सञ्चित कोष कटौती

Retirement saving is rewarded twice in the Nepali tax system, once when money goes in and again through the employer match. Employee contributions to an approved provident fund are deductible from salary income within the ceilings set by the Income Tax Act, so a portion of pay destined for the fund escapes tax at the contribution stage. Employers enjoy the mirror treatment, deducting their provident fund and gratuity provisions from business income where these are computed under recognised actuarial methods and actually funded. The rules therefore align both sides of the employment relationship behind the same provident fund. Withdrawals are handled with care: the accumulated fund is largely exempt when it reaches maturity, but premature encashment can draw tax and withdraw the incentive. The steady saver who leaves the fund untouched until retirement, keeps the annual statement and reports the contribution in the return gets relief year after year, and that relief compounds unbeaten by any urgent cash need along the way.