April 1,2026 Rule Changes: The new financial year kicks off on April 1,2026. With this new financial year,numerous rules will undergo changes. These changes will have a direct effect on our daily lives. From HRA to PAN cards and tax-related regulations,many aspects are set to be revised.
Income Tax Act 2025 is being implemented
The new Income Tax Act 2025 is being put into effect with the goal of streamlining tax regulations that have been in place for decades. This new legislation eliminates several redundant sections and simplifies others.
Now only tax year
The financial year and assessment year will now be referred to as the tax year. This adjustment aims to clear up any confusion for taxpayers.
ITR deadline
The deadline for salaried individuals (ITR-1 and ITR-2) is set for July 31 only. For non-audit cases (ITR-3 and ITR-4),the deadline has been extended to August 31.
Futures and options traders will have to spend more
A significant change has occurred in the Securities Transaction Tax (STT). F&O investors will now face a higher fee,as the STT has risen from 0.12 percent to 0.15 percent.
Strictness in HRA rules
The new regulations will still allow for HRA exemptions,but they will require additional documentation. Employees must now provide the landlord’s PAN card along with valid proof of rent payment.
Meal card limit increased
The tax-free limit for meal cards provided by employers has been raised from Rs 50 to Rs 200. This benefit will be accessible to employees under the old tax regime.
Gifts and vouchers can be taken up to Rs 15,000
The limit for corporate gift cards,vouchers,and coupons has been increased from Rs 5,000 to Rs 15,000,effective April 1,2026. This exemption will apply under both the old and new tax regimes.
Increase in education allowance limit
According to the new regulations,the education allowance limit has been raised from Rs 100 to Rs 3,000 per month,while the hostel allowance has increased from Rs 300 to Rs 9,000 per month.
Sovereign Gold Bonds
If someone buys Sovereign Gold Bonds from the secondary market,they will be subject to capital gains tax. If these bonds were purchased during issue,the exemption will continue.
Changes in PAN card rules
Now,there is going to be a major change in the rules for making PAN cards. Previously,PAN cards could only be made using an Aadhaar card. Individuals or organizations will now have to make PAN cards in their own category. If you deposit Rs 10 lakh or more in cash in a financial year,then PAN card will be required.
Accidental cases are now tax free
No TDS will be deducted on compensation received from the Motor Accident Claims Tribunal. It will now be completely tax-free.
