Income Tax Rate In Nepal For Fiscal Year 2079 / 80: A natural person is a person who has a human, human, or another gender (Human Beings) and also a sole proprietorship owned by a natural person. A natural person who wants to earn assessable income or has to deduct tax in advance on payment should get a permanent account number (PAN). The tax liability of a natural person is as prescribed in the law, that is, if he refuses to pay the tax, income tax can be collected by selling his house and property at auction.
The natural person must obtain a permanent account number (PAN) from the Inland Revenue Office or the Taxpayer Service Office related to the place of residence or place of business (the place where the firm is the main address of the proprietorship firm) or the place of employment.
A natural person must provide a copy of proof of identity (such as citizenship certificate or passport), photo, professional certificate, or firm registration certificate if doing business and proof of doing business in his own house or a copy of house rent agreement if he is doing business in his own house.
The Income Tax Act, 2058, and the Financial Act of the year concerned have different limits on the amount of tax-exempt exemption. However, if the employment income of a natural person is tax-deductible, there is no social security tax on the income up to the exemption limit from the beginning.
The budget of the Fiscal Year 2079/80 has made it possible for couples with an annual income of up to Rs. 6 lakhs to pay only one percent income tax. Earlier, the limit was Rs. 450,000.
In the case of a single person, only one percent tax will be paid on the annual income up to Rs. 500,000. There has been a demand for changing the income tax threshold for a long time.
The budget has changed the income tax threshold for salaried employees to Rs. 6 lakhs (in case of married).
Now, those earning Rs 6 lakh annually will have to pay only one percent tax. Income above that will be subject to income tax of more than 10 percent.