Kathmandu. The government has proposed that parents enrolling their children in private educational institutions can deduct up to 25 percent of their annual education expenses from taxable income.
The Finance Bill presented by the government in the House of Representatives on May 29 has proposed to reduce 25 percent of the annual education expenses paid for their children from taxable income or Rs 25,000, whichever is less.
If the proposal is passed, parents who have enrolled their children in a school or campus will be able to claim income tax exemption on the basis of the tuition fees they pay annually. This arrangement will provide relief to middle-class parents who have enrolled their children for higher education in boarding schools and colleges with investment from the private sector.
