New Financial Year 2026-27 Rule Changes LIVE: Jet fuel, commercial LPG prices revised; income tax rules updated

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 the Sukanya Samriddhi Scheme also remains at 7.1% in the current quarter.

The account may be opened by one of the guardians in the name of a girl child till she attains the age of 10 years with minimum deposit of ₹250 and maximum ₹1,50,000- in a financial year. It qualifies for deduction under Section 80C of Income-Tax Act.

• 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, not a full refund. The refund in such cases depends on Indian Railways’ terms and conditions, which are subject to change.

The Indian Railways will now permit zero refund if tickets are cancelled within 8 hours of departure. Earlier, this timeline was 4 hours.

Punjab National Bank has decided to reduce the debit card withdrawal limit to ₹50,000 to 75,000 for select cards. Several cards that earlier had withdrawals of up to ₹100,000 will now have reduced limits.

From 1 April 2026, Form 16 and Form 16A will be replaced by Form 130 and Form 131, respectively. The issuance timelines will be amended to facilitate smoother compliance and provide clarity in tax filings.

Under the new tax regime, individuals earning up to ₹12.75 lakh annually will pay zero tax. This is due to an increased rebate under Section 87A ( ₹60,000) and standard deduction of ₹75,000.

The Income Tax Act 2025 will come into effect, replacing the Income Tax Act 1961. The new act will simplify the terminology and replace the slightly confusing ‘Assessment Year’ (AY) and ‘Previous Year’ (PY) with a single ‘Tax Year’. Along with this, there are a host of changes that will make the code more meaningful.

From 1 April, applying for a PAN using only Aadhaar will no longer be permitted. Applicants will be required to use category-specific forms — Form 93 for individuals, Form 94 for companies, Form 95 for foreign individuals, and Form 96 for foreign entities to make an application for PAN.

This change is important because PAN is compulsory for several high-value transactions, including cash deposits of ₹10 lakh or more in a financial year, purchase of vehicles exceeding ₹5 lakh, among others. It is also a key document for filing taxes and business registration.

Applicants can apply for a new PAN through the portals of Protean (formerly NSDL eGov), UTI Infrastructure Technology and Services Limited (UTIITSL), or via the Income Tax Department’s e-filing portal.

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.

NHAI has revised the FASTag annual pass fee for FY27 from today. Under the revised fee structure, the cost will increase by ₹75, bringing the total from the current ₹3,000 to ₹3,075 from 1 April 2026.

The new rate applies specifically to non-commercial vehicles such as cars, vans and jeeps equipped with a valid FASTag. The FASTag annual pass can be used at approximately 1,150 fee plazas on National Highways and National Expressways nationwide.

Bandhan Bank has announced revisions to the number of free transactions at ATMs using debit cards linked to the lender's account. These changes will also come into effect on 1 April.

The number of free monthly transactions at Bandhan Bank ATMs will be 5 for financial transactions and unlimited free transactions for non-financial ones. Meanwhile, for other bank ATMs, the number of free transactions per month (both financial and non-financial combined) will be three in metro cities, and five in non-metros.

HDFC Bank will treat UPI withdrawals at ATMs as regular ATM withdrawals when calculating the monthly free transaction limit. Once the free limit is exhausted, customers will be charged ₹23 plus applicable taxes per transaction.

Currently, savings and salary account holders get five free cash withdrawals at HDFC Bank ATMs. At other bank ATMs, customers are allowed three free cash withdrawals in metro cities and five in non-metro cities.

For Platinum, Gold and Business cards, the daily cash withdrawal limit has been cut from ₹1,00,000 to ₹50,000. Meanwhile, for Select and Signature debit cards, the withdrawal limit has been reduced to ₹75,000 from ₹1.5 lakh.

Starting 1 April 2026, all digital payment transactions in India are required to meet the norms of two-factor authentication (2FA), as per the Reserve Bank of India’s 2025 directions.

While no specific factor has been mandated for authentication, the digital payment ecosystem has primarily adopted SMS-based One Time Password (OTP) as an additional factor. The rule applies to all entities in the payment ecosystem, including banks and non-bank players.

• TCS rates on remittance under Liberalised Remittance Scheme (LRS) for overseas tour package have been reduced to a single flat rate of 2% without threshold from the existing dual rate of 5% and 20%.
• TCS rate for remittance under LRS for education and medical treatment has been reduced from 5% to 2%.

The Budget rationalised Tax Collected at Source (TCS) to ease compliance, reduce refund delays, and address confusion among taxpayers, with effect from April.

• TCS rates on alcoholic drinks is increased from 1% to 2%.
• TCS rate on overseas tour packages has been reduced from the current 5% and 20% to 2%.

And any amount received from the buyback of shares will be taxed as capital gains from 1 April. Further, promoter shareholders will have to pay a “differential buyback tax” with an effective rate of 22% for corporate promoters and 30% for non-corporate promoters.

The Centre has hiked Securities Transaction Tax (STT) for the equity derivatives segment that will impact futures and options (F&O) traders. This tax is levied on every purchase and sale of securities, such as equity shares, futures and options on recognised stock exchanges.

STT on futures will be increased to 0.05% from 0.02%, and on options transactions will be raised to 0.15% from 0.1%, from 1 April.

There is an increase in taxes for the use of corporate vehicles for work and personal activities. Tax of ₹8,000/month will be applicable on cars with engines up to 1.6 litre; and ₹10,000/month for bigger vehicles under both Old and New Tax regimes.

Corporate loans less than ₹2 lakh and those taken for medical emergencies remain tax-free. This is increased from previous small loan limit of ₹20,000.

Further, corporate loans with no interest or interest rates below the market rate will be taxed, based on the difference between the State Bank of India's lending rate and the actual rate charged, subject to certain exceptions.

The exemption for the allowance granted to employees working in any transport system has been enhanced from ₹10,000 per month or 70% of the allowance, whichever is lower, to ₹25,000 per month or 70% of the allowance, whichever is lower.

Exemption for corporate gift cards, gift certificates or coupons has been increased up to ₹15,000 each year under the Old Tax regime.

Exemption limit for free food and non-alcoholic beverages provided by an employer to an employee (i.e. corporate meal cards such as Pluxee and Sodexo) has been increased to tax-free status up to ₹200 per meal, under the Old Tax regime, from the previous ₹50 per meal limit.

House Rent Allowance (HRA) limit has been expanded to include four additional cities — Ahmedabad, Bengaluru, Hyderabad and Pune, for 50% exemption from previous 40% for the tax computation under the old regime. The list already included Chennai, Delhi, Kolkata and Mumbai.

The exemption for children's education allowance has increased from ₹100 per month to ₹3,000 per month, per child.

Hostel Expenditure Allowance has also been raised from ₹300 per month to ₹9,000 per month, per child.

The central government has kept interest rates unchanged for small savings schemes for the eighth straight quarter, beginning 1 April 2026.

This includes the public provident fund (PPF), national savings certificate (NSC), Sukanya Samriddhi Scheme, Kisan Vikas Patra and post deposits.

Deposits under the Sukanya Samriddhi Scheme will attract an interest rate of 8.2%. The account may be opened by one of the guardians in the name of a girl child till she attains the age of 10 years with minimum deposit of ₹250 and maximum ₹1,50,000 in a financial year.

The rate on a three-year term deposit also remains at 7.1% in the current quarter (April-June 2026).

It qualifies for deduction under Section 80C of Income-Tax Act.

Interest rates for the popular Public Provident Fund (PPF) have been retained at 7.1%. The maximum which one can invest is ₹1.5 lakh and the deposit is eligible for deduction under Section 80C of the I-T Act.

Previously the labour laws required employees to have worked for a minimum of 240 working days in a year to ask for leave.

That requirement has now been reduced to 180 working days. This may come into effect from 1 April.

Similar to the previous budget, Budget 2026 rationalised TCS rates to ease compliance, reduce refund delays, and address confusion among taxpayers.

The following TCS rates will be effective from April 2026:

— Sale of alcoholic beverages for human consumption: TCS rates on alcoholic drinks will be increased from 1% to 2%.

— Sale of tendu leaves: This product will attract a TCS rate of 2%, down from the earlier rate of 5% during its sale.

— Sale of scrap: The Budget 2026 increased the TCS rate on the sale of scrap to 2%, from the current 1% figure.

— Sale of minerals (coal, lignite, or iron ore): TCS rate on the sale of these products has been hiked from 1% to 2%.

— Remittance under LRS for overseas tour package: TCS rates have been reduced to a single flat rate of 2% without threshold from the existing dual rate of 5% and 20%.

— Remittance under LRS for education and medical treatment: The TCS rate for the above has been reduced from 5% to 2%.

The new income tax law has introduced higher Securities Transaction Tax (STT) on F&O trade, which has come into effect from today, April 1.

STT on futures contracts will rise to 0.05% from 0.02%, while STT on options premiums and exercise of options will be hiked to 0.15% from the present rate of 0.1% and 0.125%, respectively.

The higher STT is aimed at curbing speculative bets being placed on shares in the F&O segment of equity markets and is intended to protect small investors from heavy losses in speculative trades.

Under the revised fee structure, the cost of the FASTag annual pass will increase by ₹75, bringing the total from the current ₹3,000 to ₹3,075 from the start of the new financial year.

The new rate applies specifically to non-commercial vehicles that are equipped with a valid FASTag.

The pass can be used at approximately 1,150 fee plazas on National Highways and National Expressways nationwide.

As per the draft income tax rules, your PAN can become inoperative on 1 April if you did not link it to your Aadhaar number within the prescribed time. This is an existing position under the draft Income-tax Rules.

If your PAN is inoperative, you cannot claim income-tax refunds, and no interest will be paid on such refunds for the period during which the PAN remains inactive.

The PAN can become operative again only after you complete Aadhaar linking and pay any prescribed fee, in accordance with the rules.

Commercial cooking gas prices have also been raised by around ₹200 with effect from Wednesday, 1 April, marking the second hike in commercial LPG in a month.

In Delhi, a 19-kg LPG cylinder now costs ₹2,078.50, up ₹195.5 since the last revision on 7 March.

In Kolkata, Mumbai and Chennai, the price of a 19-kg commercial LPG cylinder stands at ₹2,208, ₹2,031 and ₹2,246, compared with ₹1,990, ₹1,835 and ₹2,043, respectively.

Commercial LPG is mainly used by restaurants, eateries, hotels and industries, and the hike may have inflationary implications.

The steep rise in aviation turbine fuel (ATF) prices, which accounts for 35–45% of an airline’s operating costs, could squeeze margins for them.

As a result, carriers will be prompted to push up ticket prices for flyers just as peak summer travel begins.

State-run oil marketing companies on Wednesday announced that it has doubled aviation turbine fuel (ATF) prices, raising costs sharply for airlines across the country.

In New Delhi, the price of ATF for domestic airlines has been hiked to ₹207,341.22 per kilolitre with effect from 1 April, up 114% from ₹96,638.14 in March.

The price increase comes amid a surge in global crude since the war between the US, Israel and Iran began on 28 February, and the subsequent blockade of the Strait of Hormuz by Iran, a key choke point for about 20% of global oil trade.

A major tax benefit that salaried individuals will get this fiscal year is that of the meal vouchers, with the tax-free limit of coupons increasing.

The tax-free limit for Meal Vouchers (like Pluxee/Sodexo) has been increased from ₹50 per meal earlier to ₹200.

• ITR Form 1 (Sahaj) and ITR Form 4 (Sugam) are simpler forms that are meant to cater to a large number of small and medium taxpayers.
• ITR-2 is filed by individuals and HUFs who do not have income from profits and gains in business or profession but have income from capital gains.
• ITR-3 is for individuals and HUFs earning income from a proprietary business or profession.
• ITR-5 is filed by firms and limited liability partnership and cooperative societies.
• ITR-6 is filed by companies registered under Companies Act.
• ITR-7 is filed by trusts and charitable institutions.

The price of commercial LPG cylinder has been increased on Wednesday by ₹195.5, according to multiple reports.

The hike comes amid global concerns of oil supply and a surge in prices.

The price of a 19 kg commercial LPG cylinder will now be ₹2,078.50 in Delhi, news agencies reported, citing state oil companies. According to ANI, the price of a 19 kg commercial LPG cylinder has gone up by ₹218 in Kolkata.

Meanwhile, prices of domestic LPG cylinders remain unchanged after last revision on March 7.

The Union Budget 2026 had extended the deadline for filing ITR-3 and ITR-4 for non-audit taxpayers to 31 August from the end of the relevant tax year. The revised deadline will also apply for FY 2025-26.

However, the deadline for filing ITR-1 and ITR-2 remains the same: 31 July, following the end of the relevant tax year. The due date for the tax audit also remains unchanged at 31 October.

No changes in the income tax slabs will be applicable from 1 April. This is because during Budget 2026, there was no announcement of a change in the income tax slabs under both old and new income tax regimes.

In the subsequent notifications of the Income Tax Act, 2025, and Income Tax Rules, 2026, there was also no mention of a change in the tax slabs.

The government has notified all income tax return (ITR) forms for the assessment year (AY) 2026-27, according to a PTI report.

This enables businesses, individuals, and other entities to start filing their income tax returns for the financial year 2025-26.

The Income Tax department had notified ITR forms 1 and 4 (for small and medium taxpayers) on 30 March; ITR forms 2, 3, 5, 6 and 7 and ITR-U (for updated return filing) have been notified on Tuesday, 31 March.

The last date for filing ITR for taxpayers and those who do not have to get their accounts audited is 31 July 2026.

The deadline to file a revised return was extended from 31 December to 31 March of the relevant financial year.

However, taxpayers will have to pay an additional fee to file a revised return after 31 December.

Meanwhile, the due date for filing belated returns remains unchanged.

One of the most significant reform that takes effect on Wednesday, April 1, is the replacement of the decades-old Income Tax Act, 1961 by the newly introduced Income Tax Act, 2025.

This transition marks a significant overhaul of India's direct tax system, aimed at making tax processes more streamlined and modern.

Banks have introduced changes to certain services from April 1. For example, HDFC Bank will now charge ₹23 per transaction for UPI-based ATM cash withdrawals after an individual exhausts the limit of five free transactions.

Under the new income tax rules, the new tax regime remains the default. Under the new tax regime, there are fewer exemptions. However, those who have more investments often choose to stick to the old tax regime to make use of the exemptions.

NHAI announced in March that the FASTag annual pass fee will be increased by ₹75, bringing the total from the current ₹3,000 to ₹3,075 from the start of the new financial year.

The FASTag annual pass recharge can be done via the Rajmarg Yatra App or the official NHAI website. Once the one-time fee is paid, the annual pass gets activated on the vehicle's existing FASTag within two hours.

People's take-home salary is expected to go down under the new labour laws as the provident fund (PF) contributions of the employees and the employer will increase.

Under the new codes, the provident fund contribution is required to be a proportion of 50% of gross pay.

— 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%

— 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%