New tax regime kicks in from April 1: What know
Big tax changes are coming for salaried employees in India from April 1, 2026.
The new Income-tax Act and Rules will cut the number of forms nearly in half, down to 190, so filing should be way less of a headache.
But if you are in the middle-income bracket, experts say sticking with the old tax regime might still save you more money.
Key updates to note
Some key updates:
Electronically granted approvals in assessment, reassessment or recomputation proceedings dating back to April 1, 2021 cannot be invalidated on grounds such as inadequate reasoning, authentication defects, or absence of a digital signature,
and PAN quoting thresholds have been raised: Cash deposits or withdrawals aggregating to ₹10 lakh or more in a financial year will require quoting PAN, and purchase, sale, gift or joint-development agreements for immovable property with transaction value exceeding ₹20 lakh will require quoting PAN.
There is also a new process to make TDS (tax deducted at source) easier, plus extra paperwork if you are claiming House Rent Allowance (HRA).
While these changes may take some getting used to, they aim to make taxes simpler and boost transparency overall.