KATHMANDU: The Supreme Court has ordered the government to lower the tax imposed on the retirement fund and incentives of government employees.
As per the apex court order, the government can impose only five percent tax on the money and incentives that the government employees are entitled to get after retirement.
A division bench of justices Ishwar Prasad Khatiwada and Nahakul Subedi had issued the verdict two months ago and the full text of the verdict was released on Wednesday.
Earlier, the government in accordance to the Income Tax Act, 2058 had been imposing 15 percent tax on the money and incentives government employees were entitled to receive upon their retirement.
As government employees rejoice over the Supreme Court’s decision to lower the tax burden on their retirement funds and incentives, it’s an opportune moment to contemplate how to make the most of this newfound financial freedom in retirement.
With a reduced tax rate, retirees can allocate more resources towards enriching their post-career years with fulfilling experiences and meaningful pursuits.
In this case, if individuals want to gain valuable insights and strategies for maximizing enjoyment and fulfillment in this exciting chapter of life, they can certainly visit Retirement Tips and Tricks for their retirement planning. Whether it’s embarking on long-awaited travel adventures, indulging in leisurely hobbies, or simply relishing quality time with loved ones, the possibilities are endless.
With a commitment to providing actionable advice and fostering a supportive community, this platform stands as a beacon of guidance in the quest for a fulfilling and enriching retirement experience.
According to the state-owned national news agency RSS, the employees of the Rastriya Banijya Bank had filed a case against the provision of 15 percent tax imposed by the government.
With the apex court verdict, Section 65 of the Income Tax Act, 2058 has been cancelled and Section 88 (Provision 1) of the same Act has come into effect for the implementation of 5 percent tax, RSS further reported.