Nabil Bank Limited Retirement Fund (NBLRF) with the approval of His Majesty's Government of Nepal, Department of Inland Revenue and Nepal Rastra Bank, has been managing and operating Retirement Fund of its own employees and the employees of Nabil bank's corporate customers.
The Fund is an independent trust in accordance with the provision of Income Tax Act 2058 of Nepal, which is managed by a separate board and management team.
What is Retirement Fund Contribution?
Contribution made by an employee to his/her Provident Fund, Gratuity or other Fund of similar nature payable at the time of retirement is known as Retirement Fund Contribution. The Contribution up to one third of total assessable income or NPR 300,000.00, whichever is lower is deductible from assessable income.
Who can open account with NBLRF?
Individual employee of corporate customer of Nabil Bank Limited can open an account and deposit their retirement contribution with the NBLRF. Prior to this the corporate customers have to enter into an agreement with the Fund. The depositors is called beneficiary of the Fund.
Benefits to Beneficiary
According to current provision of Income Tax Act 2058, total payment of retirement fund up to NPR 500,000.00 or fifty percent of total deposit, whichever is higher is tax free. Remaining balance is taxable @5.00%. While in case of the deposit in other unapproved fund will attract tax @15% in the total amount.
Beneficiary may borrow up to ninety percent of their total deposit. Such borrowing will attract an interest rate of one percent higher than the rate for deposit.
NBLRF is allowed to invest its deposit in Commercial banks and HMG Bonds only.
Payment of Retirement Contribution
Beneficiary shall not have any right to claim the payment of the retirement contribution as long as s/he is continuing the service. Beneficiary who is separated from the service may claim for payment of the balance retirement contribution with evidence of separation of service. In the event of death of the beneficiary, his/her nominee may lodge the claim for payment of balance amount in the account of the deceased. Where no nominee is appointed or the nominee has also died, first living relative of the deceased beneficiary may lodge the claim.