29/05/2026
Major Income Tax Changes – Key Highlights
✅ Tax Slab Revised
(Couple concept removed)
• Up to 10 Lakhs – 1% (except SSF contributors)
• 10–15 Lakhs – 10%
• 15–25 Lakhs – 20%
• 25–40 Lakhs – 27%
• Above 40 Lakhs – 29%
✅ Donation deduction to exempt entities increased up to NPR 3 Lakhs.
✅ Cash expense payment limit reduced to NPR 25,000.
✅ No transfer pricing documentation required for taxpayers adopting Safe Harbour Rule.
✅ Section 57 relief:
Change in control due to death or change in holding entity will not attract Section 57.
✅ Banks & Financial Institutions also affected due to removal of Section 47(ka).
✅ Department may mandate specific billing systems beyond CBS integration.
✅ No TDS on retirement fund payments.
(Clarification on contributory & non-contributory funds resolved.)
📈 Capital Gain Tax (CGT) Updates
🔹 Shares:
• Holding > 365 days → 7.5%
• Holding < 365 days → 10%
(Final Tax)
🔹 Land & Building:
• Holding > 5 years → 7.5%
• Holding < 5 years → 10%
• Government compulsory acquisition → 2.5%
🚕 Ride-sharing business:
• VAT – 5%
• TDS – 1%
🧾 Full audit assessment period reduced to 3 years only.
