Tax-Advantaged Investment Calculator
Compare returns between taxable and tax-advantaged investments.
Calculate Tax Benefits
Tax Comparison
Initial tax saved (if deductible)—
Future value (tax-free)—
Future value (taxable)—
Total tax saved—
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Tax-advantaged investments in Nepal
Certain investments offer tax benefits under Nepal's Income Tax Act.
Tax-deductible investments (Section 11):
• Life insurance premiums
• Provident Fund (PF) contributions
• Citizen Investment Trust (CIT)
• Approved pension schemes
Maximum deduction: Up to 33.33% of assessable income or NPR 5 lakh, whichever is lower
Tax-free returns:
• Interest on CIT bonds
• Certain government bonds
• EPF/PPF interest (partially)
• Life insurance premiums
• Provident Fund (PF) contributions
• Citizen Investment Trust (CIT)
• Approved pension schemes
Maximum deduction: Up to 33.33% of assessable income or NPR 5 lakh, whichever is lower
Tax-free returns:
• Interest on CIT bonds
• Certain government bonds
• EPF/PPF interest (partially)
FAQs
What investments are tax-deductible in Nepal?
Life insurance, PF, CIT, approved pension funds. Maximum deduction: 33.33% of income or NPR 5 lakh.
Is mutual fund investment tax-deductible?
No, regular mutual fund investments don't qualify for tax deductions. Only specific retirement-oriented funds may qualify.
Are returns from CIT taxable?
Interest from CIT bonds is generally tax-free or has favorable tax treatment. Check current tax laws.
Should I invest just for tax savings?
No! Tax savings is a bonus. Invest based on goals, risk tolerance, and returns. Don't let tax tail wag the investment dog.
Can I claim all my insurance premium?
No, there's a maximum limit (33.33% of income or NPR 5 lakh). Also, premium must be reasonable compared to coverage.