Nepal's fiscal year runs from 1 Shrawan to 32 Ashadh, so FY 2083/84 began on 17 July 2026 and ends in mid-July 2027. The Inland Revenue Department (IRD) has published its calendar, and while the dates follow the same pattern as previous years, the Finance Act 2083 changed several thresholds and the Taxpayer Portal now blocks late e-filing without a penalty payment first. This article lists the deadlines that apply to most of our clients and what it costs to miss each one.
Advance income tax instalments
Any taxpayer whose estimated annual tax exceeds NPR 7,500 must pay advance tax in three instalments under Section 94 of the Income Tax Act 2058. The instalments are 40% of estimated tax by the end of Poush, 70% cumulatively by the end of Chaitra and 100% by the end of Ashadh. If the total paid by year end is less than 90% of the final assessed tax, interest of 15% per annum runs on the shortfall from the instalment dates.
| Obligation | Deadline (BS) | Deadline (AD, approx.) | Penalty if missed |
|---|---|---|---|
| First advance tax instalment (40%) | Poush end 2083 | 14 January 2027 | 15% p.a. interest on shortfall |
| Second advance tax instalment (70%) | Chaitra end 2083 | 13 April 2027 | 15% p.a. interest on shortfall |
| Third advance tax instalment (100%) | Ashadh end 2084 | 16 July 2027 | 15% p.a. interest on shortfall |
| Annual income tax return (D-01 / D-02 / D-03) | Ashoj end 2084 | 17 October 2027 | 0.1% of turnover or NPR 100/month, whichever is higher |
| Monthly VAT return and payment | 25th of following month | Each month | 10% p.a. interest plus NPR 1,000 or 0.05%/day |
| TDS deposit and e-TDS return | 25th of following month | Each month | 1.5% per month interest plus 2.5% fee |
VAT and TDS: the monthly rhythm
VAT-registered businesses file a monthly return and pay any net VAT by the 25th of the following Nepali month, even if the return is nil. Businesses with annual turnover below NPR 10 million can apply for four-monthly (trimester) filing. Tax deducted at source on salaries, rent, contractor payments and professional fees must be deposited and the e-TDS return filed by the same 25th-day deadline, and the IRD portal now matches TDS returns against the recipient's PAN, so missing entries generate automatic notices.
The annual return and audit threshold
Companies and firms file their annual income tax return within three months of the fiscal year end, that is by the end of Ashoj. Companies must attach audited financial statements regardless of size, while sole proprietors need an audit only if turnover exceeds NPR 10 million. A three-month extension to the end of Poush is available if requested through the portal before the original deadline, but the extension covers the return only; the tax itself remains due by Ashadh end.
Individuals with only employment income
If your only income is a salary from which your employer deducts tax, you are not required to file an annual return. You should, however, obtain your annual TDS certificate from the employer and check it against your PAN record on the portal. Employees with rental income, freelance income or capital gains from share sales must file a D-03 return by Ashoj end.
- Reconcile your books to bank statements before Ashadh end, not after
- Confirm the auditor's appointment early; audit firms are fully booked by Bhadra
- Match every TDS certificate you have received against the IRD portal
- Apply for an extension before the deadline if the audit will not be ready
- Keep the portal submission receipts; they are your only proof of timely filing