|Re-Current Expenditure||803 Billions||62.83%|
|Capital Expenditure||335 Billions||26.21%|
|Financial Management||140 Billions||10.97%|
|Total Budget Allocated||1279 Billions||100.00%|
Source of Budget
|Head||Amount in Billion|
|Repayment of debt principal||15.00|
|Cash reserve of fiscal year 2016-17||102.73|
Major Highlights of Finance Bill 2074
- Allocation of budget to Local level Rs. 225.05 Billion.
- Earthquake Rehabilitation Budget Rs 146 Billion.
- Programs for Energy sector got the budget of Rs. 62.47 billion .
- Budhigandaki Hydropower Project got the budget of Rs 5.33 Billion.
- Nijghad,Gautam Buddha and Pokhara International airports jointly got Rs. 13.72 billion.
- Hulaki Rajmarga got the Budget of Rs 4.27 Billion.
- Kathamandu-Nijghad Fast Track garnered Rs 10.14 Billion.
- Melamchi water project got the budget of 6.57 billion and is targeted to be completed within this year.
- Residential Budget Rs 2.44 Billion Under Janata Aabas
- Prime Minister Agricultural fund Rs 5 Billion.
- National trading, food organization, agricultural equipment center etc to be merged and national suppliers is to be created.
- Health Insurance to all people with in 3 years.
- Both Life and General Insurance Company shall now re-Insure a portion of their risk with Nepal Reinsurance Company Ltd.
- Newly appointed government employee from Shrawan 1, 2074 shall have to contribute towards retirement fund while drawing salary for each month.
- At least one branch of commercial bank at each of the Village Municipality and municipality needs to be established and the banking operation of each local level needs to be done through commercial bank only.
- Individual going abroad needs to open bank account compulsorily for remittance purpose.
- Newly appointed government employee from 1st Shrawan,2074 shall have to contribute towards retirement while drawing salary for each Government shall also contribute for the same fund.
INCOME TAX PERSONAL TAX
For Resident Person
There has not been any change in the Tax Rates applicable to the Resident Person from the Budget this year. Details of the applicable tax rates have been provided below.
FY 2074/75 (2073/74)
|Assessed as Individual||Assessed as Couple|
|First Tax slab||
In case the Taxable Salary of an Individual is more than Rs. 25 Lakhs, additional tax at the rate of 40 percent shall be levied on the tax applicable on the income above Rs. 25,00,000 (i.e. Above Rs. 25,00,000, Tax Rate of 35% is applicable).
For Non Resident
|S. N.||Nature of transaction||
|1||Income earned from normal transactions.||
25% flat rate
25% flat rate
|2||Income earned from providing shipping, air transport or telecommunication services, postage, satellite, optical fiber project.||
|3||Income earned providing shipping, air transport of telecommunication services through the territory of Nepal.||
Repatriation by Foreign Permanent Establishment
Notes on Income Tax
- Natural person working at remote areas are entitled to get deduction from taxable income to a maximum of Rs. 50000.
- Natural person with pension income included in the taxable income shall be entitled to deduct from taxable income an additional 25% of amount prescribed under first tax slab.
- Incapacitated natural person shall be entitled to get deduction from taxable income an additional 50% of amount prescribed under first tax slab.
- A Resident natural person who has procured life insurance and paid premium amount thereon shall be entitled to a deduction of actual annual insurance premium or Rs. 20000 whichever is less from gross taxable income.
- A Resident natural person who has procured Health Insurance and paid premium amount thereon shall be entitled to a deduction of actual annual insurance premium or Rs. 20,000 whichever is less from gross taxable income.
- In case of the employee employed at the foreign diplomatic of Nepal only 25% of the foreign allowances are to be included in the income from salary.
- In case of the employee posted outside Nepal is getting foreign allowance will get 75% rebate of such allowance.
- In case of the female employee whose taxable income is only from employment than 10% rebate is allowed on tax liability.
- In case of individual having income from export, tax rate of 15% is applicable in place of 25%.
- Productive industries, except tobacco and alcohol industries are eligible to get 50% discount on land registration fee.
- Special Industries related with manufacturing, tourist services, electricity production and distribution listed on NEPSE and industries mentioned on section 11(3ga) shall be provided with concession of 15% on applicable tax rate. This budget has included Agricultural, Forestry and Mineral Industries also in to the category of Special Industries.
The aforementioned notes are the repetition of the provisions laid down by finance bill 2073,same will be prevailed for the fiscal year 2074/75 as no citation has been contemplated by finance bill 2074.
Tax on Income From Investment
|S. N||Particulars||FY 2074/75||FY 2073/74|
|Tax withholding on capital gain for natural person on transaction exceeding Rs 3 million
(to be made by land revenue office at the time of registration)
– disposal of land or land & building owned for more than 5 years up to 10 years
– disposal of land or land & building owned for less than 5 years
Income from disposal of non business chargeable assets (Capital Gain) Normal Rate Normal Rate