Section 11 : Professional exemptions and facilities:
1) No tax shall be levied on an income earned by carrying on an agricultural business by getting one registered as a firm, company, partnership and corporate body and on agricultural income other than that earned from an agricultural business in the land as referred to in clauses (d) and (e) of Section 12 of the Act relating to Land, 2021(1964).

2) No tax shall be levied on the income of a cooperative organization and saving and credit cooperative organization or institution, which has been registered and operated under the Cooperatives Act, 2048 (1991) and which carries on agricultural and forest based industries such as professional forest related enterprises inclusive of sericulture and silk production, horticulture and fruits processing, animal husbandry, dairy industry, poultry farming, fishery, tea gardening and processing, coffee farming and processing, herbiculture and herb processing, vegetable seeds farming, bee keeping, honey production, rubber farming, floriculture and production, leasehold forestry, agro-forestry etc., cold storage established for the storage of fruits, agro-seeds, pesticides, fertilizers and agricultural inputs (except those operated with mechanical power). No tax shall also be levied on the dividends distributed by such organization or institution.

3) Tax shall be levied as follows on the income earned by any person from a special industry in an income year:

a) If the person give direct employment to Six Hundred or more Nepalese citizens through out the year, Ninety percent of the rate of tax leviable on the income of that year,

b) If a special industry has been operated in remote, undeveloped and underdeveloped areas, respectively Seventy, Seventy-Five and Eighty percent of the tax leviable on income of the years for ten income years including the income year in which such an industry started operating.

4) In computing the income by the person entitled to exemption pursuant to Sub-sections (1), (2) or (3), such person has to compute the income as mentioned in the Sub-sections as if that only income were derived by other separate persons.

5) A person who is in a position to have more than one exemption in respect of the same income pursuant to clauses (a) and (b) of Sub-section (3) shall enjoy only one exemption chosen by him.

6)    Notwithstanding anything contained in Sub-section (3), in cases where any other person has used the properties used to operate the industry referred to in clause (b) for the operation of the industry of the same type previously, the period during which they have been so used shall also be reckoned, while reckoning the time-limit referred to in that Sub-section.

Explanation: For purposes of this Section:-

(a) "Agricultural business" means a business of producing crops from a public or private land or acquiring rent or crops from a tenant using the land.

(b) "Remote", "undeveloped" and "underdeveloped area" means the areas as referred to in Schedule-3 of the Industrial Enterprises Act, 2049(1992).

(c) "Special industry" means a production-oriented industry as classified in Section 3 of the industrial Enterprises Act, 2049 (1992) except an industry producing cigarette, Bidi, Sigar, tobacco, Khaini, other productions of the same nature involving tobacco as the principal raw materials, liquors, beer and products of similar kind.