How Much Tax Comes Out of Your Prize?

Winning a draw doesn't mean the full advertised amount lands in your account — like most windfall gains under Nepal's tax law, prize money from this program is taxed before it's paid out.

A flat 25% is withheld at source under the Income Tax Act's windfall gain provision, applied the same way whether you've won a daily prize or the fortnightly bumper prize — there's no separate rate for the bigger amount.

On paper that means roughly three-quarters of the advertised figure is what actually reaches a winner, though the exact number depends on the gross amount announced for that particular draw. If you want to work out the net figure for a specific prize tier, our windfall tax calculator does the arithmetic for you.

The deduction happens automatically as part of the official payout process — it isn't something a winner has to calculate or pay separately, and it's unrelated to any income tax return you might file later in the year.