Kathmandu. The government has decided to double the limit of insurance premium for residential building to Rs 10,000.
As per the provision announced for the coming fiscal year 2083/84, the house owner can deduct up to a maximum of Rs 10,000 of the insurance premium for residential building. In the budget statement for the current fiscal year 2082/83, such exemption is only up to Rs 5,000.
In the calculation of income tax, any person will have to pay tax only on the remaining amount after deducting up to Rs 10,000 from the insurance premium levied for the residential building.
This provision, which was included in the budget speech unveiled by Finance Minister Swarnim Wagle in the House of Representatives on May 29, will come into effect only after the endorsement of the government’s Finance Bill from both houses of Parliament.
As per the provision, the total income can be deducted up to Rs 40,000 as life insurance and up to Rs 20,000 as health insurance.
