Master the step-by-step IRD portal filing process (Form D-01/D-03), reconcile your TDS, avoid Section 117 penalties, and download your official Kar Chukti Pramanpatra.
Filing an Annual Tax Return (Aamdani Bibaran Dakhila) is the formal statutory declaration submitted by a taxpayer to the Inland Revenue Department (IRD) detailing all gross income earned from employment, business, and investments during the previous fiscal year (Shrawan 1 to Ashadh end). A Tax Clearance Certificate (Kar Chukti Pramanpatra) is the official government document certifying that the taxpayer owes zero outstanding tax dues to the state.
A Tax Clearance Certificate is essential in Nepal: foreign embassies require it for student and tourist visa processing, commercial banks demand it for approving home and business loans, and government agencies mandate it for trade licenses and procurement tenders. Failing to file returns triggers compounding monthly fines under Section 117 (0.1% per year or NPR 100/month), freezing your tax profile.
Collect your annual employer salary statement, bank interest tax certificates, broker CGT statements, and consulting TDS deduction memos across the fiscal year.
Navigate to "Taxpayer Portal" → "Income Tax" → "Return Submission". Select your fiscal year (e.g., 2080.2081) and choose the appropriate return form (Form D-01 for individuals/consultants).
Enter total assessable income. Declare your deductions: retirement fund contributions (SSF/CIT up to NPR 5L), life insurance (up to NPR 40K), and health insurance (up to NPR 20K). Your net tax liability calculates automatically.
Import all TDS deposited to your PAN. If tax payable is zero or fully covered by TDS, submit the return. Click "Tax Clearance" → generate your official QR-coded Kar Chukti Pramanpatra instantly.
| Return Form | Target Taxpayer Category | Income / Turnover Threshold | Audit Requirement |
|---|---|---|---|
| Form D-01 | Salaried individuals with single/multiple employers, freelance consultants | Turnover under NPR 50 Lakh, simple income | No audit required; self-declaration |
| Form D-02 | Small sole proprietorships and retail traders under presumptive tax | Annual turnover up to NPR 30 Lakh / NPR 1 Crore | Presumptive flat tax; no audit |
| Form D-03 | Pvt Ltd companies, partnerships, large sole proprietorships | Annual turnover above NPR 50 Lakh or complex balance sheet | Mandatory audit by Registered Auditor (RA/CA) |
| Form D-04 | Specialized institutions (cooperatives, exempt entities) | Non-profit, diplomatic, or tax-exempt entities | Statutory audit by licensed CA |
Under Section 97 of the Income Tax Act, salaried individuals who earn income from only ONE resident employer and have zero other income sources are technically exempt from filing a separate individual return (their employer's annual ETDS filing acts as their deemed return). However, if you need a Tax Clearance Certificate for a foreign visa (US, UK, Australia, Schengen) or a bank loan, you MUST voluntarily submit Form D-01 on the IRD portal to generate the certificate.
Deepak applied for an Australian family visitor visa. The embassy requested his past three years of Tax Clearance Certificates. Deepak had never filed a return, assuming the 15% TDS deducted by his clients meant his tax duties were complete.
He logged into the IRD portal, selected Form D-01, and input his 4 consulting contracts. He reconciled NPR 2,70,000 in TDS already sitting in his PAN ledger. His computed slab tax was NPR 2,45,000. He had an excess tax credit of NPR 25,000. Within 2 hours of submitting, he downloaded his official QR-coded Kar Chukti Pramanpatra, which satisfied the embassy requirement.
Goal & Dilemma: Resolving tax status on NPR 800,000 salary + NPR 300,000 consulting income with 15% advance TDS withheld.
Gross earnings minus approved Section 63 retirement and insurance deductions.
Total tax deducted at source deposited under your PAN during the fiscal year.
Advance quarterly income tax installments deposited under Section 94 (Poush, Chaitra, Ashadh).
Gross income = NPR 16,00,000. Approved deductions (CIT + Life Ins) = NPR 4,40,000. Taxable income = NPR 11,60,000. Computed tax liability = NPR 1,22,500. Total TDS already deposited by clients = NPR 1,50,000. Net Balance = 1,22,500 - 1,50,000 = NPR (27,500) refundable credit. Clearance certificate issued with zero extra payment.
Assuming that having TDS deducted excuses you from filing an annual return.
TDS is advance withholding; you must still file Form D-01 if you need a Tax Clearance Certificate.
Missing the Poush end deadline for filing income tax returns.
Apply for a 3-month extension before Ashwin end if you cannot meet the standard deadline.
Typing incorrect PAN numbers when depositing self-assessment tax at the bank.
Always generate the official "Tax Payment Voucher (Voucher Number)" from the IRD portal.
Yes. Once your return is submitted and any outstanding dues are cleared via connectIPS or bank voucher, you can download your digitally signed, QR-coded certificate directly from the portal.
The deadline is within 3 months of the fiscal year end (Ashwin end / mid-October). Taxpayers can apply online before Ashwin end to extend the deadline to Poush end (mid-January).
If you have only one employer, your employer's ETDS filing suffices for legal compliance. However, if you need a Tax Clearance Certificate for a visa or loan, you must file Form D-01 voluntarily.
Under Section 96 of the Income Tax Act, the deadline to file annual returns for the previous fiscal year is within 3 months of year-end (Ashwin end, roughly mid-October), extendable up to Poush end upon formal application.
A Tax Clearance Certificate is official legal proof that you have zero outstanding tax debts with the Government of Nepal, required for visa applications, government tenders, and bank loan processing.