Advance Tax Instalment Calculator (Estimated Tax)
Split your estimated income tax into the Poush, Chaitra and Ashadh instalments, after TDS, with BS and AD due dates.
How it works
Under section 94 of the Income Tax Act, anyone with business or investment income pays estimated tax in three instalments: 40% of the year's estimated tax by the end of Poush, 70% by the end of Chaitra and 100% by the end of Ashadh, each less TDS already deducted. An instalment under NPR 7,500 need not be paid.
= NPR 30 lakh
Tax withheld by your customers counts towards the instalments.
Estimated tax for the year
NPR 7,50,000
- End of Poush (40% cumulative)
- NPR 2,80,000
- End of Chaitra (70% cumulative)
- NPR 2,10,000
- End of Ashadh (100% cumulative)
- NPR 2,10,000
| End of Poush | 30 Poush 2083 BS | 14 Jan 2027 |
| End of Chaitra | 30 Chaitra 2083 BS | 13 Apr 2027 |
| End of Ashadh | 32 Ashadh 2084 BS | 16 Jul 2027 |
Income Tax Act s. 94: pay 40%, 70% and 100% of the estimated tax (less TDS) by the end of Poush, Chaitra and Ashadh. An instalment under NPR 7,500 need not be paid. Short payments attract interest at the general rate (15% a year) under s. 118.
How the instalments work
- 1
Estimate the year's profit
Use management accounts or last year's figures, adjusted for expected growth.
- 2
Apply the tax rate
25% for most companies, 30% for banks, insurers, telecom, tobacco and alcohol businesses, an effective 20% for special industries; individuals use the personal slabs.
- 3
Subtract TDS
Tax your customers withheld from your invoices counts towards each instalment.
- 4
Pay the cumulative share
Top up to 40%, 70% and 100% by the three dates and keep the challans for the return.
What happens if you pay too little
Section 118 charges interest on the shortfall at the general interest rate (15% a year), counted month by month from the instalment date until the return is filed. Re-estimate in Chaitra if the year is going better than planned — it is cheaper than paying interest.
The full year-end routine, including the return due within three months of year end, is in our annual tax planning guide. Use the compliance deadline generator to put the three dates in your calendar.
Questions about this tool
Who has to pay advance tax in Nepal?
Any person who has or expects assessable income from a business or investment in the year — companies, firms and individuals with such income.
When are the instalment dates?
The last day of Poush (about mid-January), Chaitra (about mid-April) and Ashadh (about mid-July).
Is employment income included?
No. Salary tax is deducted monthly by the employer; instalments cover business and investment income.
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