From June 1, these financial changes may affect you
What's the story
A series of regulatory changes across taxation, banking, and clean energy sectors are set to come into effect in June. Taxpayers will have to meet the first advance tax deadline under the Income Tax Act, 2025, by June 15. Meanwhile, salaried employees will have to adjust to revised allowances. Digital finance will see enhanced security measures with verified UPI recipient names while traditional banking services may witness fee hikes.
Tax changes
First advance tax installment due on June 15
Taxpayers and investors will have to adjust to several changes as June begins. The most important date is June 15, which is the last day for individuals to pay their first advance tax installment for FY26-27. Those with an estimated net tax liability of over ₹10,000 will have to pay 15% of their advance tax by this date. This is the first advance tax cycle under the new Income Tax Act, 2025, and Income Tax Rules, 2026.
Exemption updates
Revised allowances for salaried individuals
Salaried individuals are also adjusting to revised exemptions under the old tax regime. The Children Education Allowance exemption has been raised from ₹100 to ₹3,000 per month per child. The hostel allowance exemption has also been increased to ₹9,000 per month. Major cities like Bengaluru, Pune, Hyderabad, and Ahmedabad have now been added to the 50% House Rent Allowance (HRA) exemption category.
Banking updates
Digital payments to get a major transparency boost
To tackle digital fraud, the National Payments Corporation of India (NPCI) is launching a major transparent payment update. Now, when scanning a QR code or entering a mobile number, UPI apps will show the recipient's verified bank-registered name on screen. This makes it harder for fraudsters to trick consumers. However, traditional banking may get slightly costlier with several commercial banks revising their transaction frameworks for cash withdrawals at ATMs.
Price adjustments
Oil marketing companies will revise LPG, CNG, PNG prices
As is the norm on the first of every month, oil marketing companies will revise and announce the prices of LPG, CNG, and PNG. After a sharp hike in commercial 19-kg cylinder rates last month, local markets are wary of further price increases. Meanwhile, the Ministry of Finance has opted for stability for conservative savers by keeping interest rates on major small savings schemes such as Public Provident Fund (PPF) at 7.1% unchanged for this quarter.
Regulatory changes
Changes in the regulatory landscape for high-value transactions
The regulatory landscape for high-value transactions and renewable infrastructure is also changing. Under the revised 2026 tax definitions, a Permanent Account Number (PAN) is no longer mandatory for standard daily cash deposits over ₹50,000. However, the government has clamped down on larger transactions: a PAN is now compulsory for property deals exceeding ₹45 lakh, gift deeds, and joint development agreements. Annual cash withdrawals exceeding ₹10 lakh will also trigger automated PAN reporting.