CIT in Nepal: Retirement Savings, Tax Rules and What Changed in 2026
CIT in Nepal ensures that the salaried individuals contribute their small savings from every month’s salary in order to accumulate the retirement amount steadily. The CIT Nepal collects contributions from individuals and then invests them on behalf of its beneficiaries. According to The Finance Act 2082, the eligible retirement schemes for deduction have been revised. Private schemes had to affiliate themselves to CIT or other institutions by July 15, 2026. This web page will elaborate on the CIT process, their schemes, and who can join. The tax limit and withdrawal guidelines are also available on this page.
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Now that change affects the way companies manage payroll, and employees plan their savings. This page provides an easy-to-understand introduction to CIT Nepal and updates on the latest government information. You’ll get an understanding of the retirement fund, how the deductions are determined, and the types of documents that are important. We also illustrate ways for HR teams to ensure accurate records of contributions, such as those using the HRM toolHajir. Tax limits and deadlines may change frequently, so check with CIT and/or the Inland Revenue Department before making any decisions.
What is CIT and What does it do?
The Citizen Investment Trust (CIT) was established under the Citizen Investment Fund Act, 2047, to mobilize savings. It offers retirement schemes, unit funds, and pension products for individuals and organizations.
CIT reported a net profit of over Rs. 1.25 billion at its 31st Annual General Meeting (AGM) in January 2026. Members approved a 5 per cent bonus share and an 8 per cent cash dividend. CIT also collected approximately Rs. 266.65 billion through its savings programmes. These figures highlight the significant amount of money Nepali workers have invested in the institution.
Main CIT Retirement and Pension Schemes
CIT’s most popular product is the Employee Savings Growth Retirement Scheme. This voluntary scheme follows a defined-contribution, fully funded, and individual account-based model. It deducts a fixed amount from the employee’s monthly salary. The employer then deposits the contribution through designated collection centers, such as commercial bank branches.
CIT also offers the Citizen Pension Scheme. Employees, self-employed individuals, and non-resident Nepalis can join the scheme. Members may receive a pension after reaching 60 years of age and completing 15 years of service. However, eligibility requirements and other terms may vary. Check the latest details with CIT before enrolling.
Latest Government Updates on CIT
Fewer Funds Now Qualify for Deduction
Finance Act, 2082 restricted the number of the bodies approved as retirement funds to four. These are the Employees Provident Fund, CIT,Social Security Fund and the Pension Fund. The deduction no longer applies to other corporate-managed funds.
Private Funds needed to be in by Mid-July 2026
The Inland Revenue Department had directed the approved private funds to get affiliated with CIT or any other organization by the end of Ashad 2083. Siddhartha Bank, for instance, shifted retirement and gratuity accounts of some 2,000 workers to CIT. Other funds went on to send urgent transfer notices to the members.
The ceiling amount for deductions seems to be the same
The retirement deduction is still said to be the lowest of three amounts for FY 2083/84. These are the real contributions of Rs 5 lakhs or one-third of the assessable income. The ceiling is the sum of the contributions that are made to CIT, EPF andSSF. There are online calculators that still offer the same Rs 3 lakh figure, so make sure to check out before using it.
New Fiscal Year and Return Timing
FY 2083/84 began on 17 July 2026. The income year ending Ashad 2083 will close at the end of Ashoj 2083 (mid-October 2026). This can be extended for a period of up to three months by written application to the Inland Revenue Department.
How the CIT Tax Deduction Work
Any payments made into an approved retirement fund are deductible from your taxable income. Under the law, you are entitled to the contribution (up to the limit).
Consider a worker whose income is Rs 21 lakhs is an employee. The remaining one third of this income is Rs 7 lakh which is above the limit of Rs 5 lakh. Whereas, if the total sum contributed to retirement is Rs 4 lakh, then the entire Rs 4 lakh is allowed as deductible contribution. Never double count contributions from the same contributor within the same funds.
How to Open and Withdraw from a CIT Account
The majority of workers have their employment arranged by the employer. Self-employed people generally can apply by themselves. The documents usually entailed are a citizenship certificate, photos, PAN details, bank details, and nominee details.
When members are retiring or resigning, they typically submit the following:
- CIT identity card
- The retirement letter or resignation letter must be written to CIT
- Citizenship certificate copy
- Fund payment form
The tax rates are generally low on payouts from approved funds, although this varies according to the amount and the fund. Please consult the latest treatment before withdrawing
Managing CIT Contributions Through HR Software
Retirement deductions, record and deposit are made each month. Errors add up rapidly. These can create actual conflicts later when the wrong basic salary or missed month after unpaid leave, or the wrong nominee, occurs.
Hajir HRM is acloud HR solution, which combines attendance, leave, payroll and employee records. Deductions will reflect actual working days and up to date employee information with connected data. HR teams can also maintain clean records that can be presented for audits and annual returns. The site is available at hajirhr.com.
The Employer and SSF/CIT for FY 2083/84
Working people now have a true option when structuring their retirement contributions. A follow-up page could be a comparison of contribution rates, tax effects, workload of the HR team, and compliance burdens.
Frequently Asked Questions (FAQ)
CIT is a Citizen Investment Trust. It is a government-related institution in Nepal that provides retirement funds and pension schemes and unit products.
The ceiling remains at the same level, said reports. It continues to be the lowest of its actual contribution of Rs 5 lakh or one-third of the assessable income. Check with the Inland Revenue Department.
The Finance Act, 2082, reduced the number of approved funds to EPF, CIT, SSF and the Pension Fund. If a private was to join he or she was required to affiliate by mid-July 2026.
Both are known retirement funds and the limit for deduction combines. Inquire your HR about contribution methods at your employer.
Yes, CIT's Citizen Pension Scheme notice includes self-employed. Please check with CIT for eligibility and enrollment requirements.
Ensure salary information, leave and nominee information is up to date. Ensure payroll software is used which allows attendance to be correlated with deductions and monthly attendance reconciled with CIT statements.
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