Finance & Tax

EPF (Sanchaya Kosh) & CIT (Lagani Kosh) Calculator

कर्मचारी सञ्चय कोष तथा नागरिक लगानी कोष क्याल्कुलेटर

Estimate retirement corpus, employer matching, compound interest and Section 63 annual income tax savings from EPF and CIT in Nepal.

Estimate your total retirement corpus, employer matching contributions, compound interest, and Section 63 annual income tax savings through EPF (Sanchaya Kosh) and CIT (Lagani Kosh) in Nepal.

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Projected Total Retirement Corpus—

Monthly EPF Contribution (Employee 10% + Employer 10%): —
Monthly CIT Contribution: —
Total Employee Own Contribution (Principal): —
Total Employer Contribution (Free Money): —
Total Compound Interest Earned: —
Annual Income Tax Saved (Sec 63 Rebate): —
Estimated Monthly Post-Retirement Income (at 6% p.a.): —

Milestone Growth Schedule

Year	Basic Salary (Rs)	Yearly Savings (Rs)	Annual Tax Saved (Rs)	Total Accumulated Balance (Rs)

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About EPF (Sanchaya Kosh) & CIT (Lagani Kosh) Pension Calculator

The Employees' Provident Fund (Karmachari Sanchaya Kosh - KSK / EPF) and Citizen Investment Trust (Nagarik Lagani Kosh - CIT) are Nepal's two premier statutory retirement and investment institutions. This calculator projects your accumulated retirement wealth, employer matching contributions, annual compound interest, and significant income tax savings under Section 63 of the Nepal Income Tax Act 2058.

How EPF Works in Nepal

Under the Labour Act 2074 and EPF Act, formal employees contribute 10% of their basic salary every month, and the employer contributes an equal 10% match, creating a total monthly deposit of 20%. In addition to annual compound interest (typically 6.0% to 7.5%), EPF regularly distributes profit-sharing dividends and provides subsidized housing loans and medical insurance benefits.

Citizen Investment Trust (CIT) Benefits

Employees and self-employed individuals can voluntarily allocate additional monthly savings to CIT schemes (such as the Karmachari Bachat Briddhi Yojana). CIT balances compound annually and enjoy government guarantees.

Income Tax Exemption under Section 63

Contributions to approved retirement funds (EPF, CIT, and Social Security Fund SSF) reduce your taxable income. Under the Income Tax Act, you can deduct the lowest of:

Actual total contribution deposited in that fiscal year, OR
One-third (33.33%) of your total assessable gross annual income, OR
The statutory annual ceiling of Rs 3,00,000.

For an individual in the 20% or 30% tax slab, maxing out this deduction yields direct cash savings of Rs 60,000 to Rs 90,000 every year in reduced tax liabilities.

Frequently asked questions

How much interest does EPF pay in Nepal?

EPF historically pays between 6.0% and 7.5% annual compound interest, credited at the end of each fiscal year (Ashadh end). In profitable years, an additional profit-sharing bonus dividend is added to the balance.

Can I contribute to both EPF and CIT at the same time?

Yes. Many permanent and corporate employees maintain an active EPF account through their employer and contribute an additional monthly amount to CIT (such as 80-month savings or pension scheme) to maximize tax deductions and long-term security.

What is the maximum tax deduction allowed for EPF and CIT combined?

The maximum tax deduction across all approved retirement funds (EPF + CIT + SSF) is Rs 3,00,000 per fiscal year or one-third of your assessable income, whichever is lower.

Can I take a loan against my EPF or CIT balance?

Yes. EPF and CIT permit account holders to borrow up to 80% to 90% of their accumulated principal plus interest at favorable interest rates for personal, housing, or educational needs.

Are EPF withdrawals taxed upon retirement?

Retirement corpus accumulated in approved funds benefits from favorable capital gains treatment. Generally, up to Rs 5,00,000 is tax-exempt, and the remainder attracts a concessional 5% final withholding tax upon withdrawal.