India is set to experience a series of financial and regulatory modifications as the new fiscal year commences on April 1, 2026. The Income Tax Act 2025 will replace the current Income Tax Act 1961, introducing simpler terminology like “Tax Year” in place of the previous terms “Assessment Year” (AY) and “Previous Year” (PY). Individuals earning up to Rs 12 lakh annually will now be exempt from paying taxes due to an increased rebate under Section 87A.
Form 16 and Form 16A will be substituted with Form 130 and Form 131 from April 1, with revised issuance timelines aimed at enhancing compliance and clarity in tax filings. The Income Tax Department will mandate additional documents such as a Class 10 certificate or passport, alongside Aadhaar, for PAN applications, eliminating Aadhaar as the sole proof of date of birth.
Indian Railways has extended the ticket cancellation refund window to 8 hours before departure, up from the previous 4-hour limit. Refunds between 8 and 24 hours pre-departure will now be eligible for a 50% reimbursement. Domestic LPG cylinder prices may be adjusted to reflect geopolitical influences on oil marketing companies, potentially impacting fuel costs like PNG, CNG, and aviation turbine fuel, and consequently airfares and logistics fares.
HDFC Bank has incorporated UPI ATM withdrawals within the free transaction limit, with a subsequent charge of Rs 23 per transaction after exceeding five transactions. Bandhan Bank has introduced three free transactions for metro city customers and five for non-metro city customers, followed by charges of Rs 23 for extra transactions and Rs 25 for failed transactions due to insufficient balance. Punjab National Bank has reduced the debit card withdrawal limit to Rs 50,000 to 75,000 for specific cards.
