Every year, the federal budget brings new changes—sometimes relief, sometimes tighter rules. The proposed Budget 2025–26 includes some major updates that impact salaried individuals, freelancers, digital earners, businesses, and investors.
Here’s an easy-to-understand comparison of what changed between last year’s budget and the new proposals.
Tax Relief for Salaried Individuals
| Annual Income | 2024–25 Tax | 2025–26 Proposed Tax | Difference |
| Rs. 1,200,000 | Rs. 30,000 | Rs. 6,000 ✅ | Rs. 24,000 saved |
| Rs. 2,400,000 | Rs. 230,000 | Rs. 162,000 ✅ | Rs. 68,000 saved |
| Rs. 4,800,000 | Rs. 945,000 | Rs. 861,000 ✅ | Rs. 84,000 saved |
Bottom line: If your monthly salary is between Rs. 100k and Rs. 400k, you’ll pay significantly less tax under the new budget.
Freelancers & Digital Earners – Big Shift!
| Category | Budget 2024–25 | Budget 2025–26 |
| Tax filing if no NTN? | ❌ Not required | ✅ Now mandatory (if income exceeds threshold) |
| Tax on digital income? | ❌ Unclear | ✅ Introduced under Section 6A |
📌 Translation: If you earn online (as a freelancer or seller), the government now expects you to file returns and pay taxes.
“Digital income = Digital accountability”
Super Tax & Surcharge Changes
| Type | 2024–25 | 2025–26 |
| Super Tax (high income) | Higher | 🔻 Slightly reduced (0.5%) |
| Surcharge on income over Rs. 10M | 10% | 🔻 Reduced to 9% |
Rent & Housing Tax Changes
• Fair Rent Rule: Commercial properties must now have a minimum annual rent equal to 4% of market value unless proven otherwise.
• Housing Loan Credit: Tax credit on interest remains available for homes/flats within size limits if loan is from a formal lender.
Sales Tax – What’s Getting Pricier?
| Item | 2024–25 | 2025–26 |
| Imported Solar Panels | ❌ Tax-free | ✅ 18% sales tax proposed |
| Hybrid Vehicles | ✅ Lower tax | ❌ Now taxed at 18% like petrol cars |
| E-commerce Collection | ❌ Limited to platforms | ✅ Now includes couriers & banks |
| Small Cars (≤850cc) | ✅ 12.5% tax | ❌ Will now be taxed at 18% |
FATA/PATA Relief Continues
• Income tax and withholding tax exemptions extended to Tax Year 2026.
• Residential, commercial, and industrial users in those areas are now exempt from paying electricity bills until June 30, 2026.
Bank Accounts Can Be Blocked
Blocking Bank Accounts: Section 14AC gives tax authorities the authority to block bank accounts belonging to people who are not tax system registered.
Customs & Trade Modernization
• New intelligence-based customs system launched
• Faster pre-arrival clearance at ports
• Carbon levy introduced:
o Rs. 2.5/litre (FY 2025–26)
o Rs. 5/litre (FY 2026–27)
✅ Summary – Who Wins & What to Watch
| Group | 2024–25 | 2025–26 |
| Salaried Individuals | High tax burden | ✅ Big relief |
| Freelancers | No clear rule | ✅ Mandatory compliance |
| E-Commerce | Limited scope | ✅ Expanded responsibility |
| Hybrid Car Buyers | Low tax | ❌ Higher tax now |
| High Earners | Higher surcharge | 🔻 Slight reduction |
What Should You Do?
Salaried → Celebrate! Taxes will likely be lower for you. You now have to start filing tax returns if you work as a freelancer. You need to review your compliance obligations immediately if you run a business or an online store.
Corptax Solutions: Your Trusted Tax Consultant
We keep individuals, freelancers, and businesses stress-free and compliant. From tax planning to filing returns to understanding new regulations, we can assist you.
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