Key financial and regulatory changes to come into force from 1 April

A range of financial and regulatory changes will come into effect across India from 1 April 2026, with implications for taxation, banking services, fuel pricing and rail travel as the new fiscal year begins.

One of the most significant reforms is the introduction of the Income Tax Act, 2025, which will replace the decades-old Income Tax Act, 1961. The new framework aims to simplify compliance by introducing clearer terminology, including the use of “tax year” in place of the existing “assessment year” and “previous year”.

Under the revised tax regime, individuals earning up to Rs 12 lakh annually will not have to pay income tax, owing to an enhanced rebate under Section 87A. The change is expected to benefit a large segment of middle-income taxpayers.

Documentation related to tax filings will also see updates. Forms 16 and 16A will be replaced by new formats, Form 130 and Form 131, with revised timelines aimed at streamlining the filing process.

In a further change, Aadhaar alone will no longer be accepted as proof of date of birth for PAN applications. Applicants will need to furnish additional documents such as a Class 10 certificate or passport.

The banking sector will also introduce new rules affecting customers’ daily transactions. HDFC Bank will include UPI ATM withdrawals within the free transaction limit, after which charges will apply. Bandhan Bank has set limits on free transactions depending on location, while Punjab National Bank will revise withdrawal limits for select debit cards.

Changes are also expected in the transport sector. Indian Railways has revised its ticket cancellation policy, allowing passengers to cancel tickets up to eight hours before departure for a refund, compared with the earlier four-hour window. Cancellations made between eight and 24 hours before departure will be eligible for a partial refund.

Fuel prices may also be subject to revision in the coming weeks, with domestic LPG rates and other fuels such as CNG, PNG and aviation turbine fuel likely to be influenced by global crude oil trends and ongoing geopolitical tensions. Any increase could have a cascading effect on transport costs and airfares.

Together, these changes mark the start of a new financial year with a mix of policy adjustments that are expected to affect both individual finances and broader economic activity.

With IANS inputs