Friday Mar 29, 2024
Friday Mar 29, 2024

SC: Only 5 percent tax on retirement benefits


Nepalnews
RSS
2022 Jan 26, 18:42, Kathmandu
The Supreme Court has reinstated the House of Representatives.

The Supreme Court has decided that only five percent tax will be levied on the retirement benefits of government employees. The issue was mentioned in the verdict of joint session of Justices Ishwor Khatiwada and Nahakul Subedi made public on November 7.

Earlier, the government had decided to deduct 15 percent tax from retired employees under the Income Tax Act 2001. Rastriya Banijya Bank employees had filed a writ petition in the court against the decision. In the same case, the court has ruled that only five percent tax will be levied.

There is a provision of deducting tax at the rate of 5 percent only on the profit calculated as per clause B of sub-section 1 of section 65 of the said act in case of payment on leave to the employee.

Previous decision has been revoked and only 5 percent tax has been deducted as per the restrictive phrase of section 88 of the same Act. With this decision of the Supreme Court, only five percent tax will be levied on the amount including benefits received by government employees when they retire.

READ ALSO:

tax retirement benefits Supreme Court constitution Law Government employees
Nepal's First Online News Portal
Published by Nepalnews Pvt Ltd
Editor: Raju Silwal
Information Department Registration No. 1505 / 076-77

Contact

KMC-02, UttarDhoka,
Lazimpat, Nepal

Newsroom
+977–01–4445751 / 4445754

E-mail
[email protected] [email protected]

Terms of Use Disclaimer
© NepalNews. 2021 All rights reserved. | Nepal's First News Portal