Income Tax Rate applicable on Employment Fiscal Year 2077/78 (2020/21)

Income Tax Rate applicable on Employment Fiscal Year 2077/78 (2020/21)

Income tax rate for the employment income is taxed in Nepal on progressive income tax basis income tax rate range from 1% to 36% which are presented as below. Tax rate applicable on employment are charged in individial and couple assessment basis. Tax on propreitorship firm is also taxed on the same basis.

Individual Assessment

Slab Amount Tax Slab Tax Rate
0-4,00,000 First 400,000 1%
4,00,001-5,00,000 Next 100,000 10%
5,00,001-7,00,000 Next 200,000 20%
7,00,001-20,00,000 Next 13,00,000 30%
20,00,000+ Above 20,00,000 36%

Couple Assessment

Slab Amount Tax Slab Tax Rate
2077/78
0-4,50,000 First 450,000 1%
4,50,001-5,50,000 Next 100,000 10%
5,50,001-7,50,000 Next 200,000 20%
7,50,001-20,00,000 Next 12,50,000 30%
20,00,000+ Above 20,00,000 36%

 

First slab of 1% is not applicable in following case.

  1. Contribtuion to is made on Contribution based social security fund
  2. If the income is made from propreitorship firm business
  3. Income is made from pension fund
  4. Contribtuion is made for contribution based pension fund.