What Changed in FY 2083/84 — The Big Picture
The Finance Bill 2083 (passed alongside the FY 2083/84 Budget) introduces the most significant personal income tax restructuring in Nepal in years. Finance Minister Dr. Swarna Wagle announced the headline changes in Budget Speech paragraph 7(क):
1. Income tax exemption threshold doubled — from NPR 5,00,000 to NPR 10,00,000 for all taxpayers (individuals and couples now share the same threshold).
2. Top rate reduced and slab structure simplified — the maximum standard rate drops to 27% (with a 2% surcharge above NPR 40L). The old 30%, 36%, and 39% rates are gone.
Importantly, the Finance Bill also unifies the couple and single thresholds — both now start at NPR 10,00,000. The old separate couple bands (NPR 6L, 8L, 11L) are abolished.
New Salary TDS Slabs Nepal 2083/84 — Section 87
Below are the verified slabs from Finance Bill 2083, Section 57(26), Annex-1, दफा १, उपदफा (1). These apply to both individuals and couples.
| Annual Taxable Income | Tax Rate | Tax Payable (cumulative) | Notes |
|---|---|---|---|
| Up to Rs. 10,00,000 | 1% | Rs. 10,000 | Social Security Tax — applies to all including SSF contributors |
| Rs. 10,00,001 – 15,00,000 | 10% | Rs. 10,000 + 10% on excess | — |
| Rs. 15,00,001 – 25,00,000 | 20% | Rs. 60,000 + 20% on excess | — |
| Rs. 25,00,001 – 40,00,000 | 27% | Rs. 2,60,000 + 27% on excess | Top standard rate — reduced from 30% |
| Above Rs. 40,00,000 | 27% + 2% surcharge | Rs. 6,65,000 + 29% on excess | Extra 2% surcharge per Finance Bill clause (ङ) |
Old vs New Slabs — Side by Side
The table below compares the 2082/83 slabs against the new 2083/84 structure for a single taxpayer. Couple slabs are now identical to single (the separate +NPR 1L couple bands no longer exist).
| FY 2082/83 Slab (Old — Single) | Rate | FY 2083/84 Slab (New — All) | Rate | Change |
|---|---|---|---|---|
| Up to Rs. 5,00,000 | 1% | Up to Rs. 10,00,000 | 1% | 🔼 Threshold doubled |
| Rs. 5,00,001 – 7,00,000 | 10% | Rs. 10,00,001 – 15,00,000 | 10% | 🔼 Threshold raised |
| Rs. 7,00,001 – 10,00,000 | 20% | Rs. 15,00,001 – 25,00,000 | 20% | 🔼 Threshold raised |
| Rs. 10,00,001 – 20,00,000 | 30% | Rs. 25,00,001 – 40,00,000 | 27% | 🔽 Rate reduced 3pp + threshold raised |
| Rs. 20,00,001 – 50,00,000 | 36% | Above Rs. 40,00,000 | 27%+2%=29% | 🔽 Rate reduced; slab removed |
| Above Rs. 50,00,000 | 39% | — | — | 🔽 Top rate abolished |
Calculate Your Tax Saving — FY 2083/84
Use the calculator below to see your exact monthly TDS under the new slabs, and how much you save compared to FY 2082/83.
Real-World Examples — Tax Before & After
Five salary scenarios showing the correct tax liability under both old and new slabs (single taxpayer, no SSF deduction). All figures are verified against the Finance Bill 2083 slab formula.
| Monthly Salary | Annual Taxable | Annual Tax 2082/83 | Annual Tax 2083/84 | Annual Saving | Monthly Saving |
|---|---|---|---|---|---|
| NPR 50,000/mo | NPR 600,000/yr | NPR 15,000.00 | NPR 6,000.00 | + NPR 9,000.00 | + NPR 750.00 |
| NPR 83,333/mo | NPR 999,996/yr | NPR 84,999.20 | NPR 9,999.96 | + NPR 74,999.24 | + NPR 6,249.94 |
| NPR 100,000/mo | NPR 1,200,000/yr | NPR 145,000.00 | NPR 30,000.00 | + NPR 115,000.00 | + NPR 9,583.33 |
| NPR 150,000/mo | NPR 1,800,000/yr | NPR 325,000.00 | NPR 120,000.00 | + NPR 205,000.00 | + NPR 17,083.33 |
| NPR 200,000/mo | NPR 2,400,000/yr | NPR 529,000.00 | NPR 240,000.00 | + NPR 289,000.00 | + NPR 24,083.33 |
Couple Threshold — What Changed
Under 2082/83, couples (दम्पती) had a separate, slightly higher exemption threshold (NPR 6,00,000 vs NPR 5,00,000 for singles). The Finance Bill 2083 abolishes the separate couple bands and sets a unified NPR 10,00,000 threshold for both.
SSF / Pension Deductions — Unchanged
The SSF / approved pension deduction under Section 63 is unchanged. Employees can still deduct contributions up to NPR 3,00,000 per year before applying the new slabs.
Example: An employee earning NPR 80,000/month contributing NPR 20,000/month to SSF has annual taxable income of NPR 7,20,000. Under the new slabs, they pay NPR 7,200/year (1% on NPR 7.2L). Under 2082/83, the same employee paid NPR 32,000/year — a saving of NPR 24,800/year.
Who Benefits Most
| Salary Range | Impact | Why |
|---|---|---|
| Up to NPR 83,333/month | 🟢 Only 1% (social security tax) | Falls entirely within new 1% slab |
| NPR 84,000 – 1,25,000/mo | 🟢 Large saving | Lower portion taxed at 1% instead of 10–20% |
| NPR 1,25,001 – 2,08,333/mo | 🟢 Moderate saving | Old 30% slab becomes 20%; boundaries raised |
| NPR 2,08,334 – 3,33,333/mo | 🟢 Meaningful saving | Old 30%→36% becomes flat 27% |
| Above NPR 3,33,333/mo | 🟡 Some saving | Top effective rate 29% vs old 36%–39% |
Employer Checklist
IRD Revenue Code — Unchanged
The IRD revenue code for salary TDS remains 11112. Nothing changes at the deposit level — only the calculation method changes.