Section 12 : Donation, gift given to organisations entitled to tax exemption

1) In computing his taxable income in any income year, any person may make a claim to subtract the amount of donation or gift given to an organisation entitled to tax exemption approved by the Department for the purpose of this Section.

2) Notwithstanding anything contained in Sub-section (1), the expenditure deductible in any income year shall not be one hundred thousand rupees or five percent of the adjusted taxable income of such person for that year, whichever is the lesser.

3) Notwithstanding anything contained in Sub-sections (1) and (2), in any special situation, the Government of Nepal may, by notification in the Nepal Gazette, so specify that any amount spent or donated by any person for any work specified in that notification may be deducted fully or partly for expenditure, in determining the income of that person.