Cash payment deductibility — amendment
Income Tax Act 2058 (Nepal) — amended provision vs. original
Original provision
Who it applies to
Persons with annual turnover
above NPR 20 lakh
Single cash payment limit
NPR 50,000
Payments above this cannot be deducted as an expense
एक पटकमा पचास हजार रुपैयाँभन्दा बढी
Amended provision
Who it applies to
Any person / entity
No turnover threshold — universal application
Single cash payment limit
NPR 25,000
Payments above this cannot be deducted as an expense
एक पटकमा पच्चिस हजार रुपैयाँभन्दा बढी
Exempted categories — unchanged in both provisions
क
Government of Nepal, constitutional bodies, state-owned corporations, or financial institutions
ख
Primary agricultural producers / farmers for raw produce payments
ग
Retirement contributions or retirement benefit payments
घ
Payments made in locations where banking services are unavailable
ङ
Payments on days banking is closed or due to unavoidable compelling circumstances
च
Amounts directly deposited into the payee’s bank account
Cash payments above NPR 25,000 remain deductible when they fall under any of the six exempted categories (क–च) above, even under the amended provision.
