Key financial changes coming into effect on April 1
What's the story
As we gear up for the new financial year starting April 1, 2026, a host of important changes are set to take effect. These changes will affect banking, fuel prices, taxation and travel. The new Income Tax Act 2025 will replace the existing Income Tax Act of 1961. It aims to simplify terminologies by replacing 'Assessment Year' (AY) and 'Previous Year' (PY) with a single term - 'Tax Year.'
Revisions
New tax regime to come into effect
The new tax regime will provide zero tax for individuals earning up to ₹12 lakh per year, owing to an increased rebate under Section 87A. From April 1, Form 16 and Form 16A will be replaced by Form 130 and Form 131 respectively. The issuance timelines will also be amended for smoother compliance and clarity in tax filings.
Regulations
Changes in PAN card application process
The Income Tax Department has tightened PAN card application rules by not accepting Aadhaar alone as proof of date of birth. Documents like Class X certificate and passport are now mandatory. Further, domestic LPG cylinder prices could be revised on April 1 due to geopolitical challenges arising from the ongoing US-Israel war with Iran.
Adjustments
Fuel prices will be revised
Fuel prices, including PNG, CNG, and aviation turbine fuel (ATF), will be revised from April 1. This will directly affect airfares and daily transportation costs across the country. Starting April 1, banks like HDFC Bank will include UPI ATM withdrawals in their free limit. Beyond five transactions, a charge of ₹23 per transaction will be levied. Bandhan Bank customers can avail three free transactions in metro cities and five in non-metro cities with additional charges applicable thereafter.
Restrictions
Indian Railways has also revised its cancellation policy
Punjab National Bank has announced a reduction in debit card withdrawal limit for select cards to ₹50,000-75,000. Earlier, some cards allowed withdrawals of up to ₹100,000 but now these limits have been reduced. Indian Railways has also revised its cancellation policy with zero refund if tickets are canceled within eight hours of departure. Earlier this timeline was four hours.