Pun passed away in his ancestral house in Myagdi.
Pun was awarded the highest military honor for demonstrating valiance during the World War II.
He had arrived in Mygadi from Britain a month ago to participate in a family worship, according to Dilmaya Pun, a relative.
Pun is survived by two sons and eight daughters.
Railway service in Britain to be named after VC Tul Bahadur Pun