(1) For the purpose of implementing an order of penalty, the salary and allowance of an officer
shall be deducted as follows:
(a) The salary and allowance for the day of his/her absence, except when satisfactory explanations are
given to the commanding officer and those explanations are approved by the Government of
Nepal,
(b) The salary and allowances for the period held in custody or on suspension from duty as per the order
issued by any Court Martial or other court or any authority who has an authority to issue an order for
departmental action,
(c) The amount of the salary decided to be paid to any person whose salary is illegally frozen or who is
refused to be paid,
(d) The amount required to reimburse the expenses resulting from an order issued by a Court Martial or an
authority who has the power to issue an order for departmental action,
(e) All such salaries and/or allowances subjected to confiscations or freezing pursuant to an order issued
by a Court Martial or the Authority who has the power to issue an order for departmental action of
confiscation or freezing,
(f) The amount required to pay the fine imposed by a Court-martial or any other court pursuant to Section
66,
(g) The amount required to reimburse the property stolen or causing any loss to the property of the Government
of Nepal or the Nepal Army which is proved by the investigations conducted pursuant to the Rules which
were stolen or damaged due to negligence or mistake of the officer,
(h) All such salaries and allowances forfeited through an order of the Government of Nepal after the Court of
Inquiry formed by the Chief of Army Staff has held that the concerned officer had cooperated with the
enemy, or served the enemy while in the custody of the enemy or helped the enemy as per the orders of the
enemy or otherwise, or that he/she had been captured by the enemy for being intentionally negligent while
on duty and held under the custody of the enemy, or that he/she had failed to return to his/her side even
when he/she could do so after being captured by the enemy,
(i) The amount to be paid as per the order of the  Government of Nepal by the concerned officer for the
maintenance of one’s wife and/or children, or the amount being paid by the Government as maintenance
for such children.
(2) Subject to the provisions of Sub-section (1), the salary and allowances of persons other than officers shall be deducted as follows:
(a) The salary and allowances payable for each day of absence, desertion, detention as a prisoner of war or
while being held in custody by the Court Martial, other courts or an authority who may order for a
departmental action or absence resulting from battlefield penalty ordered by a Court Martial or an  authority who may order for a departmental action and the salary and allowances payable for each day of absence resulting from detention prior to imprisonment after being convicted of an offence by a Court Martial or other court,
(b) The salary and allowances payable for the period of detention or suspension from duty on the charge of
committing an offence for which the person concerned is subsequently convicted by any Court Martial or
other court or an authority who has power to issue an order for departmental action,
(c) The salary and allowances payable for each day of hospitalization after falling ill for which the doctor
engaged in the treatment issues a certificate to the effect that the person concerned has fallen ill because
of action taken by him/her which is deemed to be an offence under this Act,
(d) The amount of salary and allowances payable for each day of hospitalization as determined by the officer
prescribed or authorized by the Government of Nepal after falling ill for which the doctor engaged in the
treatment issues a certificate to the effect that the person concerned has fallen ill because of his/her
misconduct or negligence,
(e) All such salaries and allowances as ordered for forfeiture or freezing by a Court Martial or an
authority who has power to issue an order for departmental action,
(f) The salary and allowances payable for each day from the date of dismissal from service in consideration of
the conduct of the person concerned to the date of his/her release from the enemy, in case he/she is held
as a prisoner of war or in custody by the enemy,
(g) The amount needed to compensate as determined by his/her commanding officer for the loss or damage or
destruction or unnecessary expenses caused by him/her to any building or asset of the Government of Nepal,
(h) The amount required to pay the fine imposed by a Court Martial or other Court or any authority who
exercises power as referred to in Sections 66, 105 or 107.
(i) The amount to be paid as per the order of the Government of Nepal by the concerned person for the
maintenance of his wife and the children, or the amount being paid by the Government as maintenance
for such children.