House rent tax & TDS calculator
Work out the 10% rental income tax a landlord owes, or the 10% TDS a business tenant must withhold, from a simple monthly rent.
Switch between landlord and tenant, enter the monthly rent, and see the monthly and annual figures. An indicative tool, computed entirely in your browser.
Rent details
The monthly rent you receive for a house or land let out.
As an individual not carrying on a business, your house/land rental income is taxed at a flat 10% of the annual rent, this is a separate local-body rental income tax, not the personal income tax slabs.
Rental tax due (10%)
Rs 36,000
Per year, on Rs 3,60,000 annual rent
Monthly rent
Rs 30,000
Annual rent
Rs 3,60,000
Monthly tax
Rs 3,000
Net annual rent
Rs 3,24,000
Net rent in hand after the 10% rental tax is Rs 27,000/month or Rs 3,24,000/year. If a business tenant already withholds TDS on this rent, that TDS is credited against this tax, it is not paid on top.
An indicative estimate only, as of the current flat 10% rate applied to house/land rental income and to rent TDS under Nepal's tax rules. It assumes a simple monthly rent with no other deductions, exemptions or additional local charges. Confirm your exact obligation with the Inland Revenue Department or your tax adviser before relying on this figure.
One 10% rate, two different obligations
Landlords and business tenants both work with the same flat 10% rate on annual rent, but who owes it, and who pays it to the government, differs.
Annual rent
Monthly rent × 12. Both the landlord's rental tax and the tenant's TDS are calculated on this annual figure, not the monthly amount directly.
Landlord's rental tax
An individual landlord not in business owes a flat 10% local-body rental income tax on the annual rent they receive, separate from the personal income tax slabs.
Business tenant's TDS
A registered company or firm renting the space must withhold 10% TDS from the rent, deposit it with the government, and credit it against the landlord's tax.
House rent tax and TDS, answered
Are the landlord's rental tax and the tenant's TDS two separate charges?+
No. Both use the same 10% rate on the annual rent, but they are not additive. When a business tenant withholds TDS and deposits it with the Inland Revenue Department, that TDS is credited against the landlord's own rental income tax liability, not charged on top of it. The landlord simply receives their rent net of the TDS already withheld.
Who must withhold TDS on rent, and who doesn't?+
Only a "non-natural person" tenant, a registered company, firm, partnership or other business, is required to withhold TDS when paying rent. An individual renting a home or shop purely for personal use, with no business registration, does not withhold anything, the landlord is responsible for their own rental tax instead.
Why is the rate 10% for an individual landlord, not the income tax slabs?+
House and land rental income earned by an individual who is not otherwise carrying on a business is taxed as a separate, flat local-body rental income tax at 10% of the annual rent, rather than being added to the individual's other income and taxed at the progressive income tax slab rates.
What happens if my landlord doesn't want TDS withheld?+
If your business is a "non-natural person" tenant, withholding TDS on rent paid is a legal obligation, not optional, regardless of what the landlord prefers. You must still withhold the 10% TDS, deposit it with the Inland Revenue Department and issue the landlord a TDS certificate they can use as credit against their own tax.
Is this rate the same for commercial and residential rent?+
Yes, the 10% rate applies to rent from house or land generally, whether the space is used residentially or commercially, as long as the recipient (landlord) is an individual not otherwise in business. Business-to-business rent arrangements and other rental categories can carry different withholding treatment, confirm with the Inland Revenue Department if your situation is more complex.
Sources & data note
Based on the rent TDS provisions of the Income Tax Act 2058 and the house/land rental income tax provisions of the Local Government Operation Act. Figures are indicative, confirm your exact obligation with the Inland Revenue Department or your tax adviser before relying on this.