FY 2083/84 路 Nepal 路 NPR
How Talab calculates Nepal salary and income tax
Use this guide to understand the estimate and check each step against your employment contract and payroll records. It describes the calculation implemented in Talab for FY 2083/84, rather than providing a complete personal tax assessment.
Start with the right amounts
Gross salary is regular cash pay before employee deductions and tax. Basic salary is the contractual amount used for automatic SSF or PF contributions. Enter basic salary separately; the prefilled NPR 60,000 and the optional 60% are examples, not a statutory ratio.
Basic salary is always monthly. A monthly gross input is regular monthly pay. An annual gross input is the full-year regular pay, including earlier regular salary when salary-change mode is enabled. Add bonuses, festival allowance, overtime and commission in their own annual fields only once.
The annual calculation, step by step
- Add current regular gross for remaining payroll months to any prior regular cash. Add separately entered annual cash extras to obtain annual cash gross.
- Calculate automatic employee and employer SSF/PF from monthly basic salary. Add eligible manual contributions and any earlier contributions entered in salary-change mode.
- Build assessable income from cash gross, employer approved retirement contributions, funded eligible gratuity and taxable non-cash benefits. Entered pension and other assessable income also affect the tax estimate.
- Subtract eligible approved retirement relief and personal income deductions, then donation relief. Apply the configured caps; taxable income cannot be less than zero.
- Apply the configured progressive resident bands, the selected first-band exemption, and eligible rebates and medical credit. The simplified non-resident path uses its separately configured rate.
- Subtract employee contributions, actual cash payroll deductions and estimated income tax from salary cash to obtain take-home pay. Employer contributions and entered employer costs are added to gross to obtain employer cost.
SSF, PF and retirement relief
The stored SSF parameters are 11% employee and 20% employer contributions on basic salary. The PF parameters are 10% each. In the PF example, the separately selected 8.33% gratuity is an employer cost. An accrued cost enters the retirement deduction only if it is marked as actually deposited in an eligible approved fund.
For a resident, the model limits approved retirement relief to the lowest of actual eligible contributions, NPR 500,000 and one third of assessable income. The first-band tax exemption is a separate condition: selecting PF or CIT alone does not switch it on. Confirm eligibility with payroll and current official guidance.
An income deduction is different from a tax credit
An income deduction reduces taxable income. A tax credit or rebate reduces the tax calculated afterwards. The model applies life, health, home insurance, tuition and other selected resident relief before tax; the female remuneration-only rebate and medical credit are applied after the band calculation.
Entering insurance, tuition or a donation does not deduct that payment again from salary cash. If your employer actually withholds it from payroll, put the cash withholding in Other cash payroll deductions as well. Enter only relief for which you qualify; the calculator cannot verify receipts or eligibility.
Monthly results, annual extras and salary changes
Monthly net is regular take-home after the estimated monthly TDS. Annual net includes annual cash extras and the estimated final annual tax liability. A bonus can therefore change monthly estimated tax without being added to every month's cash pay. Annual manual contributions and payroll deductions are averaged over the employed months.
For a salary change, enter earlier regular salary and contributions, TDS already withheld and the number of months remaining. Current salary applies only to those remaining months. Remaining monthly TDS is the positive difference between estimated annual tax and tax already withheld, divided by remaining months. Excess withholding is reported separately; it is not added to pay as an automatic refund.
Reverse calculations and rounding
Net-to-gross and employer-cost-to-gross reuse the same forward calculation. Talab searches for the closest monthly gross in paisa, then shows the matching breakdown. A fixed basic salary or fixed deductions can make some targets impossible.
Automatic contributions are rounded monthly to two decimal places before annualisation. Band tax and annual results are also rounded to paisa. Monthly TDS is rounded separately, so a payroll system may reconcile a small remainder in a later month. The annual bands and relief amounts are not automatically prorated by months employed.
Coverage and verification limits
Only FY 2083/84 is implemented. This salary estimate does not prepare a complete tax return, verify residence, allocate withholding across multiple employers, calculate foreign tax credits or value unusual director/owner benefits. Actual payslips may differ because of timing, eligibility and payroll adjustments.
The initial rule snapshot is dated 3 October 2026. Its parameters follow the project's supplied FY 2083/84 specification. The original verification recorded an incomplete Finance Act PDF download; a complete independent legal audit was not performed. The site-content update below is separate from that rule snapshot. Check the latest official rules and consult payroll for a consequential decision.
Primary references and the implemented snapshot
The links below identify the official publications used as references. An external source being temporarily unavailable does not establish that the underlying rule has changed. Talab's example results describe the stored version, not a new legal verification.