Core rule: Finance Act 2083 adds Schedule 1, section 1(16b). A resident natural person paying tuition to a resident person for a descendant's education can deduct the lower of 25% of qualifying annual tuition and NPR 25,000.
Example: a school bill contains NPR 80,000 tuition and NPR 30,000 for meals and transport. Eligible tuition is NPR 80,000, giving a deduction of NPR 20,000. Do not apply 25% to the entire NPR 110,000 bill.
If eligible annual tuition is NPR 160,000, 25% is NPR 40,000, but the deduction is capped at NPR 25,000. This ceiling is not automatically multiplied by the number of children.
Retain itemised invoices, payment evidence and the relationship details. This is an income deduction, not a direct NPR 25,000 reduction of tax.