According to the 15th Amendment to the Income Tax Rules, 2059, published in Nepal Rajpatra – Additional Issue 7(Ka) there have been two major changes in Employment Tax in favor of employees.
1. Retirement Fund Maximum Eligible Limit as per Rule 21 has been increased to 5,00,000 for all the employees contributing to any approved retirement fund.
Earlier it was up to Rs. 5,00,000 if employee was contributing to Social Security Fund and in case of other approved retirement fund, it was up to Rs 3,00,000 only.
2. Medical Tax Credit limit as per Rule 17 (3) has been doubled to Rs. 1,500.
Earlier it was Rs. 750.
The amendment to the Income Tax Rules will apply from Shrawan 1, 2081 (FY 2081/82).
These changes have already been incorporated in RigoHR and our Cloud Customers will receive these changes automatically on Shrawan 1, 2081.
