KATHMANDU, Aug 20: Former Rastriya Prajatantra Party leader Rabindra Mishra has expressed dissatisfaction with Finance Minister Swarnim Wagle, questioning why rental income has not been included under the income tax exemption.
Although this year’s budget states that income up to Rs 1 million will be exempt from tax, Mishra wrote on social media that he was told rental income was not eligible for the exemption when he went to pay tax on his rental income.
Mishra said many people like him rely solely on rental income and have no other source of income. He questioned why such people should be denied the tax exemption.
‘Not the tenants but house owners should pay House Rental Tax’
“This is too much! Why is ‘rental income’ not covered by the income tax exemption, Finance Minister Swarnim Wagle?” he wrote. “This year’s budget stated that income up to Rs 1 million would be exempt from tax. But when I went to pay rental tax yesterday, I was told that rental income is not eligible for the tax exemption. There are many people like me whose only source of income is rent and who have no other income. So why should they not receive the tax exemption?”
He said the issue was particularly problematic because the budget says one thing on an important matter while local authorities interpret their powers differently.
“This has happened in previous years as well. But this year I decided to write about it,” he said.
Mishra also urged the government to make the necessary amendments to resolve the issue.
“This is too much, Finance Minister. Whatever needs to be amended and however it needs to be corrected, please fix it. Otherwise, it appears that many honest taxpayers will be seriously affected,” he wrote.
