Finance Act, Not Finance Bill
The Finance Bill was the proposal. The gazetted Finance Act is the enacted law. Where a budget summary and the Act differ, this guide follows the Act.
Example: one budget summary described section 236K at 1.5%, while the gazetted Act sets it at 1.25%. The site uses the enacted 1.25% rate.
Key Income Tax Changes
| Topic | Enacted change |
|---|---|
| Salaried persons | Eight progressive slabs; 0% up to Rs. 600,000 and 35% above Rs. 7 million. |
| Property purchase | Section 236K: 1.25% of fair market value. |
| Property sale | Section 236C: 2.75% of gross consideration. |
| Deemed property income | Section 7E omitted. |
| Inherited property | Beneficiary cost basis set at fair market value when transferred to the beneficiary. |
| IT/ITeS exports | 0.25% concession for qualifying PSEB-registered exporters extended through Tax Year 2029; general qualifying rate remains 1%. |
| Social-media revenue | New section 154B: 5% WHT; minimum tax for residents and final tax for qualifying non-residents without a permanent establishment. |
| Ecommerce | Tax is adjustable above Rs. 200 million turnover; persons up to Rs. 200 million may opt out of final treatment when filing from Tax Year 2027. |
| Foreign card payments | Advance tax reduced from 5% to 0.5%. |
| Super tax | Generally removed up to Rs. 500 million income and set at 8% above that level, with stated sector exceptions. |
Salary Tax Slabs 2026-27
| Annual taxable salary | Tax formula |
|---|---|
| Up to Rs. 600,000 | 0% |
| Rs. 600,001 to Rs. 1,200,000 | 1% above Rs. 600,000 |
| Rs. 1,200,001 to Rs. 2,200,000 | Rs. 6,000 + 11% above Rs. 1,200,000 |
| Rs. 2,200,001 to Rs. 3,200,000 | Rs. 116,000 + 20% above Rs. 2,200,000 |
| Rs. 3,200,001 to Rs. 4,100,000 | Rs. 316,000 + 25% above Rs. 3,200,000 |
| Rs. 4,100,001 to Rs. 5,600,000 | Rs. 541,000 + 29% above Rs. 4,100,000 |
| Rs. 5,600,001 to Rs. 7,000,000 | Rs. 976,000 + 32% above Rs. 5,600,000 |
| Above Rs. 7,000,000 | Rs. 1,424,000 + 35% above Rs. 7,000,000 |
Business, Withholding, and Compliance
- Independent professional services are listed at 15% withholding.
- Specified services are 7%, electronic and print advertising is 1.5%, terminal and port services by companies are 12%, and other services are 14% under the amended schedule.
- The reduced section 113 minimum-tax rate for specified distributors and wholesalers is 0.5%, subject to both relevant ATL conditions.
- A 10% tax credit applies to qualifying investment in required FBR electronic integration, subject to prescribed conditions.
- Companies must file financial statements in electronically readable form for Tax Year 2026 onward.
- Banks and EMIs must report accounts with deposits or withdrawals above Rs. 100 million in a six-month reporting period for algorithmic matching.
Sales Tax, Customs, FED, and Vehicles
- Sales-tax changes expand electronic invoicing, faceless proceedings, production monitoring, and penalties for false or unmatched invoices.
- Retailers above Rs. 200 million turnover can fall within the tier-1 framework where the statutory conditions apply.
- Specified exemptions include magazines, contraceptives, female sanitary pads/tampons, and selected EV and strategic imports under the enacted schedules.
- Customs duty, additional customs duty, and regulatory duty were rationalized across many PCT lines. Exact import treatment remains code-specific.
- ICT private-vehicle tax is Rs. 20,000 lifetime up to 1000cc, 0.25% of invoice value per year from 1001cc to 2000cc, and 0.35% above 2000cc.
- Federal excise changes include new or revised treatment for specified luxury vehicles, e-liquids, lubricating oils, solvents, and international premium travel.
Official Sources
This summary was checked against the gazetted Finance Act 2026, Finance Bill 2026, Notes on Clauses, budget Salient Features, and the supplied First and Fifth Schedule documents.