New Income Tax Act kicks in April 1; salary, LPG prices, PAN norms and ticket rules revised | Check details

A wide range of financial and regulatory changes will come into effect from April 1, 2026, marking the beginning of the new financial year and significantly impacting everyday life. Among the most notable reforms is the implementation of the new Income Tax Act, 2025, replacing the decades-old 1961 law, alongside changes in ITR filing deadlines, PAN norms, LPG pricing, banking rules, and railway ticket cancellations.

The new tax framework aims to simplify compliance by reducing the number of rules and forms while introducing revised reporting standards. The deadline for filing ITR-3 and ITR-4 for non-audit taxpayers has been extended to August 31. Structural changes also include new tax form names and stricter PAN-Aadhaar linkage rules, with PAN becoming inoperative if not linked. Additionally, PAN requirements are being expanded across various financial transactions, including insurance and high-value dealings.

Salaried individuals are likely to see a direct impact on their take-home income due to the proposed implementation of new labour codes. With at least 50% of salary mandated as basic pay, provident fund contributions will increase, reducing in-hand earnings. At the same time, certain benefits such as meal vouchers, interest-free loans, and gratuity provisions have been enhanced, while corporate perks like company cars may attract higher taxation.

Banking and digital transactions will also undergo changes, including revised ATM withdrawal limits and charges. Some banks will impose fees on UPI-based cash withdrawals at ATMs beyond free limits. Meanwhile, Indian Railways has tightened ticket cancellation norms, with zero refunds allowed if tickets are cancelled within eight hours of departure. LPG cylinder prices are also expected to be revised amid supply concerns, adding to household cost pressures.

Other changes include an increase in FASTag annual pass fees, revised HRA exemption rules with more cities added to the metro category, and relaxed PAN requirements for certain transactions such as property and hotel payments. Overall, the changes aim to balance ease of compliance with tighter monitoring, but are expected to have a noticeable impact on household finances and spending patterns.