Tax Deduction at Source (TDS) Rates (FY 2075-76)

Nature of Transaction TDS Rate
Interest income from deposit up to Rs 10000 under 'Micro Finance Program', 'Rural Development Bank', 'Postal Saving Bank' & Co-Operative (u/s-11(2ka) in village municipality areas(Previously rural areas) Exempt from tax
Wind fall gains 25%
Wind fall gains from Literature, Arts, Culture, Sports, Journalism, Science & Technology and Public Administration amount received up to 5 lacs Nil
Profit and Gain from Transaction of commodity future market 10%
Profit and Gain from Disposal of Shares: TDS rates
In case of Individual
- Listed Shares 7.5%
- Non Listed Shares 10%
Resident Entity
- Listed Shares 10%
- Non Listed Shares 15%
Others
- Listed Shares 25%
- Non Listed Shares 25%
On dividend paid by the resident entity.
- To Resident Person
- To Non Resident Person		 5% for both
On payment of gain in investment insurance 5%
On payment of gain from unapproved retirement fund 5%
On payment of interest or similar type having source in Nepal to natural person [ not involved in any business activity ] by Resident Bank, financial institutions or debenture issuing entity, or listed company 5%
Payment made by natural person relating to business or other payments relating to house rental except house rent No TDS
Payment for articles published in newspaper No TDS
Interest payment to Resident bank, other financial institutions No TDS
Interregional interchange fee paid to credit card issuing bank No TDS
Interest or fees paid by Government of Nepal under bilateral agreement No TDS
On payment of general insurance premium to resident insurance company No TDS
On payment of premium to non-resident insurance company 1.5%
Contract payment exceeding Rs 50000 for a single contract within 10 days. 1.5%
Interest & Dividend paid to Mutual Fund No TDS
Payment of consultancy fee:
- to resident person against VAT invoice
- to resident person against non VAT invoice
1.5%
15%
Payment on contract to Non Resident Person
- On service contract(For both Resident & Non Resident Person)
- On repair of aircraft & other contract
- In cases other than above as directed by IRD.
15%
5%
TDS deducted on payment of dividend made by Mutual fund to natural Person is final withholding Tax. 5%
TDS on Payment by Resident Person for utilizing services related with Satellite, Bandwidth, Optical Fiber, equipment relating to telecommunications or electric transmission 10%
Dividend Paid by Partnership Firm to its Partners 5%
Payment for the freight to transportation service 2.5%
Payment made against question setting, answer evaluation 15%
Payment to Non Resident Company against Insurance Premium 1.5%
Payment to Non Resident Company against Commission paid for Reinsurance 1.5%
Payment made to Consumer Committee 1.5%
Commercial Import of Buffalo, Goat, Sheep, Fresh & Frozon Fish, Fruits, 5% of Custom Value