New Financial Year 2026-27 Rule Changes LIVE: Jet Fuel, LPG, Income Tax Rules Updated — Big Impact on Salaries & Daily Expenses
As the New Financial Year 2026-27 (FY27) begins today—Wednesday, April 1, 2026—India witnesses a wave of major rule changes that will directly impact household budgets, take-home salaries, transportation costs, and compliance requirements.
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| New Financial Year 2026-27 Rule Changes (AI Generated) |
From the rollout of the new Income Tax Act, 2025, and revisions in salary components, to changes in PAN rules, updates in FASTag fee, and a steep rise in jet fuel and commercial LPG prices, many of these reforms take effect immediately.
Several banks, including HDFC Bank, are also revising ATM and UPI cash-withdrawal charges, further tightening the financial landscape as FY27 begins.
Below is the complete breakdown of all new rules implemented today and how they will affect your daily life.
Income Tax Act 2025 Comes Into Force: What Changes from Today?
One of the biggest updates is the official replacement of the six-decade-old Income Tax Act, 1961 with the new Income Tax Act, 2025. This marks the most significant reform in India’s direct tax system in recent decades.
Key Highlights of the New Income Tax Act 2025
- Simplified and modern language replaces outdated tax terminology.
- Assessment Year (AY) and Financial Year (FY) are now officially renamed as “Tax Year” to avoid confusion.
- Old exemptions and redundant clauses removed for clarity.
- Existing slab rates carry forward without change.
- Rules aligned with digital filing, e-verification, and automated assessments.
New Financial Year 2026-27 Rule Changes LIVE: Interest rate for Sukanya Samriddhi Scheme
Centre has kept interest rates unchanged for various small savings schemes. Deposits under the Sukanya Samriddhi Scheme will attract an interest rate of 8.2%. The rate on a three-year term deposit under this scheme also remains 7.1% for the current quarter.
The account may be opened by a guardian in the name of a girl child until she turns 10 years old, with a minimum deposit of ₹250 and a maximum of ₹1,50,000 in a financial year. The scheme qualifies for deduction under Section 80C of the Income Tax Act.
New Financial Year 2026-27 Rule Changes LIVE: Revised train ticket refund structure
Updated refund rules:
- If cancelled between 8 and 24 hours before departure → 50% refund.
- If cancelled between 24 and 72 hours → 25% deduction.
- If cancelled more than 72 hours before departure → maximum cancellation charge applies (refund depends on Indian Railways’ terms & conditions).
New Financial Year 2026-27 Rule Changes LIVE: Stricter train ticket cancellation rules
The Indian Railways will now provide zero refund if tickets are cancelled within 8 hours of departure. Earlier, this timeline was 4 hours.
New Financial Year 2026-27 Rule Changes LIVE: Lower daily withdrawal limits
Punjab National Bank has reduced daily debit card withdrawal limits to ₹50,000–₹75,000 for select cards.
Earlier limits of up to ₹1,00,000 per day have now been revised downward for several card categories.
New Financial Year 2026-27 Rule Changes LIVE: Changes in TDS forms
From 1 April 2026, Form 16 and Form 16A will be replaced by:
- Form 130 (replaces Form 16)
- Form 131 (replaces Form 16A)
This update aims to simplify compliance and streamline tax filing documentation.
New Financial Year 2026-27 Rule Changes LIVE: Higher tax rebate benefit
Under the new tax regime, individuals earning up to ₹12.75 lakh annually will pay zero tax.
This benefit comes from:
- Increased rebate under Section 87A → ₹60,000
- Standard deduction → ₹75,000
New Financial Year 2026-27 Rule Changes LIVE: New Income Tax Law
The Income Tax Act 2025 comes into effect today, replacing the earlier Income Tax Act 1961.
Key change: The confusing terms ‘Assessment Year (AY)’ and ‘Previous Year (PY)’ will be replaced with a single term → ‘Tax Year’.
The new law aims to simplify definitions, improve clarity, and modernize the tax code.
New Financial Year 2026-27 Rule Changes LIVE: New PAN card rules
From 1 April, applying for PAN using only Aadhaar will no longer be allowed.
Applicants must use category-specific forms:
- Form 93 → Individuals
- Form 94 → Companies
- Form 95 → Foreign individuals
- Form 96 → Foreign entities
PAN is mandatory for several high-value transactions including cash deposits of ₹10 lakh+ and vehicle purchases above ₹5 lakh. It is also required for tax filing and business registration.
Applications can be submitted through:
- Protean (formerly NSDL eGov)
- UTIITSL
- Income Tax Department e-filing portal
Higher tax-free limit on meal cards
The tax exemption on employer-provided meal cards has been increased to ₹200 per meal, up from ₹50 earlier.
The updated rules allow individuals who get meal coupons, meal vouchers, meal cards (Pluxee/Sodexo/Zaggle), or subsidised food from office cafeterias to claim tax deductions of up to ₹1 lakh annually, according to experts. This benefit covers food and non-alcoholic beverages provided by companies and is available under the old tax regime.
FASTag annual pass fee hike
NHAI has revised the FASTag annual pass fee for FY27 from today. The cost will increase by ₹75, raising the total from ₹3,000 to ₹3,075.
The new rate applies to non-commercial vehicles such as cars, vans and jeeps equipped with a valid FASTag, usable at around 1,150 fee plazas nationwide.
Bandhan Bank revises free ATM transactions
Bank has revised its free debit card ATM transaction limits beginning 1 April.
5 free financial transactions at Bandhan Bank ATMs; unlimited non-financial. Other bank ATMs: 3 free (metro) & 5 free (non-metro) per month.
HDFC Bank adds charge for UPI withdrawals at ATMs
UPI ATM withdrawals will now be treated as regular ATM withdrawals. After free limit, ₹23 + taxes apply.
Daily cash withdrawal limits for several debit card categories have been reduced.
Two-factor authentication mandate
All digital payments in India must comply with 2FA from 1 April 2026. Most platforms will continue using SMS-based OTP as the second factor.
Changes to TCS (2/2)
LRS tour package TCS flat 2% without threshold.
Education & medical LRS TCS reduced from 5% to 2%.
Changes to TCS (1/2)
Budget rationalises TCS for compliance ease.
Alcoholic drink TCS raised 1% → 2%; Overseas tour packages now uniform 2%.
Differential buyback tax implemented
From 1 April, buyback amounts become taxable as capital gains.
Promoters: corporate 22%, non-corporate 30%.
STT hike on futures & options
Futures STT: 0.02% → 0.05%
Options STT: 0.1% → 0.15%
Corporate vehicles to see higher tax
Tax on corporate-use vehicles: ₹8,000/month (<1 .6l="" month="">1.6L).
Corporate small loan limit increased
Tax-free corporate loan limit increased from ₹20,000 to ₹2 lakh.
Corporate loan taxation updated
Loans with zero or below-market interest now taxed based on SBI lending rate difference.
Transport allowance boosted
Transport allowance exemption raised to ₹25,000/month or 70% of allowance (old: ₹10,000/month).
Corporate gift card exemption increased
Gift cards/coupons exemption limit increased to ₹15,000/year.
Meal allowance exemption hiked
Corporate meal cards (Pluxee/Sodexo) now tax-free up to ₹200 per meal under old tax regime.
HRA expanded for 4 more cities
50% HRA exemption now includes Ahmedabad, Bengaluru, Hyderabad & Pune.
Corporate perks hiked
Children’s education allowance raised: ₹100 → ₹3,000/month.
Hostel allowance: ₹300 → ₹9,000/month.
Small Savings Scheme interest rates unchanged
Rates unchanged for all major schemes including PPF, NSC, Sukanya Samriddhi Yojana, KVP, Post Office deposits.
Sukanya Samriddhi Scheme interest rate
Interest continues at 8.2% for April-June 2026 quarter.
Minimum deposit: ₹250; maximum ₹1.5 lakh/year. Eligible for 80C deduction.
