April 1 Financial Rule Change LIVE: Major ITR, PAN, Salary & Banking Rules Set to Shift Under New Income Tax Act 2025
April 1 Financial Rule Changes LIVE Updates: New Fiscal Year Brings Big Shifts for Taxpayers, Salaried Employees & Bank Users
As the new financial year FY 2026-27 (FY27) begins on 1 April 2026, India is entering a major economic transition. From ITR filing updates to PAN rules, salary structure reforms, and FASTag fee hikes, several important policies will come into effect today. These reforms are expected to directly affect household budgets, take-home pay, banking behaviour, and compliance requirements.
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One of the biggest headlines of the day is the replacement of India’s six-decade-old tax law, the Income Tax Act, 1961, with the new Income Tax Act, 2025. This marks a generational shift in India’s tax administration.
This LIVE coverage brings you a detailed look at everything changing from April 1, 2026, and how these changes will impact your daily life.
New Income Tax Act, 2025: What Changes for You from April 1
The Income Tax Act, 2025, officially replaces the older tax law from today. This overhaul aims to simplify tax filing, reduce loopholes, and modernize compliance procedures.
Key Features of the New Tax Act
- Higher focus on digital compliance
- Simplified categories for personal income
- Stricter norms for financial disclosure
- Revised exemptions and deduction structure
- More clarity on taxability of digital assets
April 1 Financial Rule Change LIVE: What are the details and different parts of Form 130?
Form 130 is divided into three parts:
- Part A: Details of the employer or bank and the employee/senior citizen
- Part B: Summary of income paid, TDS deducted and other key tax details
- Part C: Complete computation of taxable income for the financial year
Part C further includes:
- Annexure I: For salaried employees (salary, exemptions, deductions, tax, etc.)
- Annexure II: For specified senior citizens (pension and interest income details)
April 1 Financial Rule Change LIVE: Form 130 to replace Form 16
Starting 1 April 2026, major changes under India’s new tax framework will come into effect. Form 130 will officially replace Form 16 as the primary TDS certificate for both salaried employees and senior citizens.
April 1 Financial Rule Change LIVE: Old tax regime vs new tax regime?
The new financial year FY26-27 begins on 1 April (tomorrow), and taxpayers may be confused whether amendments to the Income-Tax Act and updates to deductions under the old tax regime will impact their income tax returns this year.
Mint breaks down the key factors that taxpayers should consider when choosing between the new and old income tax regimes.
April 1 Financial Rule Change LIVE: Income tax slabs under new regime
Up to ₹4 lakh income is taxed at 0%
Up to ₹8 lakh income is taxed at 5%
Up to ₹12 lakh income is taxed at 10%
Up to ₹16 lakh income is taxed at 15%
Up to ₹20 lakh income is taxed at 20%
Up to ₹24 lakh income is taxed at 25%
Income above ₹24 lakh is taxed at 30%
April 1 Financial Rule Change LIVE: Income tax slabs under old regime
Up to ₹2.5 lakh income is taxed at 0%
Up to ₹5 lakh income is taxed at 5%
Up to ₹10 lakh income is taxed at 20%
Income above ₹10 lakh is taxed at 30%
April 1 Financial Rule Change LIVE: Will changes to I-T Act impact ITR this year?
No, changes in the new Income-Tax Act will not impact tax filings for FY26 but will come into effect when filing ITR in the financial year 2026-27, i.e., in June 2027.
April 1 Financial Rule Change LIVE: Aimed at helping the middle class
The implementation of lower TCS on overseas tour packages and remittances under the Liberalised Remittance Scheme (LRS) for medical and education purposes is aimed at helping the middle class.
TCS on overseas tour packages has been slashed to 2% from 20%.
On remittance for medical and education purposes, the rate will be 2%, against 5% currently.
April 1 Financial Rule Change LIVE: What is new STT rate on F&O trade
STT on futures contracts will rise to 0.05% from 0.02%, while STT on options premiums and exercise of options will be increased to 0.15% from 0.1% and 0.125%, respectively.
The higher STT is aimed at curbing speculative bets in the F&O segment of equity markets and protecting small investors from heavy losses in speculative trades.
April 1 Financial Rule Change LIVE: Higher STT on F&O trade
The new income tax law and multiple budgetary provisions, including a higher Securities Transaction Tax (STT) on F&O trade, will come into effect from April 1.
Additionally, lower TCS on overseas tour packages and reduced TCS for LRS remittances related to medical and education expenses will also be implemented starting tomorrow.
April 1 Financial Rule Change LIVE: Key FAQs on Form 130 answered
Starting 1 April 2026, Form 130 will become the new standard format for TDS reporting and submission for salary and certain pension incomes.
The form aims to streamline tax filing, improve standardisation, and reduce discrepancies in deductions. Here are key FAQs taxpayers should know before the transition takes effect.
April 1 Financial Rule Change LIVE: FASTag pass prices change tomorrow
The FASTag annual pass can be recharged via the Rajmarg Yatra App or the official NHAI website.
After the one-time fee is paid, activation occurs within two hours on the user's existing FASTag.
With new fees applicable from April 1, frequent commuters can still recharge today at the old price before the revision kicks in.
April 1 Financial Rule Change LIVE: What are the new FASTag charges?
Under the revised structure, FASTag annual pass rates will rise by ₹75 — increasing from the current ₹3,000 to ₹3,075 beginning April 1.
The updated rates specifically apply to non-commercial vehicles equipped with a valid FASTag.
The annual pass remains usable at around 1,150 fee plazas across National Highways and National Expressways nationwide.
April 1 Financial Rule Change LIVE: Meal card benefit for salaried employees
Salaried individuals will benefit from the revised tax-free meal voucher limits starting April 1.
The tax-free limit for meal vouchers (like Pluxee/Sodexo) will increase from ₹50 to ₹200 per meal — a 4x jump.
As noted by CA Kaushik, employees receiving two meals per day can now enjoy tax-free benefits exceeding ₹1.05 lakh annually.
April 1 Financial Rule Change LIVE: Added benefits to save taxes
CA Kaushik clarified that there are added benefits to help save taxes.
“The tax-free limit for Interest-Free Loans from your employer is jumping 10x from ₹20,000 to ₹2 lakh. This is a huge win for employees taking small personal or emergency advances, as the interest benefit won’t be added to your salary unless you cross that limit,” he wrote.
April 1 Financial Rule Change LIVE: More income tax outgo on company car benefit
The monthly valuation of company car perquisite has been increased in the new Income Tax Rules, 2026.
If your company provides a car with engine capacity up to 1.6L, taxable value rises from ₹1,800 to ₹5,000 when used for both official and personal purposes.
April 1 Financial Rule Change LIVE: Interest rates unchanged
The Centre has kept interest rates unchanged for the upcoming quarter of FY 2026-27.
The last interest rate revision happened in Q4 2023-24.
April 1 Financial Rule Change LIVE: Interest rate for monthly income scheme
MIS will earn 7.4% for the April–June quarter. Limit: ₹9 lakh (single), ₹15 lakh (joint).
April 1 Financial Rule Change LIVE: Interest rate for NSC
The NSC interest rate stays at 7.7% for Q1 FY 2026-27. No maximum deposit limit.
Deposits qualify for deduction under Section 80C.
April 1 Financial Rule Change LIVE: Interest rate for Kisan Vikas Patra
KVP will earn 7.5% interest, with maturity in 115 months. No max deposit limit.
April 1 Financial Rule Change LIVE: Interest rate for post office savings deposit
Interest rate unchanged at 4%. Minimum deposit: ₹500. No maximum limit.
Interest up to ₹10,000 eligible for Section 80TTA deduction.
April 1 Financial Rule Change LIVE: Interest rate for Public Provident Fund
PPF interest rate retained at 7.1%. Maximum investment: ₹1.5 lakh per year.
Eligible for Section 80C deduction.
April 1 Financial Rule Change LIVE: Interest rate for Sukanya Samriddhi Scheme
SSY interest rate stays at 8.2%. Three-year term deposit rate remains at 7.1%.
Min deposit: ₹250; max: ₹1.5 lakh per year. Eligible for Section 80C.
April 1 Financial Rule Change LIVE: No change in small savings schemes interest rate
The Centre has kept interest rates unchanged for the eighth straight quarter.
This includes PPF, NSC, SSY, KVP, and post office deposits.
April 1 Financial Rule Change LIVE: When does PAN become inoperative?
PAN becomes inoperative if not linked with Aadhaar within the deadline.
No refunds will be issued during the inoperative period.
PAN becomes operative again after Aadhaar linking and fee payment.
April 1 Financial Rule Change LIVE: Structural changes to I-T rules
The number of tax rules reduced from 399 to 190.
Tax forms reduced from 511 to 333.
April 1 Financial Rule Change LIVE: Employees can work for 180 days under new rule
The requirement for minimum working days for leave eligibility has been reduced from 240 to 180 days.
April 1 Financial Rule Change LIVE: Will the new salary structure reduce take-home pay?
Take-home salary may reduce as PF contributions of employees and employers will increase under new labour codes.
PF must be 50% of gross pay.
April 1 Financial Rule Change LIVE: Where can you use FASTag?
FASTag can be used at around 1,150 toll plazas on National Highways and Expressways.
New rates apply to non-commercial vehicles with valid FASTag.
April 1 Financial Rule Change LIVE: FASTag annual pass fee hike
The annual pass fee increases from ₹3,000 to ₹3,075 from 1 April.
Recharge can be done via Rajmarg Yatra App or NHAI website.
April 1 Financial Rule Change LIVE: Which tax regime will be default?
The new tax regime remains default. Taxpayers with high investments may opt for the old regime.
April 1 Financial Rule Change LIVE: TCS changes
- Alcoholic beverages: 1% → 2%
- Tendu leaves: 5% → 2%
- Scrap sale: 1% → 2%
- Minerals (coal/lignite/iron ore): 1% → 2%
- LRS overseas tour package: Flat 2%
- LRS education/medical: 5% → 2%
April 1 Financial Rule Change LIVE: Revised ITR deadline changes
Revised return filing deadline extended from 31 December to 31 March.
Additional fee applies if filed after 31 December.
April 1 Financial Rule Change LIVE: ITR filing due date extended
ITR-3 and ITR-4 deadline extended to 31 August. Applies from FY 2025-26.
ITR-1 and ITR-2 deadline remains 31 July.
April 1 Financial Rule Change LIVE: Will tax slabs change?
No change in income tax slabs from 1 April 2026 under both regimes.
April 1 Financial Rule Change LIVE: Documents needed for PAN applications
From April 1, PAN applicants must submit additional documents like birth certificate, voter ID, passport, driving license, matric certificate, or magistrate affidavit.
April 1 Financial Rule Change LIVE: Changes in PAN application rules
- Additional documents required from April 1.
- PAN name will match Aadhaar; names removed from PAN card.
- New PAN forms to be introduced; old forms invalid after April 1.
April 1 Financial Rule Change LIVE: Changes for salaried employees
From April 1, 2026, corporate perks will undergo major changes as per Income Tax Rules, 2026 announced in March.
Many changes are coming...
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