Section 59 : Banking business

1) In computing the income or loss made by any person carrying on a banking business from that business in any income year, it shall be separately computed as if the banking business were a business distinct from any other business carried on by that person.

¹1A) Amount up to five percent of the amount of loan due to be recovered kept in the risk-bearing fund by the person operating the banking business, and the amount managed for non-banking property shall be deducted as expenses, subject to the standards prescribed by the Nepal Rastra Bank.

¹1B) Amount up to five percent of the amount of loan due to be recovered kept in the risk-bearing fund by a cooperative organisation shall be deducted as expenses.

¹1C) If expenses are accounted from the profits where the risk-bearing fund is maintained pursuant to sub-sections (1A) and (1B), the same shall not be remitted, and if the amount held in such fund is capitalised or profit or dividend is distributed, its shall be included in the income in the year in which it is distributed.

²2) …………………

3) …………………

^{1 Inserted by the Financial Act, 2075.}

^{2 Removed by the Financial Act, 2075.}