TDS stands for Tax deducted at source which is also known as withholding Tax. Four Ace Business Solutions help you through the TDS filing process, helping you understand its purpose, calculation methods, deadlines, and more. TDS rates in Nepal may vary depending on the type of income and the status of the taxpayer.
Monthly TDS Returns: Within 25th day from the end of each month
TDS Payment: To be deposited within 25th day from the end of each month
Annual TDS Returns: Must be filed by the end of the fiscal year (mid-July)
TDS on salary is calculated based on the employee's annual income (including allowance and benefits) and applicable Nepal government Tax slabs.
Banks and financial institutions deduct TDS on interest earnings at a flat rate of 5% for resident individuals.
TDS on dividends is deducted at a rate of 5% for both resident and non-resident individuals.
TDS on rent payments is calculated at 10% of the gross rent amount for both residential and commercial properties.
For payments made to contractors, TDS is deducted at 1.5% of the gross payment amount.
TDS on fees for professional services is calculated at 15% of the gross payment if service provider registered in PAN. TDS on fees for professional services is calculated at 1.5% of the gross payment if service provider registered in VAT.