TAX CALCULATOR NEPAL
TAX
Net Tax Liability
Monthly
Rs. 1562.50
Yearly
Rs. 18,750
Income & Deductions
Tax Breakdown
| Assessable Income (Rs.) | Rate (%) | Tax Liability (Rs.) |
|---|---|---|
| 500000.00 | 1.00 | 5,000 |
| 137500.00 | 10.00 | 13,750 |
Monthly Tax
Rs. 1562.50
Yearly Tax
Rs. 18750.00
What is an Income Tax?
Income tax is basically the money that a government earns from the citizens and commercial entities in terms of tax payment. The income tax is computed considering the taxable income, which may include wages, profit from business, or any other forms of income. The Income Tax Act, 2058 provisioned governing income tax procedures in Nepal, mentioning tax rates, exemptions, and deductions available to eligible taxpayers.
Income taxpayers of Nepal must fill out the income returns to the Government of Nepal in accordance with tax laws every year. As for the tax calculator Nepal or with the help of a salary tax calculator, estimates tax liability as per income, possible deductions, and applicable tax slabs therein.
HisabSewa provides a simple tax calculator so that one can know an individual’s tax liability at a glance. The tax calculation tools enable tax compliance and easy planning of taxes. make income tax question and answer in html tags
What is an Income Tax Calculator Nepal?
An Income Tax Calculator is utilized to approximate an individual’s tax liability based on their income, deductions, and applicable tax slabs. Nepal follows a self-assessment tax system in which individuals, married couples, and small taxpayers are taxed under different brackets.
Types of Taxable Income in Nepal
The income tax system in Nepal categorizes taxable income into:
- Employment: Salary, bonuses, and benefits
- Business: Income from sole proprietorship or partnership
- Investment: Dividends, rental income, and capital gains
- Windfall Gain: Lottery, prizes, or any unexpected financial gain
Personal Income Tax (PIT) Rates in Nepal (FY 2080-81)
For Individuals
| Taxable Income (Rs.) | Tax Rate (%) |
|---|---|
| Up to 500,000 | 1% |
| 500,001 - 700,000 | 10% |
| 700,001 - 1,000,000 | 20% |
| 1,000,001 - 2,000,000 | 30% |
| 2,000,001 - 5,000,000 | 36% |
| Over 5,000,000 | 39% |
For Married Couples
| Taxable Income (Rs.) | Tax Rate (%) |
|---|---|
| Up to 600,000 | 1% |
| 600,001 - 800,000 | 10% |
| 800,001 - 1,100,000 | 20% |
| 1,100,001 - 2,000,000 | 30% |
| 2,000,001 - 5,000,000 | 36% |
| Over 5,000,000 | 39% |
For Small Taxpayers
| Location of Business | Annual Tax (Rs.) |
|---|---|
| Metropolitan & Sub-Metropolitan Areas | 7,500 |
| Municipality Areas | 4,000 |
| Other Areas | 2,500 |
Deductions: EPF, CIT, and SSF Contributions
- EPF (Employee Provident Fund): 10% of basic salary (Employer contributes 10%)
- CIT (Citizen Investment Trust): Up to रु. 300,000 deductible
- SSF (Social Security Fund): 11% employee contribution + 20% employer contribution
- Life/Health Insurance: Up to रु. 40,000 deductible
How Does the Income Tax Calculator Work?
Just plug in your annual or monthly gross salary, other allowances, and deductions (EPF, CIT, SSF, insurance). The calculator applies the latest tax rates to arrive at your overall tax burden.