Nepal Progressive Income Tax Engine
Dynamic Bikram Sambat payroll engine modeling progressive tax slabs, allowable retirement deposits (SSF, EPF, CIT), insurance deductions, and net take-home salary under Inland Revenue Department rules.
Assessment Parameters
Monthly Compensation
Retirement Funds & Allowable Deductions
Tax Slab Breakdown Ledger
Taxable Basis: Rs. 691,000| Bracket Name | Threshold Span | Taxable Amount | Nominal Rate | Tax Payable |
|---|---|---|---|---|
| Slab 1 (Base Band) | Rs. 0 - 1,000,000 | Rs. 691,000 | 0% | Rs. 0 |
Monthly Payout Summary
Statutory Caps & Reliefs
Laboratory Methodology & Mathematical Algorithms
Detailed computational model implemented in pure TypeScript based on Schedule 1 of Nepal Income Tax Act, 2058.
1. Statutory Retirement Ceiling
Under Section 63, contributions to approved retirement funds (EPF, CIT, Pension/SSF) are deductible up to the minimum of three boundary limits:
Where Cap = Rs. 500,000 for formal Social Security Fund / Pension contributors, or Rs. 300,000 for conventional EPF/CIT contributors.
2. Social Security Tax (SST 1%)
The baseline 1% tax on the first income bracket constitutes a dedicated Social Security Tax. However, contributors actively registered in the formal Social Security Fund (SSF) or Pension Scheme are statutory exempt (rate = 0%).
For FY 2083/84 reforms, the first progressive bracket extends to Rs. 1,000,000 uniformly across single and couple categories.
3. Effective vs Marginal Rate
The marginal tax rate represents the highest slab rate applied to the last rupee earned, while the effective tax rate models actual tax paid relative to total gross remuneration:
Female employees assessable under individual status receive an additional 10% direct tax rebate credited against calculated tax liability.