Excel sheet for calculation of Salary TDS 2076-77, 2077-78 and 2078-79 as per income tax Nepal

For the financial year, the 2076-77 salary slab is changed. You can download the updated excel sheet for calculation of Salary TDS 2076-77 as per income tax Nepal. After the introduction of SSF(social security fund), there are certain changes in the Salary TDS calculation 2076-77 as per income tax Nepal.

Update: there is no change in the Tax rate for a salaried person in 2077/78 as well as 2078/79 finance bill so you can use the same sheet for 2077/78 and 2078/79 also

Link for old excel sheet download                 Salary Calculation Sheet 76-77 & 77-78

Link for the old sheet with 3L deduction      Salary sheet with 3L deduction of CIT and PF 

Link for SSF excel sheet download               SSF salary TDS calculation 76/77 and 77/78

Effect of SSF(Social Security tax) on the calculation of TDS.

  • For calculation of TDS as per normal provision (i.e Staff not registered in SSF) 1% SST should deduct in 1st 400000/450000 for single and couple respectively. Separate 1% SST need not be deducted on such amount if the staff is registered in SSF since contribution is already made in on SSF. No need to pay tax on 1st 400000/450000 if Staff is registered in SSF.
  • Maximum Deduction Rs 300000 is allowed for retirement contributions like PF and CIT, but such a limit is increased to 500000 in case of staff registered in SSF(social security tax) for Salary TDS calculation 2076-77 as per income tax Nepal. Retirement contribution consists only 28.33% out of 31% but there is no specific notification so you can consider 31 % until further notice

TDS on ssf

Note:  As per the income tax act Nepal, Payments of salaries and wages to workers/employees in excess of 3000 without PAN is an inadmissible expense so obtain PAN for all the staff.

Note: For calculation of  31% SSF of basic salary minimum 60% of total salary should consider for detail understanding read calculation of Minimum SSF(social security fund) contribution.

Note: Since there is no notification or circular regarding the effect of SSF except attached one so legal position regarding TDS for staff registered on the middle of the year is still unclear.

Income Tax Rate For Employee 2076/77 (2019/20) & 2077/78(2020/21)

Individual/Natural Person

Income Slab Tax Rate
Up to NPR 400,000 1%
Next NPR 100,000 10%
Above NPR 200,000 20%
Beyond NPR 600,000 30%
Taxable income > NPR 2,000,000 36% (20% additional tax on the calculation made under 30% slab)

 1.2 Married

Income Slab Tax Rate
Up to NPR 450,000 1%
Next NPR 100,000 10%
Above NPR 200,000 20%
Above NPR 550,000 30%
Taxable income > NPR 2,000,000 36%

Also Read: Tax Amendment by finance act 2077/78 (i.e 2020/21)

 

Sincere efforts have been made to avoid mistake or error or omission, however, there is always a scope of error so please check the formula for at least one person’s salary manually before use.

18 thoughts on “Excel sheet for calculation of Salary TDS 2076-77, 2077-78 and 2078-79 as per income tax Nepal

  • 2019-09-19 at 11:56 PM
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    There is mistake in salary TDS calculation 2076/77. You have to add tax (4500) for 450,000.00 also. In the sheet, it seems no tax levy upto 4,50,000.00..

    Reply
    • 2019-09-25 at 10:54 PM
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      Dear bijay,
      Check F3 for for SST on 450000/40o000,the reason behind showing SST and TDS separately is different revenue Code.Given formula is absolutely correct so feel free to use 🙂

      Reply
    • 2019-10-18 at 7:37 AM
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      excal sheet plz

      Reply
      • 2019-10-20 at 4:12 PM
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        Go through the story,link for download is attached after heading

        Reply
  • 2019-10-04 at 12:54 PM
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    Sir, do you have the new sheet with the contribution planning to SSF by 31%

    Reply
    • 2019-10-16 at 10:25 AM
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      From TDS prospective there is no change, but you don’t have to pay SST separately if 31% contribution made to Fund.

      Reply
  • Pingback: Excel sheet for Salary TDS calculation as per Nepal tax for 2075-76 | News Sangalo

  • Pingback: Finance act 2077/78 (2020/21) of Nepal -PDF Attached | News Sangalo

  • 2020-06-14 at 1:21 PM
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    Hi Sir,
    How much total deduction is available right now if employee contributes both in SSF and CIT
    Suppose Gross Taxable Income = Rs. 15 Lakhs
    SSF contribution = Rs. 2.5 Lakhs
    CIT contribution = 3 lakhs
    What is the total deduction?

    Reply
    • 2020-06-19 at 2:06 PM
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      Since there is no notification or circular regarding the effect of a given situation and above-attached notice clearly mention 500,000 deduction is for SSF only.but under common practice overall 500000 deductions are claimed with the assumption CIT is within 300000 and SSF is within 500000.
      you may find with this view too
      (2.5+3)/3= 1.633 CIT and 2.5 SST

      Reply
  • 2020-07-05 at 4:24 PM
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    Hi Sir
    Isnt there an issue in the calculation regarding allowed 500000 deduction for TDS?
    for eg, employer contribution(20%) on 100K basic salary = 20000
    employee contribution(11%) on 1000K basic salary = 11000
    so now, should not contribution deduction include 31000 a month which is 372000 annual? since employee is seeding 372000 to retirement fund.
    Aren’t employee’s 11% contribution gets that benefit? why only 240000? (2000×12) in your example excluding 11% of employee contribution?
    Thanks a lot for putting so nice article.

    Reply
    • 2020-07-06 at 4:02 PM
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      Dear Aryan
      Thanks for bringing it to our attention. the clerical error of I3 is rectified, from G3/31 to G3/20 and further update of 500000 deductions is made in the formula.

      Reply
      • 2020-07-06 at 8:23 PM
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        Thanks a lot for speedy fix, very nice of you.

        Reply
      • 2021-08-29 at 5:12 PM
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        Hi sir, how can see the excel sheet of this content.

        Reply
  • 2020-09-07 at 2:48 PM
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    can you also upload formula with contribution to PF by staff and Employer and also to CIT for remaining slab of 300000

    Reply
    • 2020-09-08 at 12:20 PM
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      Update made as requested for formula wit 3l deduction. please inform us in case of any error surface.

      Reply
  • 2021-04-06 at 12:00 AM
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    How is provident funds deductions handled while computing tax? Is employer matching also counted towards the deduction ceiling of (less of 300k or 1/3 gross)?

    Reply
    • 2021-04-09 at 3:51 PM
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      Yes,10% employees as well as 10% employer contribution are considered.

      Reply

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