Nepal TDS calculator
TDS (Tax Deducted at Source, अग्रिम कर कट्टी) is tax the payer withholds from certain payments under the Income Tax Act, 2058, deposits with the Inland Revenue Department, and pays the balance to the payee, with the rate set by the nature of the payment.
Pick the type of payment, rent, service fee, contract, commission, dividend, interest and more, and see the tax to withhold and the net amount to pay. Rates from the Income Tax Act, 2058.
Your payment
The full amount payable before withholding.
TDS rate10%
10% on rent of land or building paid by a resident person carrying on a business. Rent paid between natural persons is collected by the local level, not via TDS.
TDS to withhold
Rs 10,000
deducted at 10%
Net to payee
Rs 90,000
| Gross payment | Rs 1,00,000 |
| TDS withheld at 10% | − Rs 10,000 |
| Net paid to payee | Rs 90,000 |
The payer deposits the TDS with the IRD and pays the net to the payee. This is an advance tax adjustable against the payee's final tax liability. Rates change with each Finance Act and several categories carry conditions — confirm your exact rate with the IRD. This is not an official assessment.
How TDS works in Nepal
The payer is responsible for deducting the right tax, depositing it with the IRD, and issuing the payee a TDS certificate they can claim against their own tax.
Rate by payment type
There is no single TDS rate, it depends on what the payment is for. Rent, services, contracts and commission each have their own rate.
Payer withholds & deposits
The payer pays the net amount to the payee and deposits the withheld TDS with the Inland Revenue Department.
Advance vs final
Most TDS is an advance credited against the payee's final tax. Some, like dividends and deposit interest, are final withholding.
TDS in Nepal, answered
What is TDS in Nepal?+
TDS (Tax Deducted at Source, अग्रिम कर कट्टी) is tax the payer withholds from certain payments under the Income Tax Act, 2058, deposits with the Inland Revenue Department, and pays the balance to the payee. The rate depends on the nature of the payment.
What is the TDS rate on house rent in Nepal?+
TDS on rent of land or buildings paid by a business or organisation is 10%. Rent paid between natural persons is collected by the local level rather than through TDS.
What is the TDS rate on service fees in Nepal?+
A service or consultancy fee paid to a resident not registered for VAT is generally subject to 15% TDS, while a service fee paid to a VAT-registered service provider is 1.5%. A payment under a contract or agreement over Rs 50,000 is 1.5%.
Is TDS on dividends and bank interest final in Nepal?+
Yes. TDS of 5% on dividends from a resident company and 5% on bank/finance deposit interest paid to a natural person are final withholding taxes, the recipient owes no further tax on that income.
Is TDS an extra tax?+
Usually no. For most payments TDS is an advance tax, credited against the payee's final income-tax liability. Only 'final withholding' categories (such as dividends, deposit interest to individuals and windfall gains) settle the tax in full.
Sources & data note
TDS rates are set by the Income Tax Act, 2058 and revised by each year's Finance Act; several categories carry conditions (payee VAT-registration, residency, treaties, thresholds). The rates shown are the common categories for FY 2082/83–2083/84. This is an estimate for guidance, not an official IRD assessment, confirm your exact rate with the IRD or a tax advisor.