditure, which are subject to limitation of many National and International causes. ii) This study is based on past datas which are provided by IRD or published. ii) The various methods and formulae are been taken as standard formula, which are worked out on the nates of different items and conditions. iv) Mostly secondary winding data are analyzed. v) The area of income tax is very wide, so all the part of it may not be covered. vi) universe a student, different types of re source constraint is another important factor, which has limited the scope of the study. Chapter-II-Research Methodology 2. 1 Research Design A research endeavor refers to the conceptual structure within which the research is conducted.The research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevancy the research purpose within the economy and hands-down to procedure. This study is basically both in uninflected and descriptive. 2. 2 Data collection procedure For the study, secondary data will be collected from IRD, Budget speech, Economic survey, Statement of Income, Income and Expenditure and from other related sources. The secondary data related to income tax and revenue are basically from conk fifteen years. 2. 3 Tools for analysisTo conduct the study, management and statistical tools such as ratio analysis, trend analysis, correlation relapse analysis, variation, weights, diagram, graphs etc. will be used as required by the study. 2. 4 Methods for analysis and manifestation Various results will be calculated by using various management and statistical tools, and formula, which are required for this study. Then the data will be presented on suitable tables, diagrams, graphs and formats with the help of different suitable computer software on the basis of which necessary interpretation and explanation will be drawn. 2. visualise of work The study will be carried out on sequential order, which will be five-spot chapters. The first chapter will begin with the introduction of the study, followed by review of literature, research methodology, presentation and analysis of data and conclusion and recommendation in second, third, fourth and last fifth chapters respectively. 2. 6 Bibliography 1. Amatya, S. K. , Pokharel, B. B. and Dahal, R. K. (2004), Taxation in Nepal, M. K. newspaper publisher and Distributors, Kathmandu, Nepal. 2. Budget speech of the Fiscal Year 2055/056 to 2060/061. 3. Ec onomic Survey of the Fiscal Year 2055/056 to 2060/061. . Income Tax act, 2031(1974) and Income Tax act, 2058 (2002) 5. Income Tax Rules, 2059. 6. Income Tax, Circular Collection 2055/56 to 2060/61. 7. Statement of Income and Expenditure of the Fiscal Year 2055/056 to 2060/061. 8. Statement of Revenue from 2055/56 to 2060/61. 9. Wolf, H. K. , and Pant, P. R. ,(2002), SOCIAL SCIENCE RESEARCH AND thesis WRITING, Buddha Academic Publishers & Distributor Pvt. Ltd. , Kathmandu, Nepal. 10. Web sites http//www. ird. gov. np/index1. php http//www. taxresources. com/ http//www. asosai. org/journal1993/revenue_auditing_in_nepal. htm