The tractor (Lu 2 Ta 1159) was heading to Tribeni from Thutibari of Maharajgunj district, India, by carrying the members of a funeral procession.
In the incident, Nisar Mahmed, 55, Surya Narayan Sunar, 50, Deban Muslim, 50, and another from Thuthibari died.
Six among them sustained critical injuries. All the injured people are undergoing treatment at a community hospital in Chaipatta, Nawalparasi.
The tractor plunged into the canal while it was giving side to over take to a bus coming from opposite direction, according to police.
As many as 40 persons had died in an accident in the same area eight months ago.
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Two die in road mishap in Nawalparasi
