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4 views

Untitled document (6)

Yyhhjjjheujdjdhdjdndjdhdjdhdhhehehdhdhdhdhhdhdjrhdhhdhdhrhrhhrhdhddhuwuwuehdhdhuduehedhnsjsuduudhdhjd

Uploaded by

skymeans1234
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1.

Problem 1 [20 Marks]​ ​ ​ ​ ​ ​

Ans:​ ​ ​ ​
A tax is a mandatory fee or financial charge levied by a government on an individual​
to collect revenue for public works. Paying taxes to the government is an integral part of
everyone’s life.

To calculate the income tax a person owes in Nepalese Rupees based on their annual
income and deductions, using a defined tax rate table.

Procedure:

1.​ Input Data​


Collect the data below from the table:​

○​ Annual Income​

○​ Deductions:​

■​ Employees Provident Fund (EPF)​

■​ Life Insurance Premium​

■​ Citizen Investment Trust (CIT)​

Calculate Total Deductions​


Total Deductions = EPF + Insurance + CIT

Calculate Taxable Income​


​
Taxable Income = Annual Income - Total Deductions

(If negative, treat as zero)

2. Apply Tax Rates​


Use the table given to calculate the total tax:
Taxable Income (Rs) Tax Rate

0 to 50,000 1%

50,000 to 2,00,000 10%

2,00,000 to 3,00,000 20%

3,00,000 to 10,00,000 30%

10,00,000 to 30,00,000 36%

30,00,000 and above 39%

The tax is computed progressively for each slab.​

3. Calculate the Total annual Tax​


4. Output Results​
Salary
Tax Rate​
Taxable Amount​
Amount Left After Tax

5. Handle Invalid Input​


Display an error message and stop the calculation if the salary is negative.​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

This is the screenshot of the tax calculation showing the formula:


​ ​ ​ ​

Your tests of procedure should include the following values, which should be
included in your final presentation.
a) tax (Rs. 4,05,000)

Deductions:

●​ Employees Provident Fund Organisation: (Rs. 10,000)


●​ Life Insurance premium: (Rs. 68,000)
●​ Citizen Investment Trust:( Rs. 0)

Ans:

After calculating the tax using Excel, we found that when a person’s salary is Rs.
4,05,000, they owe Rs. 43,600 in annual tax and Rs. 3,633.33 in monthly tax.​ ​
​ ​

​ ​ ​ ​ ​

b) tax (Rs. 8,09,090)

Deductions:

●​ Employees provident fund organization: (Rs. 15,000)


●​ Life Insurance premium: (Rs. 20,000)
●​ Citizen Investment Trust:( Rs. 5,000)

Ans:
After calculating the tax using Excel, we found that when a person’s salary is Rs.
809090, they owe Rs. 176227 in annual tax, Rs. 14685.583 in monthly tax, and their net
income after tax is Rs. 632863.

c) tax (Rs. 19,10,000)

Deductions:

●​ Employees provident fund organization: (Rs. 0)


●​ Life Insurance premium: (Rs. 2,50,000)
●​ Citizen Investment Trust:( Rs. 50,000)

Ans:

After calculating the tax using Excel, we found that when a person’s salary is Rs.
1910000, they owe Rs. 465100 in annual tax, Rs. 38758.33 in monthly tax, and their net
income after tax is Rs. 1444900.
d) tax (Rs. 2,108,790)

Deductions:

●​ Employees provident fund organization: (Rs. 1,50,000)


●​ Life Insurance premium: (Rs. 30,000)
●​ Citizen Investment Trust:( Rs.. 25,000)

Ans:

After calculating the tax using Excel, we found that when a person’s salary is Rs.
2108790, they owe Rs. 570864.4 in annual tax, Rs. 47572.033 in monthly tax, and Rs.
1537925.6 in net income after tax.

​ ​ ​

​ ​

​ ​ ​ ​ ​

​ ​ ​ ​
​ ​ ​

e) tax (Rs. 31,800)

Deductions:

●​ Employees provident fund organization: (Rs.. 0)


●​ Life Insurance premium: (Rs. 5,000)
●​ Citizen Investment Trust:( Rs. 0)

Ans:

After calculating the tax using Excel, we found that when a person’s salary is Rs. 31800,
they owe Rs. 268 in annual tax, Rs. 22.33 in monthly tax, and Rs. 31532 in net income
after tax.
f) tax (Rs. - 50,000)
Deductions:

●​ Employees provident fund organization: (Rs 0)


●​ Life Insurance premium: (Rs. 0)
●​ Citizen Investment Trust:( Rs. 0)

Ans:​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

While calculating the tax if the salary is invalid, i.e negative value, a message box
appears with an error message in Excel, and we can not find the tax of negative income
as income can not be in a negative value.
​ ​ ​ ​ ​
​ ​ ​ ​
​ ​ ​
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