Tax Deducted at Source (TDS) is an advance tax collection mechanism in Nepal. Here's everything businesses need to know about TDS compliance.
What is TDS?
TDS is tax deducted when making certain payments. The payer deducts tax at prescribed rates and deposits it to IRD on behalf of the payee. Common TDS scenarios: - Rent payments - Contractor/professional fees - Interest payments - Dividends - Commission
TDS Rates in Nepal (2026)
Current TDS rates for common transactions: - Rent: 10% on amounts above NPR 50,000/month - Contractor payments: 1.5% to registered, 2% to non-registered - Professional fees: 15% on payments above NPR 30,000 - Interest: 5-15% depending on type - Commission: 15%
Rates vary based on payee registration status and payment type. Always verify current rates with IRD.
When Must You Deduct TDS?
You must deduct TDS if you are: - A registered business or individual - Making payments above prescribed thresholds - To specified categories (rent, contractors, professionals)
Individuals and small businesses below turnover thresholds are generally exempt from deducting TDS.
TDS Calculation Example
Scenario: You pay NPR 100,000 rent to landlord
Calculation: - Rent amount: NPR 100,000 - TDS rate: 10% - TDS to deduct: NPR 10,000 - Net payment to landlord: NPR 90,000 - TDS to deposit to IRD: NPR 10,000
TDS Certificate
After deducting TDS, you must issue a TDS certificate to the payee showing: - Amount paid - TDS deducted - TDS certificate number - Deposit details
The payee uses this certificate when filing their income tax return to claim credit for tax already paid.
e-TDS Filing
TDS must be deposited and filed quarterly: - File e-TDS return online via IRD portal - Deadline: 25th of month following quarter end - Include deductee details, amounts, and TDS deducted
ERP accounting software can track TDS automatically on each payment, generate certificates, and prepare e-TDS returns.
Penalties for Non-Compliance
- Failure to deduct TDS: Interest and penalties
- Late deposit: Daily interest charges
- Late filing: NPR 5,000+ fines
How NitiERP Helps
- Automatically calculates TDS on payments based on vendor type and amount
- Tracks TDS deducted and deposited
- Generates TDS certificates
- Prepares e-TDS returns with all annexures
- Keeps you audit-ready
Contact us to automate your TDS compliance.
नेपालीमा
स्रोतमा कटौती गरिएको कर (TDS) नेपालमा अग्रिम कर सङ्कलन संयन्त्र हो। यहाँ व्यवसायले TDS अनुपालनको बारेमा जान्नुपर्ने सबै कुरा छ।
TDS के हो?
TDS केही भुक्तानी गर्दा कटौती गरिने कर हो। भुक्तानीकर्ताले निर्धारित दरमा कर कटौती गरी भुक्तानी प्राप्तकर्ताको तर्फबाट IRD मा जम्मा गर्छ। सामान्य TDS परिदृश्य: - भाडा भुक्तानी - ठेकेदार/व्यावसायिक शुल्क - ब्याज भुक्तानी - लाभांश - कमिसन
नेपालमा TDS दर (२०२६)
सामान्य कारोबारका लागि हालको TDS दर: - भाडा: NPR ५०,००० प्रति महिना भन्दा माथिको रकममा १०% - ठेकेदार भुक्तानी: दर्ता भएकामा १.५%, नदर्ता भएकामा २% - व्यावसायिक शुल्क: NPR ३०,००० भन्दा माथिको भुक्तानीमा १५% - ब्याज: प्रकार अनुसार ५-१५% - कमिसन: १५%
कहिले TDS कटौती गर्नुपर्छ?
तपाईंले TDS कटौती गर्नुपर्छ यदि तपाईं: - दर्ता व्यवसाय वा व्यक्ति हुनुहुन्छ - निर्धारित सीमाभन्दा माथि भुक्तानी गर्दै हुनुहुन्छ - निर्दिष्ट वर्ग (भाडा, ठेकेदार, व्यावसायिक) मा
TDS गणना उदाहरण
परिदृश्य: तपाईं घर मालिकलाई NPR १,००,००० भाडा तिर्नुहुन्छ
गणना: - भाडा रकम: NPR १,००,००० - TDS दर: १०% - कटौती गर्ने TDS: NPR १०,००० - मालिकलाई शुद्ध भुक्तानी: NPR ९०,००० - IRD मा जम्मा गर्ने TDS: NPR १०,०००
ERP लेखा सफ्टवेयरले प्रत्येक भुक्तानीमा स्वतः TDS ट्र्याक गर्न सक्छ।