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D01 Tax Return Nepal (2082/83): New Flat Rates & Eligibility Checklist

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By arjunbhattarai | Published: January 17, 2026 | Updated: January 17, 2026

For the thousands of kirana pasals, small tea shops, and local startups driving Nepal’s local economy, tax compliance shouldn’t be a burden. Enter the D01 Tax Return—the simplest tax regime in the country.

Known officially as the tax for “Micro-Enterprises,” the D01 return allows small business owners to pay a flat annual fee and close their books. However, in Fiscal Year 2082/83, the line between “Micro” and “Small” is stricter than ever. One calculation error on your profit margin could disqualify you instantly.

Nepal Tax Return Finder (2082/83)

Answer a few questions to find your form

1. What type of entity are you?
Natural Person (Sole Proprietor)
Company / Firm / Trust
2. Are you a professional consultant?

(e.g., Doctor, Engineer, Lawyer, Auditor, Freelancer)

Yes
No, I run a Business/Trade
3. Do you have multiple income sources?
  • Income from Investment or Employment + Business?
  • Claiming Medical Tax Credit (Sec 51/53)?
  • Claiming Advance Tax (Sec 93)?
Yes, any of these apply
No, none apply
4. Enter your annual financials (in Lakhs)

5. Where is your business registered?

Metropolitan City
Municipality
Rural Municipality
6. What is the nature of your business?
Gas/Cigarettes (3% Margin Goods)
General Trading (Retail/Wholesale)
Service Business
D0X Return
Description here
“D01 is the ultimate tax shield for micro-entrepreneurs—a flat fee, zero audit stress, and complete peace of mind.”

Who Can File the D01 Return?

The D01 return is a privilege, not a right. It is designed exclusively for low-turnover, low-margin businesses run by individuals. Before you head to the tax office, verify your eligibility against this strict criteria.

The “D01 Safe Zone” Checklist

You are eligible specifically for D01 only if you meet ALL of these conditions:

  • Natural Person Only: You operate as a sole proprietorship. (No Pvt Ltd).
  • Business Income Only: Your income comes purely from sales/business (no investment income).
  • Turnover Cap: Your total annual sales are below NPR 30 Lakh.
  • Profit Cap: Your net declared profit is below NPR 3 Lakh.

The “Disqualification” List

If any of the following apply to you, you are legally required to upgrade to D02 or D03:

  • Consultants & Professionals: Engineers, Doctors, Lawyers, Auditors, and Freelancers cannot file D01.
  • Tax Credit Claimants: If you claim Medical Tax Credit (Section 53) or Advance Tax (Section 93).
  • VAT Registered: If you are voluntarily registered in VAT, you cannot file D01.
Strategy Spotlight: The “Hidden Profit” Trap

Why Sales Under 30 Lakh Isn’t Enough

The most common mistake we see at BizSewa involves the Profit Cap. Many business owners focus solely on the “30 Lakh Sales” limit and ignore the “3 Lakh Profit” limit.

The Scenario: You run a boutique consulting firm or a high-margin service (e.g., a small repair shop). You sell NPR 20 Lakhs worth of services. Your costs are low, so your profit is NPR 10 Lakhs.

The Trap: Because your profit (10 Lakhs) exceeds the D01 limit (3 Lakhs), you are disqualified from D01, even though your sales are well under the 30 Lakh limit.

The Strategy: D01 is designed for trading businesses with thin margins (10-15%). If you have a high-margin business, do not force a D01 filing. The IRD’s automated system may flag your sector norms against your declared profit.

D01 Flat Tax Rates (FY 2082/83)

The D01 system does not calculate tax as a percentage. It uses a location-based Flat Fee. This means whether you sell 1 Lakh or 29 Lakhs, the tax amount remains the same based on where your business is registered.

Business Location Annual Flat Tax (NPR)
Metropolitan City (Mahanagarpalika)
Examples: Kathmandu, Lalitpur, Pokhara, Bharatpur		 NPR 7,500
Sub-Metro / Municipality (Nagarpalika)
Examples: Butwal, Dharan, Hetauda, Tikapur		 NPR 4,000
Rural Municipality (Gaunpalika)
Remote areas and village councils		 NPR 2,500

Pro Tip: This flat tax covers your income tax liability entirely. You do not need to pay separate installments (Poush/Asar) like D02 filers. You simply pay the full amount when filing the return.

Deadlines & Compliance Calendar

Since D01 filers do not pay advance tax installments, your compliance calendar is very simple. There is only one major date to remember.

Filing Window

  • Start Date: Shrawan 1st (Fiscal Year Start).
  • End Date: Ashoj End (Approx. mid-October).

If you miss the Ashoj deadline, you can request a 3-month extension. However, filing after Poush end without an approved extension will result in fines.

How to File Your D01 Return

  1. Log in to the IRD Taxpayer Portal.
  2. Select “D01 Return Entry” under the Income Tax tab.
  3. Enter your total Turnover (must be < 30 Lakh).
  4. The system will auto-calculate the tax (7500/4000/2500) based on your PAN registration address.
  5. Generate the voucher, pay via ConnectIPS or Bank, and Verify the return.

Frequently Asked Questions

My turnover is 31 Lakhs. Can I just file D01 anyway?

Absolutely not. The system is linked to your bank and VAT records. Under-reporting turnover to fit into D01 is tax evasion. If your turnover is 31 Lakhs, you must file a D02 return and pay the relevant percentage tax.

I am a freelance web designer earning 20 Lakhs. Can I file D01?

No. Freelancers and consultants are classified as “Professionals” by the IRD. Even with income under 30 Lakhs, professionals are generally required to file D03 (Actual Based) or sometimes D02 (Turnover Based), but D01 is strictly for trading/small business nature.

Can I pay the D01 tax in installments?

No. The D01 tax (7500/4000/2500) is a one-time payment made at the time of filing the return (usually between Shrawan and Ashoj).

About arjunbhattarai

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