2026 income tax law change: 8 changes that may affect you

Key points

• Salary only (full APITAPITAdvance Personal Income TaxTax your employer deducts from your salary every month. See all tax words Close deducted) + bank interest below Rs. 5,000 → no income tax returnReturnIncome tax returnYearly form to declare your income. Due 30 November. See all tax words Close needed.
• The SET form was removed from 1 April 2026.
• Capital gains tax (CGTCGTCapital gains taxTax on profit when you sell land, shares etc. 15% for individuals from 3 June 2026. See all tax words Close) for individuals went up from 10% to 15% (from 3 June 2026).
• Your TINTINTaxpayer Identification NumberYour tax ID number from IRD. Having one does not mean you must pay tax. See all tax words Close is no longer secret. Officials must check your TIN before bank accounts, vehicle and land work.
• Life insurance money (death, maturity or surrender) is not counted as income (from 1 April 2025).
• Withholding tax (WHTAIT / WHTAdvance Income Tax / Withholding TaxTax cut at source by a bank or payer, e.g. 10% on interest. See all tax words Close) now covers many more jobs, including photographers, beauticians, electricians and cooks. Payers must give the WHT certificate free.
• If you go abroad for a job on a contract of at least 1 year, you are treated as non-resident for that period (from 1 April 2025).
• If IRD sends a written notice and you don't fix the problem within 30 days (for example a missing return or TIN), it can become a court case, with a maximum fine of Rs. 400,000.

What you should do

1. 1Note the changes that apply to you.
2. 2Planning to sell land or shares? Check the new 15% CGT with our calculator.
3. 3No TIN yet? Get it now.