Section 10 : Exemptible amounts
The following amounts shall be exempted from tax:

 

a) Amount exempted from tax granted to any person entitled to tax exemption facility as provided for in a bilateral or multilateral treaty concluded between Government of Nepal and any foreign country or international organization,

b) Amount received by any natural person for doing employment in the governmental service of a foreign country,

Provided that, -

(1) The person has to be a resident or non-resident person only because of doing employment, and

(2) Such amounts have to be paid from the governmental fund of that country.

c) Amount received by a natural person referred to in clause (b) who is not a citizen of Nepal or by his/her nearest family member from the governmental fund of a foreign country,

d) Amount received by a non-Nepalese citizen appointed in the service of Government of Nepal under a the term and condition of tax exemption,

e) Allowances provided by Government of Nepal to the widow, aged (senior citizen)   or disabled,

f) Amounts received as gift, inheritance or scholarship except the amounts required to be included in computing income pursuant to Sections 7, 8 or 9,

g) Amounts received by an organization entitled to exemption for the following:

1) Donation, gift,

2) Other contributions directly related with an organization entitled to exemption as referred to in Clause (d) of Section 2 without having consideration or without hoping for such contribution, or

3) Amount earned by Nepal Rastra Bank in consonance with its objectives, or

h) Amount received for pension by a Nepalese citizen having retired from the military or police service of a foreign country from the governmental fund of that country.