Free tool
TDS rate calculator
Pick who is paying, what the payment is for, and who is being paid. You get the TDS rate for FY 2083/84, the amount to deduct, the section it comes from, and whether the TDS is final.
Common payments — tap one to start
If the bill is Rs. 100,000 + 13,000 VAT, enter 100,000.
Recipient is registered for VAT?
Or is a Nepali-registered company or firm dealing in VAT-exempt goods or services.
Deduct
15%
Enter the bill amount to see the figures.
Income Tax Act 2058, section 88(1)
Worth knowing
This is where the ten-times error happens
1.5% and 15% look similar and differ by ten times the tax. The only thing separating them is whether the recipient is VAT-registered.
Why this rate
Service fee, commission or sales bonus earned in Nepal, where the recipient is not VAT-registered.
Deposit by the 25th of the next Nepali month and file the e-TDS return for that month.
Before you deduct
6 things · about 2 minutes
Six things that quietly cost businesses money every month.
None of these are complicated. All of them are common, and each one becomes expensive at exactly the moment nobody remembers the transaction.
Mostly no. The rate depends on what the payment is for and who receives it. Who pays only decides whether TDS applies at all — an individual paying for something personal does not deduct, under section 88(4)(ka). An NGO or INGO deducts exactly like a company, even though its own income is exempt.
If the service provider is VAT-registered, deduct 1.5% under section 88(1)(4). If they are not VAT-registered, deduct 15% under section 88(1). Check the PAN or VAT certificate before you decide.
No. Deduct TDS on the bill value only. If the bill is Rs. 100,000 plus Rs. 13,000 VAT, deduct on Rs. 100,000.
For some payments — dividend, house rent to an individual, windfall gain, retirement payment, payments to non-residents — the TDS you deduct is the whole tax. The receiver does not add that income to their return and pays nothing more on it. Section 92.
By the 25th of the next Nepali month, along with the e-TDS return for that month. Late deposit attracts interest and a fee.
A single contract payment of Rs. 50,000 or less is outside section 89(1). But payments to the same party under the same contract are added together — splitting the bill does not avoid TDS.
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Read the full TDS guide→Rates follow the Inland Revenue Department schedule of withholding under sections 87, 88, 88Ka, 89 and 95Ka of the Income Tax Act 2058 for FY 2083/84. Some rates depend on facts this tool cannot see — residence status, tax treaty relief, an exemption certificate, the wording of the contract. Use it for the common cases. Where the amount is large, get the position checked.