The full TDS rate card for Nepal: every rate that skims your money (FY 2083/84)
Every TDS rate in Nepal for FY 2083/84 in one table: interest, dividend, rent, commission, contract, capital gains, and what counts as final vs adjustable tax.
Every paisa of TDS is a small, silent transfer from your income to the IRD, made before you ever touch the money. Most people meet it on three lines, the salary slip, the FD statement, and the dividend warrant, and assume those are the only ones. They are a fraction of the list.
This is the whole list, in one place, for the fiscal year that begins this Shrawan. Not a deep dive on any single rate, but the reference card: what gets withheld, at what rate, and whether you ever see that money again.
A note on the fiscal year and these numbers
The rates below are for FY 2083/84, which begins Shrawan 1, 2083 (about 17 July 2026). The Finance Bill 2083 passed the House of Representatives in Asar 2083; as a money bill, that is the decisive step, with formal authentication and gazette publication following before the fiscal year starts. Treat these as the operative rates; a handful of figures below were cross-checked against the ICAN budget highlights and the PKF tax-rate publication, both professional sources.
For the month or so until then, FY 2082/83 rates still apply, which matters mainly for the items that changed: share and land CGT, and the slabs.
The master rate card
Grouped by what is being paid. Rates are the FY 2083/84 figures.
Investment income
| Payment | TDS rate | Final or adjustable |
|---|---|---|
| Bank/FD/savings interest to an individual | 6% | Final |
| Interest to a company | 15% | Adjustable |
| Dividend from a resident company | 5% | Final |
| Mutual fund distribution to an individual | 5% | Final |
| Investment-insurance gain | 5% | Final |
| Gain from an unapproved retirement fund | 5% | Final |
| Approved retirement fund / gratuity payout | 6% | Final |
The 6% on individual interest is the one people get wrong most; it rose from 5% under the Finance Act 2080 and many sites never updated. The mechanics of why it is final and what it does to your real return are in the FD interest tax post, and the dividend side in how NEPSE dividends are taxed.
Capital gains
| Asset (individual seller) | TDS rate FY 2083/84 | Was FY 2082/83 |
|---|---|---|
| Listed shares, held > 365 days | 7.5% | 5% |
| Listed shares, held ≤ 365 days | 10% | 7.5% |
| Unlisted shares | 10% | 10% |
| Land/building, owned ≥ 5 years | 7.5% | 5% |
| Land/building, owned < 5 years | 10% | 7.5% |
Listed-share gains for individuals are now treated as a final tax, withheld by the CDSC at settlement. Both share brackets and both land brackets rose 2.5 points this year. The share detail, including the WACC method, is in the capital gains on shares post; the property side, with worked Valley examples, in capital gains on property. A property sold for under Rs 10 lakh is not a chargeable asset, so no CGT applies.
Rent
| Payment | TDS rate | Note |
|---|---|---|
| House rent paid directly to an individual | No central TDS | 10% municipal rent tax applies instead |
| Rent paid by a company / to an entity | 10% | Adjustable |
| Vehicle/carriage hire to a VAT-registered party | 1.5% | — |
| Freight against a non-VAT invoice | 2.5% | — |
The house-rent split is the perennial confusion: an individual landlord pays the ward, not the IRD, and the rent never enters their income-tax slab. The full logic is in the house rent tax post.
Service, commission, and contract payments
| Payment | TDS rate | Final or adjustable |
|---|---|---|
| Service/consultancy fee, VAT-registered provider | 1.5% | Adjustable |
| Service fee, non-registered (PAN bill only) | 15% | Adjustable |
| Commission (general) | 15% | Adjustable |
| Insurance-agent commission | 20% (new) | Adjustable |
| Contract/agreement payment over Rs 50,000 | 1.5% | Adjustable |
| Ride-sharing driver platform payment | 1% (new) | Advance |
| Question-setting / answer evaluation | 15% | Final |
The insurance-agent 20% and the ride-share driver 1% are the new lines this year. If you do freelance or side-income work, the 1.5%-vs-15% fork on service fees is the one that decides your cash flow: issue a VAT invoice and you keep far more upfront.
Windfall, salary, and non-residents
| Payment | TDS rate | Final or adjustable |
|---|---|---|
| Windfall gain (lottery, prize) | 25% | Final |
| Salary/remuneration | Per income-tax slab | Adjustable |
| Contract payment to a non-resident | 5% | Final |
| Dividend to a non-resident | 5% | Final |
| Reinsurance premium to a non-resident | 1.5% | Final |
Windfall tax has a narrow exemption: awards up to Rs 5 lakh for contributions to literature, art, culture, sport, journalism, science, and public administration are spared, with tax only on the excess. The lottery and prize mechanics, including the Ncell crorepati example, are in the windfall tax post. Service or royalty payments to a non-resident are commonly cited at 15%, though confirm against the IRD circular if precision matters.
Salary: the FY 2083/84 slabs
Salary is not a flat TDS; your employer withholds against the annual slabs, divided over twelve months. For FY 2083/84 the schedule was restructured into a single set for everyone (the separate couple schedule was abolished):
| Annual taxable income | Rate |
|---|---|
| Up to Rs 10,00,000 | 1% |
| Rs 10,00,001 – 15,00,000 | 10% |
| Rs 15,00,001 – 25,00,000 | 20% |
| Rs 25,00,001 – 40,00,000 | 27% |
| Above Rs 40,00,000 | 29% (27% + 2% surcharge) |
One trap worth flagging: the first Rs 10 lakh is taxed at 1%, not zero. That 1% is the Social Security Tax, and headlines calling it a "tax-free" floor are loose. It is waived for SSF contributors and pensioners. The top rate falling from last year's 39% to 29% is the headline cut. The full before-and-after by salary level is in the 2083/84 slabs post, and how the line lands on your payslip in TDS on salary explained.
Final vs adjustable: the distinction that matters
This is the one concept worth keeping. Final withholding settles the tax on that income for good, so you cannot reclaim it and you do not file on it again: bank interest, dividends, windfall gains, and now individual share gains all sit here. Adjustable withholding is an advance, credited against your total liability when you file, and refundable if too much was taken: salary and service-fee TDS are the common cases.
The practical consequence is what you can get back. Over-deducted salary TDS is recoverable; the 6% skimmed off your FD interest is not, ever. The refund-claim post walks the Section 113 route and the two-year deadline for the adjustable kind.
Thresholds and exemptions worth knowing
A few payments escape TDS, or only trigger it above a line:
- Contract payments are withheld only once the cumulative payment under a contract exceeds Rs 50,000.
- House rent to an individual carries no central TDS at all (the 10% municipal tax stands in).
- Meeting or sitting allowance up to Rs 20,000 per meeting is a final withholding payment.
- A property sold for under Rs 10 lakh is not a chargeable asset, so no CGT.
- Micro-finance and rural cooperative deposit interest up to Rs 25,000 is exempt; note this exemption does not cover your ordinary commercial-bank FD.
- Interest between resident banks carries no TDS.
What you actually need to know
Three things:
- Memorise three numbers: 6% on your interest, 5% on dividends, and that both are final. They quietly reduce your investment income and you will never see them again.
- The rates that moved this year are CGT and the slabs, not TDS. Share and land gains rose to 7.5%/10%; the salary top rate fell to 29%. Most withholding rates held.
- Final vs adjustable decides what you can reclaim. Salary and service-fee TDS are recoverable; bank interest and dividend TDS are gone for good.
Keep this card handy at filing time rather than trusting a half-remembered rate. Spotted a deduction on a statement that does not match a line here, or a rate that has since changed? Email parjanya57@gmail.com.
This post is part of the Nepal Money Basics guide — the tax section.
Frequently asked questions
- What is TDS in Nepal?
- Tax Deducted at Source: the payer withholds a slice of certain payments and deposits it with the Inland Revenue Department on your behalf, before the money reaches you. Your salary, bank interest, dividends, rent, and many service payments all have a TDS line. Some of it is the final tax on that income, and some is just an advance you reconcile when you file.
- What is the TDS rate on FD and bank interest in Nepal?
- 6% for interest paid to an individual not in business, deducted at source and final. It rose from 5% under the Finance Act 2080 and stays at 6% for FY 2083/84. Interest paid to a company is withheld at 15% and is adjustable. Many older websites still quote 5% for individuals, which is out of date.
- What changed for FY 2083/84?
- Most TDS rates did not move. The big changes are elsewhere: the income-tax slabs were restructured (the top rate fell from 39% to 29% and the separate couple schedule was abolished), capital gains tax on listed shares rose to 7.5% and 10% for individuals, and land and building CGT rose to 7.5% and 10%. New TDS lines were added for insurance-agent commission (20%) and ride-sharing drivers (1%).
- What does 'final withholding' mean?
- It means the tax taken at source settles your liability on that income completely, so you never file or pay again on it. Dividends (5%), individual bank interest (6%), and windfall gains (25%) are final. Salary TDS and service-fee TDS are adjustable: they are advances credited against your total bill when you file, and any excess is refundable.
- Is there TDS on house rent in Nepal?
- Not central TDS when the rent is paid directly to an individual landlord. Instead the local municipality levies a 10% house-rent tax. When a company or withholding agent pays the rent, or the landlord is an entity, a 10% central TDS applies and is adjustable. This split confuses both tenants and landlords every year.
- How do I check the TDS deducted from my income?
- For salary, your employer reports it on Annexure 10, which you can verify on the IRD taxpayer portal. For investment income, the deduction shows on your bank or dividend statement. If adjustable TDS was over-deducted, you can claim it back; final withholding like bank interest and dividends cannot be refunded.