CIT Tax Saving and Growth Calculator for Nepal
Deposits into the Citizen Investment Trust (CIT) reduce the income you pay tax on. Enter your salary and a monthly deposit to see your tax with and without CIT, the real cost of the deposit after the tax saving, and a projection of what it could become.
How CIT reduces your tax
Contributions to a provident fund (EPF), the Social Security Fund (SSF) and CIT share one retirement deduction. The deduction is the lowest of three amounts: what you actually contribute, NPR 5,00,000, or one-third of your assessable income. This calculator subtracts it before applying the FY 2083/84 income tax slabs.
How much CIT is worth depositing?
The calculator works out how much of the limit your other retirement fund already uses and tells you how much CIT still lowers your tax. Anything above that limit is saving, but it doesn’t reduce tax.
Example
If you are in the 10% slab, each NPR 10,000 you deposit saves about NPR 1,000 in tax, so the deposit really costs NPR 9,000. In the 20% slab it costs NPR 8,000. The higher your slab, the more a deposit saves.
Growth projection
The projection compounds your monthly deposit at the yearly return you choose. It is a what-if, not a promise, because CIT returns change from year to year and depend on the scheme.
Notes
- This is an estimate. Your employer’s payroll and the Inland Revenue Department decide your final tax.
- Check the Citizen Investment Trust for current returns, schemes and withdrawal rules.