Taxation law in Nepal governs the levy, collection, and administration of various taxes within the country. The main sources of taxation are the Income Tax Act and the Value Added Tax Act. The Income Tax Act regulates the taxation of income earned by individuals, companies, and other entities, with varying tax rates and deductions based on income levels and types of taxpayers. The Value Added Tax Act imposes taxes on the value-added at each stage of production and distribution, impacting the final consumer. Additionally, other taxes such as customs duties, excise duties, and capital gains tax are also levied as per specific transactions and activities. The tax authorities responsible for enforcing these laws are the Inland Revenue Department and the Customs Department. The taxation system aims to generate revenue for the government, promote fiscal discipline, and encourage economic growth while ensuring compliance and fairness among taxpayers.