eTDSइ-टीडीएस
eTDS is the Inland Revenue Department's electronic format for withholding returns. It reports, employee by employee and against each personal PAN, how much tax the employer withheld and deposited for the period.
Also called: e-TDS, electronic TDS Nepal, withholding return Nepal
Key facts
- Defined by
- Inland Revenue DepartmentThe layout is the IRD's, not the vendor's.
- Frequency
- MonthlyAlongside the withholding deposit.
- Keyed on
- Employee PANOne line per employee.
- Submitted through
- The IRD taxpayer portalBy the taxpayer or their agent.
What the return contains
The eTDS return is the detail behind the deposit. The deposit is one figure; the return breaks that figure down by employee, each identified by their personal PAN, so the tax office can credit each individual with the tax withheld from their salary.
An employee missing from the return, or listed against a wrong PAN, has effectively had tax deducted that nobody has credited to them. That surfaces much later, usually when the employee needs proof of tax paid.
Generating the file and submitting it are two steps
A payroll system produces the eTDS file in the IRD's layout. Submission through the taxpayer portal is a separate act, done by the taxpayer or by the agent they authorise. It is worth being precise about which of the two your process covers, because assuming the software did the second one is how a month gets missed.
What makes a clean return
- Every employee has a verified personal PAN on file before their first payroll run.
- Names on the return match the names on the PAN certificates.
- Leavers are reported for the months they were actually paid in, and not after.
- The sum of the return's lines equals the amount deposited, to the rupee.
eTDS, answered
It is the Inland Revenue Department's electronic format for withholding returns. It reports the tax withheld from each employee's salary against that employee's personal PAN, alongside the monthly deposit.
Monthly, with the withholding deposit that is due within 25 days of the end of each month.
Producing the file in the IRD's format and submitting it through the taxpayer portal are separate steps. Check which one your process covers, and who is authorised to do the submission.
- Inland Revenue Department published eTDS specification and taxpayer portal procedures.
This page explains general practice in Nepal. It is not legal or tax advice, and statutory figures are revised from time to time. Check the current Act, rule or notice before acting on it.
Related terms
- TDS (Tax Deducted at Source)स्रोतमा कर कट्टीTDS is income tax withheld by the employer from an employee's salary each month and deposited with the Inland Revenue Department on the employee's behalf. It is calculated on annual projected income and spread across the year, not charged month by month in isolation.
- Inland Revenue Department (IRD)आन्तरिक राजस्व विभागThe Inland Revenue Department is Nepal's tax administration, responsible for income tax, VAT and excise. For payroll it is the body that publishes the tax slabs, issues PANs, receives monthly withholding deposits and defines the eTDS format.
- PAN (Permanent Account Number)स्थायी लेखा नम्बरA PAN is the taxpayer identification number issued by Nepal's Inland Revenue Department. Every employee needs a personal PAN for the tax withheld from their salary to be credited to them, and every employer needs a business PAN to deposit it.
- Payroll Cycleतलब चक्रThe payroll cycle is the repeating sequence a company runs each pay period: collect attendance and leave, calculate earnings and deductions, approve, pay, and file. In Nepal it runs on Bikram Sambat months and carries a statutory deadline at the end.
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