TDS basics every Nepali business should know

When to deduct, how much, and when to deposit — without the jargon.

TDS — tax deducted at source — applies when you pay rent, salaries, contracts and professional fees. You deduct a percentage, deposit it with the tax office, and issue a certificate to the person you paid.

The most common mistake is deducting TDS but depositing it late. The deposit is due by the 25th of the following Nepali month, and late deposits carry interest.

Keep a simple TDS register, deposit on time, and issue certificates promptly. Your vendors and staff will thank you, and your annual return will be straightforward.