The fiscal year
Nepal's fiscal year runs from Shrawan 1 to Ashadh end, roughly mid-July to mid-July. FY 2083/84 began around 17 July 2026. Budgets are presented on Jestha 15 (late May) and the Finance Act that follows sets the rates for the year ahead.
The three instalments
Anyone whose estimated annual tax exceeds रु 7,500 pays it in advance:
| Instalment | Cumulative amount | Due (Nepali) | Approx. Gregorian |
|---|---|---|---|
| First | 40% | Poush end | mid-January |
| Second | 70% | Chaitra end | mid-April |
| Third | 100% | Ashadh end | mid-July |
The instalments are based on an estimated tax return you file with the first instalment. If you underestimate by more than 10–20%, interest applies, so revise the estimate at the second instalment if income has changed.
TDS already withheld on your income counts toward the instalments.
The annual return
The self-assessment return is due within three months of year-end, by Ashwin end (mid-October). You may apply for an extension of up to three months, to Poush end, but interest on unpaid tax runs from Ashwin end regardless.
Which return form
- D-01: presumptive tax for very small businesses (fixed amount based on location).
- D-02: turnover-based tax for small businesses below the VAT threshold.
- D-03: the standard self-assessment return for individuals with income above the thresholds and for all companies.
Monthly obligations alongside
VAT and TDS returns are due on the 25th of the following month. These continue through the year independent of the instalment schedule.
A simple annual rhythm
- Shrawan–Ashwin: close last year's books, audit, file annual return.
- Poush: estimate this year, pay 40%.
- Chaitra: revise estimate, pay to 70%.
- Ashadh: pay to 100%, finalise the year.
This guide is general information for Nepal taxpayers, not advice for your specific situation. Rates and thresholds change with each Finance Act; confirm current figures with the IRD or with us before acting.
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