Nepali Fiscal Yearआर्थिक वर्ष
Nepal's fiscal year runs from the first of Shrawan to the last day of Ashad in the Bikram Sambat calendar, which is roughly mid-July to mid-July in the Gregorian calendar. Tax slabs, leave accrual, bonuses and annual returns all follow it.
Also called: Bikram Sambat fiscal year, BS fiscal year, Shrawan to Ashad, arthik barsha
Key facts
- Starts
- Shrawan 1Roughly mid-July.
- Ends
- Last day of AshadRoughly mid-July the following year.
- Calendar
- Bikram SambatAround 56 to 57 years ahead of the Gregorian year.
- Drives
- Slabs, leave, bonus, returnsAlmost every annual HR cycle.
Why it matters more than it looks
A company running on a Gregorian calendar and a Nepali fiscal year keeps two clocks. Tax slabs change at Shrawan, leave entitlements reset at Shrawan, the bonus is computed on the Shrawan to Ashad profit, and the annual return covers those twelve months. Meanwhile invoices, bank statements and most software default to Gregorian dates.
The reconciliation cost of that mismatch is usually a spreadsheet somebody maintains by hand, converting one to the other every month. It is also where errors enter, because Bikram Sambat months do not have a fixed number of days and do not line up with Gregorian month boundaries.
What resets at Shrawan
- Income tax slabs and any budget changes to them.
- Annual leave entitlement and the accrual clock.
- The assessable income period used for the retirement contribution ceiling.
- The profit period the annual bonus is calculated on.
The practical rule for payroll
Run payroll on Nepali months, not Gregorian ones. A payroll period that spans a Bikram Sambat month boundary makes leave accrual, attendance summaries and the monthly withholding return disagree with each other, and each of them has to be reconciled separately afterwards.
Nepali Fiscal Year, answered
On Shrawan 1 in the Bikram Sambat calendar, which falls around mid-July. It ends on the last day of Ashad the following year.
Bikram Sambat is Nepal's official calendar, so government reporting periods, tax years and statutory deadlines are all defined in it. Payroll that runs on Gregorian months ends up reconciling against those deadlines by hand.
It is the cleanest. Starting at Shrawan means opening balances for leave and tax begin at zero rather than being migrated mid-year, and the first annual return covers a full period in one system.
- Government of Nepal fiscal year definition, Shrawan 1 to the end of Ashad in the Bikram Sambat calendar.
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
- Income Tax Slabsआयकर दरNepal's personal income tax is charged at marginal rates across annual income bands. For FY 2083/84 the first NPR 1,000,000 is taxed at 1%, rising through the bands to a top marginal rate of 29%.
- 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.
- Home Leaveघर बिदाHome leave is Nepal's annual paid leave entitlement. Under the Labour Act 2074 an employee earns one day of home leave for every twenty days worked, and unused days accumulate up to a ceiling of ninety.
- Annual BonusबोनसThe annual bonus is a share of an enterprise's net profit distributed to its employees under the Bonus Act 2030. Ten percent of net profit is set aside for the purpose, and what remains after distribution goes to welfare funds.
- 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.
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