6.4 House Rent Tax

The concept: the tax on rental income from house property — the property's EARNINGS, not its holding. Nepal's treatment: rent from property is income from investment under the Income Tax Act 2058 (Unit 4.5) — declared in the return, typically collected through withholding at source on rent payments. The older era knew a separate house-rent levy; the modern code absorbs rent into the income tax. The compliance point: rent must be declared by owners and withheld by payers — the recurring audit theme. The distinct pair (do not merge): house and land tax = the owner's annual holding levy to the LOCAL level; house rent tax = the owner's INCOME tax on rent to the FEDERAL system — two different levies, two different tiers, one property.