How to Pay Tax Online in Nepal (All Payment Methods)

Standing in a bank queue to pay income tax, VAT, or TDS is no longer necessary for most Nepali taxpayers. The Inland Revenue Department (IRD), together with connectIPS and the country's banking network, now supports several online payment routes — from a direct bank-linked transfer to e-wallets and even a printable voucher for a bank counter visit. This guide walks through every method, the exact steps, and how to confirm your payment actually went through.

ConnectIPS and Bank Payment Options — The Big Picture

ConnectIPS, operated by Nepal Clearing House Limited (NCHL), is the backbone of online government payments in Nepal. It's a bank-neutral hub — meaning it isn't tied to a single bank the way your bank's own mobile app is — and it directly debits your linked bank account rather than requiring you to pre-load a wallet. ConnectIPS supports payments to the IRD, the Financial Comptroller General's Office (FCGO), vehicle tax, and several other government revenue heads, all from the same account.

Alongside connectIPS, several listed e-wallets such as eSewa and Khalti can also be used to pay a tax voucher generated on the IRD site, giving you a second digital route if you'd rather use a wallet you already use daily. If you prefer not to pay digitally at all, the same voucher can be printed and paid over the counter at any IRD-listed commercial bank branch — the online and offline routes both start from the same voucher generation step.

E-Payment via the IRD Portal — Step by Step

The process starts on the IRD Taxpayer Portal, whether you ultimately pay via connectIPS, an e-wallet, or a bank counter:

• Log in to the IRD Taxpayer Portal using your registered PAN and password.
• Select your bank from the IRD-approved list near your tax office.
• Choose the tax type — Income Tax, VAT, Excise, or TDS — depending on what you're paying.
• Select the revenue code (Shirshak) that matches the specific payment (for example, service fee/TDS codes differ from remuneration income tax codes).
• Enter the amount and confirm the correct fiscal year the payment relates to.
• Generate the Payment Reference Number (PRN) — sometimes shown as a transaction code or voucher number — after reviewing the details.
• Choose your payment method: connectIPS, a listed e-wallet (eSewa, Khalti), or print the voucher for a bank counter.

If you choose connectIPS, you'll be redirected to log in with your connectIPS username and password, select the bank account to debit, and confirm with your transaction password and/or the OTP sent to your registered mobile number or email. Once submitted, the IRD portal reflects the updated payment status.

Payment via Commercial Bank Counters

Not every taxpayer wants to complete a digital payment, and that's fine — the same voucher generated on the IRD portal can be taken to a physical branch of any IRD-listed commercial bank. Print the voucher (or note the PRN), visit the bank counter, and pay by cash or cheque. The bank will process the payment against your PRN and provide a stamped receipt, which serves the same purpose as a digital payment confirmation for your records.

This route is particularly useful for larger payments that may sit close to digital transaction limits, or for taxpayers who are more comfortable with an in-person, paper-based confirmation.

Payment Confirmation and Receipt Retrieval

Whichever method you use, always close the loop by confirming the payment status:

• Return to the IRD Taxpayer Portal and check that your payment status shows as Complete against the PRN you generated.
• Download and save the digital receipt immediately — don't rely on being able to retrieve it easily later.
• For bank counter payments, keep the physical stamped receipt safely, ideally alongside a scanned copy.
• Match your payment receipt against your VAT or income tax return before filing, so the figures reconcile.
• Retain receipts long-term — they're often required later for a tax clearance certificate or during an audit.

Frequently Asked Questions

Q1. Is there a transaction fee for online tax payment?

Yes, but it's small. ConnectIPS applies a slab-based fee for government revenue payments, including IRD tax — commonly in the range of roughly NPR 2 to 5 per transaction depending on the amount, since government tax payments are cross-subsidised compared to ConnectIPS's regular fund-transfer fees. E-wallets or bank counters may apply their own separate charges, so it's worth checking the fee shown before confirming payment.

Q2. What's the difference between paying via connectIPS and my bank's own mobile app?

ConnectIPS is a bank-neutral platform that can link accounts from multiple banks and is the standard rail government revenue payments are built around, including IRD tax. Your bank's own mobile app is tied to that one bank and may or may not offer a direct government-payment option — connectIPS tends to be the more consistently supported route across different banks for tax payments specifically.

Q3. Can I pay a large tax bill entirely online, or do I need to split it?

Digital payment channels do carry transaction and daily limits that vary by platform and by how your account is verified. If your tax payment is unusually large, check your connectIPS or bank app's current per-transaction and daily limits beforehand — you may need to split the payment across more than one transaction or day, or use a bank counter instead.

The days of losing half a day to a bank queue for a tax payment are largely over for most Nepali taxpayers. Generate your voucher on the IRD portal, pick whichever payment channel suits you — connectIPS, a wallet, or a bank counter — and always finish by confirming the status and saving your receipt. That last step is the one people skip, and the one you'll wish you hadn't when you need proof of payment later.