Capital Gains Tax Calculator

Under ITA §2(d), only land/building of a natural person that is not used in business and not a depreciable asset can be a Non-Business Chargeable Asset. The capital-gains tax in ITA §95क applies to NBCA only.

What is NOT an NBCA (so no CGT under this regime):

• A personal house meeting both (i) ≥10 yrs continuous ownership and (ii) ≥10 yrs residence — see Directive §3.1 + Examples 4, 5
• Land/building of a natural person disposed of for < Rs. 10 lakh (threshold lowered from Rs. 30 lakh by Aarthik Ain 2075)
• Property transferred within 3 generations by any mode except sale (अंशबण्डा, बकसपत्र, अपुताली) — §2(d)(5)
• Interest in a retirement fund

"Personal House" defined (§3.1 Spaštīkaraṇa): the building plus land equal to the building footprint or 1 ropani (5,476 sq.ft / 508.74 sq.m), whichever is less. Land beyond that limit remains taxable even if the building qualifies — see Examples 6 (Ramesh Sharma, 12 आना) and 7 (Tilak Basnet, 3 ropani).

गैर व्यावसायिक करयोग्य सम्पत्ति: प्राकृतिक व्यक्तिको जग्गा/घरजग्गा। निजी भवन = भवन + भवनले ओगटेको क्षेत्रफल वा १ रोपनी मध्ये जुन घटी हुन्छ।

ITA §40 recognizes disposal by sale, gift, government acquisition, mortgage seizure, partition, or death. The tax consequence depends entirely on the mode:

• Sale (राजीनामा) — arm's length; sale price = consideration. Standard CGT applies.
• Installment sale §42 — even when paid over time, the full sale price is recognized as income on the agreement date. Interest is separately taxed as investment income. Directive Example 11, Page 25.
• 3-Generation Free Transfer §45(1)(c) — partition, अंशबण्डा, बकसपत्र, अपुताली between parent/grandparent ↔ child/grandchild. No CGT for transferor. Recipient inherits original cost. Directive §3.2, §4.3, Examples 8ख, 9.
• Spouse Transfer §43 — between spouses or ex-spouses (post-divorce). No deemed disposal; recipient inherits cost basis. Directive §4.4, Examples 10, 10क.
• Death §44 — if heir within 3 generations, cost = deceased's original; if outside 3-gen / under will / अपुताली to non-3-gen → deemed disposed at market value at death. Directive §4.6, Examples 9क, 11ग.
• Associated party §45(1)(a) — to a related person at non-market price → use HIGHER of cost or market value. Directive §4.8.
• Government Acquisition §46 — compulsory acquisition for road, hydro, transmission. If a similar replacement is bought within 1 year → tax deferred; otherwise full gain taxable. Directive §4.10.
• Mortgage Auction §41 — bank seizes defaulted property → CGT on registration value. Directive §4.12.

निःसर्ग = बिक्री, दान, सरकारी अधिग्रहण, ऋण असुली, अंश दिने, वा मृत्यु — सबै ऐनको दफा ४० अन्तर्गत।

Under ITA §38, the "cost" of an asset is what you can deduct from the sale proceeds. The rule changes with how you got the property:

• Purchase — actual purchase price + registration fees + legal fees + commissions paid at acquisition (§38(1)(क)).
• 3-Generation Transfer §45(1)(c) — your cost = the transferor's original cost (NOT market value at gift). If the transferor acquired before Chaitra 19, 2058, use that day's fair market value. Directive Example 9, Page 20: रामहरि भण्डारी bought a building for Rs. 1 Cr in 2058, gifted to son कृष्णहरि. When कृष्णहरि later sold for Rs. 7 Cr, his cost basis was the Chaitra 19, 2058 market value (Rs. 2.5 Cr) → gain Rs. 4.5 Cr taxable.
• Spouse / Ex-Spouse §43 — your cost = transferring spouse's original cost. No "step-up" at transfer.
• Death within 3-gen §44 — heir's cost = deceased's original cost. Example 9क, Page 20–21: हरिशरण शर्मा had a house acquired in 2057 (pre-2058 → use Chaitra 19, 2058 market = Rs. 1 Cr). After his death, transferred to wife सरला — she cannot claim Rs. 2.5 Cr market value at death; her cost is Rs. 1 Cr.
• Death outside 3-gen / Will / Apuali §44 — deemed disposed at market value at death; deceased's estate may owe CGT.

Chaitra 19, 2058 (Apr 2, 2002) = effective date of ITA 2058. For any property acquired earlier, the cost basis for CGT is the fair market value as of that date (§45(1)).

लागत आधार: खरिद मूल्य (खरिद भए), वा हस्तान्तरण गर्नेको लागत (अंश/बकसपत्र भए), वा चैत्र १९, २०५८ को बजार मूल्य (सो भन्दा अघिको भए)।

Directive §3.3(8): When a building is constructed after the land is acquired, the building has its own ownership clock starting from the construction date. Land and building can therefore fall in different tax tiers.

Directive §3.3(9) + Example 8 (Page 12 — Dipak Thapa, Goushala): Dipak bought 8 आना land + single-storey building in 2060 (lived in it). He added a second floor in 2065. When he sold the building in 2071, the first floor was >10 years (qualifies for personal-house exemption) but the second floor was only ~6 years old — that floor's proportional sale value (Rs. 20 lakh) plus 2 आना land allocated to it (Rs. 16 lakh) = Rs. 36 lakh became NBCA and taxable.

Construction cost is deductible per §38(1)(ख) as part of cost basis. Renovation, extension, repair, boundary wall — also deductible as improvements (see §05 below).

जग्गा प्राप्त गरेपछि भवन/तला निर्माण भएकोमा छुट्टै स्वामित्व अवधि गणना हुन्छ — दिपक थापाको उदाहरण ८।

Under ITA §38(1)(ख), the cost of "improvement" to the property is added to your cost basis and effectively reduces taxable gain. Qualifying expenses include:

• Boundary walls (पर्खाल), gates, retaining structures
• Major renovations and extensions (तला थप — but note separate clock per §04 above)
• Permanent structural improvements (plumbing, electrical, foundation work)
• Approved land development costs (drainage, levelling, access road)

NOT deductible: routine maintenance, painting, minor repairs that don't add to capital value. Personal living expenses are never deductible.

Documentation is essential. The Land Revenue Office routinely rejects improvement claims without supporting bills/contracts. Per §38(2), every claimed cost must be substantiated.

सुधार लागत = पर्खाल, थप निर्माण, स्थायी संरचनात्मक सुधार आदि — दफा ३८(१)(ख) अन्तर्गत कट्टी पाइने।

Sale price = the actual consideration received. If you sell to a non-related party at arm's length, the registered रजिष्ट्रेसन price is taken at face value. But:

• Below market price to a related person (§45(1)(a)): the HIGHER of (cost) or (market value) is deemed the sale price. You cannot suppress the gain by undervaluing.
• Below the minimum government valuation (न्यूनतम मूल्याङ्कन): the Land Revenue Office applies its valuation; the difference may trigger reassessment. The buyer (मतियार) can also be held jointly liable for under-declaration — Example 31, Page 85: Kishor Thakur, Chabahil.
• Death / Gift outside 3-gen (§44, §45): use market value at the time of transfer; no actual cash consideration is needed.
• Compensation under §46: govt-paid compensation is the "sale price". If you reinvest in a similar property within 1 year, only the excess (compensation − replacement cost) is taxable now.

Selling expenses deductible per §38(1)(ग): real-estate agent commission, advertising, legal fees, registration fees on disposal, surveyor fees. Keep receipts.

बिक्री बापतका खर्च: कमिशन, विज्ञापन, कानुनी शुल्क, दर्ता शुल्क — ऐनको दफा ३८(१)(ग) अन्तर्गत कट्टी।

Since ownership is ≥ 10 years, full exemption (0% CGT) is possible if all conditions are met under ITA §2(d)(1) (which excludes a qualifying personal house from NBCA entirely):

• (क) Continuous ownership ≥ 10 years — must be unbroken (अविच्छिन्न).
• (ख) Residence ≥ 10 years — total days lived in the house ≥ 3,650. This can be intermittent (पटक-पटक): you don't need to live there continuously, but every day abroad/elsewhere is subtracted. Example 8क (Page 13 — Prem Prasad Acharya): he lived 9 years 245 days but spent 120 days abroad → residency < 10 years → exemption FAILS even though he was the legal owner the whole time.
• "Personal House" area limit — building + land equal to footprint OR 1 ropani (508.74 sq.m / 5,476 sq.ft), whichever is less. Excess land is taxable. Example 6 (Page 11 — Ramesh Sharma, Lazimpat): 12 आना land, 4 आना footprint → only (4 आना building + 4 आना matching land) = 8 आना qualify. Remaining 4 आना land sold for ~Rs. 66,66,666 became taxable NBCA. Example 7 (Page 12 — Tilak Basnet, Balaju): 3 ropani land with house occupying 2 ropani → 1 ropani cap applies → 2 ropani excess land remains fully taxable.
• Personal use only — never rented or used commercially. Example 3 (Page 9 — Dinesh Sharma, Thamel): built a house in 2050 then leased to a restaurant company — even after 15+ years, because it was commercial-use, it became NBCA, not personal house.
• No other house in Nepal — the taxpayer cannot own a second house anywhere in Nepal at the time of sale.

Partial exemption: if all conditions met BUT land exceeds the area cap, only the proportional excess-land gain is taxed. The calculator handles this — fill in the total area and footprint below.

१० वर्ष वा सोभन्दा बढी अविच्छिन्न स्वामित्व + १० वर्ष बसोबास + भवन र भवनले ओगटेको क्षेत्रफल वा १ रोपनी मध्ये घटी जग्गा + निजी प्रयोजन + अर्को घर नहुनु — सबै शर्त पूरा भएमा मात्र कर शुन्य।

Income Tax Act §2(d)(4): The Non-Business Chargeable Asset (NBCA) definition applies only to natural persons (प्राकृतिक व्यक्ति). For a Guthi, Trust, Company, Cooperative, School or other entity (निकाय), land/building is not NBCA — yet §95क(6) still requires the Land Revenue Office to collect 1.5% advance tax on the registration value at the time of transfer.

Directive Example 4क (Page 10): गुठी संस्थानले जनकपुर उपमहानगरमा १२ कट्ठा जग्गा रु. ६० लाखमा बिक्री गर्दा — यो NBCA होइन, तर रु. ६० लाख × १.५% = रु. ९०,००० अग्रिम कर रजिष्ट्रेशन बखत असुल हुनेछ।