How to calculate NEPSE share profit and Capital Gains Tax in Nepal
When you sell a share on NEPSE, what you actually receive in your bank is meaningfully different from (sell price − buy price) × quantity. Three regulatory deductions — broker commission set by SEBON, the SEBON regulatory fee, and the CDSC depository charge — sit between you and the gross profit, then Capital Gains Tax under the Income Tax Act 2058 is deducted at source on the sell side. This calculator walks through each one in the order brokers apply them.
SEBON broker commission tiers
| Transaction value (per leg) | Rate |
|---|---|
| Up to Rs 50,000 | 0.40% |
| Rs 50,001 – Rs 5,00,000 | 0.37% |
| Rs 5,00,001 – Rs 20,00,000 | 0.34% |
| Rs 20,00,001 – Rs 1,00,00,000 | 0.30% |
| Above Rs 1 crore | 0.27% |
Source: SEBON Brokerage Commission Regulation. Minimum Rs 10 per transaction. Applied to both buy and sell legs separately.
Capital Gains Tax rates
| Investor | Holding period | CGT rate |
|---|---|---|
| Individual | ≤ 365 days (short-term) | 7.5% |
| Individual | > 365 days (long-term) | 5% |
| Institutional | Any (no holding rule) | 10% |
The full calculation
// Buy leg (cash out)
Total buy cost = (qty × buy_price) + buy_commission + buy_sebon + Rs 25
// Sell leg (gross proceeds)
Sell turnover = qty × sell_price
Sell expenses = sell_commission + sell_sebon + Rs 25
// CGT
Capital gain = (sell_turnover − buy_turnover) − all_6_expenses
CGT = max(0, capital_gain) × rate
// Bottom line
Bank credit = sell_turnover − sell_expenses − CGT
Worked example
Individual investor buys 100 NTC shares at Rs 800 each, holds for 200 days, sells at Rs 1,000 each.
- Buy turnover: 100 × 800 = Rs 80,000
- Buy commission @ 0.37%: Rs 296
- Buy SEBON @ 0.015%: Rs 12
- Buy DP charge: Rs 25
- Total cash paid: Rs 80,333
- Sell turnover: 100 × 1,000 = Rs 1,00,000
- Sell commission @ 0.37%: Rs 370
- Sell SEBON @ 0.015%: Rs 15
- Sell DP charge: Rs 25
- Gross profit: 1,00,000 − 80,000 = Rs 20,000
- Total transaction costs: Rs 743
- Capital gain: Rs 19,257
- CGT @ 7.5% (short-term): Rs 1,444.28
- Net profit: Rs 17,812.72
- Net to bank: Rs 98,145.72
The screen showed Rs 20,000 profit. Your bank actually received Rs 17,812.72 of that as profit — the remaining Rs 2,187.28 went to broker commission, SEBON, DP, and CGT.
Where NEPSE investors get CGT wrong
Most retail NEPSE investors do this math in a notebook or in their broker app, and three errors come up over and over — overstating profit by Rs 500 to Rs 5,000 per trade on a 100-share position:
- Forgetting fees are charged on both legs. Broker commission, SEBON regulatory fee, and the Rs 25 DP charge apply to the buy leg and the sell leg separately — so a round-trip trade incurs six fees, not three. Mental shortcuts that only count the sell leg systematically overestimate net profit.
- Confusing the 7.5% short-term rate with the 10% institutional rate.Individuals pay 7.5% if held ≤365 days, 5% if held >365 days. Companies and mutual funds pay 10% regardless of holding period. Trading through a private company changes the math.
- Applying CGT to gross profit instead of capital gain. CGT applies to (sell − buy − all six fees), not to (sell − buy). The fees are deductible from the capital-gain base before the tax is calculated.
This calculator handles all three correctly and shows the math step by step — including the SEBON commission slab that applies to your specific transaction value.
Who should use this NEPSE CGT calculator?
- Retail NEPSE investors — verify the net bank credit before you place a trade, especially on large round-trips where the slab tiers actually shift
- Day traders & swing traders — see whether a Rs 2 / share gain even covers the buy + sell fee stack before CGT
- Long-term investors — compare net profit at the 5% long-term rate vs the 7.5% short-term rate to time exits past the 365-day mark
- Brokers, CAs & tax consultants — quick sanity check on client contract notes, or use alongside our Nepal salary tax calculator and VAT calculator for full-portfolio tax planning
FAQ
What is the Capital Gains Tax rate on NEPSE shares?
For resident individual investors: 7.5% if shares are held for 365 days or less (short-term), 5% if held for more than 365 days (long-term). For resident institutional investors (companies, mutual funds): 10% flat, regardless of holding period. CGT only applies on a positive capital gain — losses do not generate a tax obligation.
How is the holding period counted for CGT?
The holding period is the number of days between the buy date (T+settlement) and the sell date. If the gap is 365 days or less, the trade is short-term and CGT is 7.5% (individuals). If the gap is more than 365 days, the trade is long-term and CGT drops to 5%. For institutional investors the holding period does not change the rate (10% flat).
How is broker commission calculated on NEPSE?
Per the SEBON Brokerage Commission Regulation (sebon.gov.np), commission rates are slabbed by transaction value: up to Rs 50,000 → 0.40%; Rs 50,001–5,00,000 → 0.37%; Rs 5,00,001–20,00,000 → 0.34%; Rs 20,00,001–1,00,00,000 → 0.30%; above Rs 1 crore → 0.27%. The minimum commission per transaction is Rs 10. Commission is charged on both the buy and the sell leg separately.
What other charges apply besides broker commission?
Two more deductions besides broker commission: (1) SEBON Regulatory Fee at 0.015% of transaction value, on both buy and sell legs; (2) CDSC Depository (DP) Charge of Rs 25 per transaction by CDS and Clearing Limited (cdscnepal.com), also on both legs. Plus, on the sell side, Capital Gains Tax is deducted at source by the broker before crediting your bank.
Is the CGT amount deducted automatically?
Yes. The broker deducts CGT at source from your sell-side proceeds and remits it to the Inland Revenue Department (ird.gov.np) on your behalf, just like TDS on salary. The amount you see credited to your bank is already net of CGT. You should still report your capital gains in your annual income tax return — the CGT deducted is a credit you can offset against your overall tax liability.
What if I sold at a loss?
No CGT applies on a loss. Capital losses on listed securities can be carried forward and set off against future capital gains under Section 36 of the Income Tax Act 2058 (published by the IRD at ird.gov.np) — but only against capital gains, not against business or salary income. Keep transaction records (broker contract notes, DP bills) for the carry-forward claim.
Are bonus shares and right shares handled differently?
Yes — and this calculator does NOT model them. For bonus shares, the IRD treats the cost base as the average of all holdings (existing + bonus) at the original purchase prices, weighted by quantity. For right shares, the cost base is the right-issue price you paid plus your share of original costs. Consult a CA for portfolio-level CGT calculations involving corporate actions.