How do you calculate profit on shares in Nepal?

Take the net amount you actually received on the sell side, after commission, SEBON fee, and DP charge, and subtract the total amount you actually paid on the buy side including its own charges. Apply capital gains tax to what is left if it is positive. Do not use the screen prices, because they exclude charges on both sides.

What is capital gains tax on shares in Nepal?

For a resident individual, 10% if you held the shares 365 days or less, and 7.5% if you held them longer. These rates are effective from FY 2083/84 onward and are a final tax. Resident entities pay 10% regardless of holding period and non-residents pay 25%.

Do I pay capital gains tax if I sell at a loss?

No. Capital gains tax applies to gains, so a sale at a loss attracts none. It is calculated on your profit after charges, not on the sale amount.

Why is my break-even price higher than my buy price?

Because charges land on both the buy and the sell. You already paid commission, SEBON fee, and DP charge to get in, and you will pay them again to get out. Selling at exactly your buy price leaves you short by both sets of charges.

Does holding for a year actually save tax?

For a resident individual it saves 2.5 percentage points of tax on the gain, 7.5% instead of 10%. On a Rs. 10,000 gain that is Rs. 250. It is real but small, and it is a bad reason on its own to hold a position you would otherwise exit.

How to Calculate Profit After Selling Shares in Nepal

Someone in a Viber group says they bought at 673 and sold at 750, so they made Rs. 77 per share. On 25 kitta that is Rs. 1,925.

They did not make Rs. 1,925. They made Rs. 1,567.44. The Rs. 357.56 difference is charges on both sides plus capital gains tax, and it is 18.6% of the move they thought they captured.

Screen-price arithmetic is the most common mistake in NEPSE profit talk. Here is how to do it properly, in the order the money actually moves.

Step 1: find what you really paid

Your cost is not the price you saw. It is the total your broker debited, divided by your quantity.

Buy 25 kitta at Rs. 673:

Item	Amount
Share amount (25 x 673)	Rs. 16,825.00
Broker commission	Rs. 60.57
SEBON fee	Rs. 2.52
DP charge	Rs. 25.00
Total paid	Rs. 16,913.09

Rs. 16,913.09 / 25 = Rs. 676.52 per share.

That Rs. 676.52 is your real cost basis. If you track Rs. 673 in your head, every profit number you calculate afterwards will be slightly too high. MeroShare reports this weighted figure as WACC on your holding, and that is the number to trust over your memory of the order screen.

Step 2: find what you really received

Sell the same 25 kitta at Rs. 750:

Item	Amount
Share amount (25 x 750)	Rs. 18,750.00
Broker commission	Rs. 67.50
SEBON fee	Rs. 2.81
DP charge	Rs. 25.00
Net received	Rs. 18,654.69

Note the commission went up, from Rs. 60.57 to Rs. 67.50. It is a percentage of a larger amount, so a profitable sale always costs more to execute than the buy did.

Step 3: subtract, then tax what is left

Profit before tax: Rs. 18,654.69 minus Rs. 16,913.09 = Rs. 1,741.60.

Held under 365 days, so capital gains tax is 10%: Rs. 174.16.

Net profit: Rs. 1,567.44. On a Rs. 16,913.09 outlay that is a 9.27% return.

Two things worth naming. Capital gains tax applies to the profit after charges, not to the sale amount, which is in your favour. And if the sale had been a loss there would be no tax at all, because there is no gain to tax.

The share calculator runs all three steps at once, including the break-even figure below, if you would rather not keep a spreadsheet.

Step 4: know your break-even before you need it

Break-even is the sell price at which you end up with exactly what you put in. Most people assume it is their buy price. It is not, because charges apply on both sides.

For the position above, break-even sits at Rs. 680.07, not Rs. 673. You need the price to rise about 1.05% just to get your money back.

This is worth internalising because of what it means for a stock that has "recovered." A share you bought at 673, which fell to 600 and has now climbed back to 673, is not back to even. Sell there and you are down Rs. 176.18 on the round trip. The chart looks like you broke even; your bank balance disagrees.

The framework

Four numbers, in this order, every time:

Effective cost per share = total debited / quantity. Not the screen price.
Net receivable = gross sale minus commission, SEBON fee, DP charge.
Profit before tax = net receivable minus total paid.
Net profit = profit before tax minus CGT, and only if step 3 is positive.

Once you have step 1 recorded for each holding, the rest takes a minute. The discipline that matters is recording it at purchase, while the bill is in front of you, rather than reconstructing it later from a price you half-remember.

For capital gains tax, the resident-individual rates from FY 2083/84 onward:

Seller and holding period	CGT rate
Resident individual, 365 days or less	10%
Resident individual, more than 365 days	7.5%
Resident entity, any period	10%
Non-resident	25%

Where this breaks

Multiple buy lots. If you built the position over several purchases, step 1 is a weighted average across all of them, and each lot paid its own commission and its own Rs. 25 DP charge. Five small buys means five DP charges baked into your cost basis. The Average mode on the calculator handles this; doing it by hand with a simple mean of the prices will understate your cost.

Partial sales. Sell 10 of your 25 and the buy-side DP charge does not split neatly, because it was a per-transaction fee on the full lot. Any allocation you choose is a convention. Your broker's contract note is what the tax position rests on.

The holding-period boundary. 365 days is the line, and it is counted on the actual dates, not on "about a year." If you are close to it, check the calendar before selling, because the difference is 2.5 percentage points of your gain. That said, do not hold a position you want out of purely to save Rs. 250 on a Rs. 10,000 gain.

Rates move. The commission slabs, SEBON fee, and CGT rates here are current as of Shrawan 2083. Sales before Shrawan 1, 2083 fall under the older 7.5% and 5% regime, which was not a final tax. If you are reconciling an older trade, use the rates that were in force on the sale date, not today's.

Bonus and rights shares. These change your cost basis in ways a straight buy does not, and the tax treatment of the acquisition differs. Do not run them through this arithmetic without checking how your cost basis was adjusted.

What to check next

Pull up one holding in MeroShare and compare its WACC to the price you remember paying. If they differ by more than a rupee or two, that gap is charges, and it has been quietly inflating every profit figure you have calculated for that position.

Then read NEPSE broker commission and SEBON charges explained for where each of those charges comes from and why small trades pay proportionally more.