10 Big Financial Changes From April 1: From New Income Tax Law To LPG Price Revision To New ATM Rules

Financial Changes From April 1: As we step into the new financial year on April 1, 2026, several important financial and regulatory changes will come into effect across taxation, fuel prices, banking, and travel. These changes will have a direct impact on the daily lives of individuals.

Here's a closer look at key changes coming into effect from April 1, 2026.

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New Income Tax Law

From April 1, the Income Tax Act, 2025, will come into effect, replacing the six-decade-old tax law, Income Tax Act, 1961. One of the key changes is the simplification of terminology, replacing the slightly confusing 'Assessment Year' (AY) and 'Previous Year' (PY) with a single, more straightforward 'Tax Year'.

Relief Under New Tax Regime

Under the new tax regime, individuals with an annual income of up to Rs 12 lakh will not have to pay any tax. This is due to the increased rebate under Section 87A, aiming at providing relief to taxpayers.

Changes In TDS Forms

From April 1, 2026, Form 16 and Form 16A will be replaced by the newly introduced Form 130 and Form 131, respectively. In addition, the issuance timelines will be revised to ensure smoother compliance and reduce delays, allowing taxpayers to file their returns more accurately and efficiently.

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Stricter PAN Card Rules

Starting April 1, the Income Tax Department will no longer accept Aadhaar as the sole proof of date of birth for PAN Card applications. Applicants will now be required to submit additional documents, such as a Class X certificate and a passport, to verify their date of birth, Mint reported.

LPG Price Revision

The Oil Marketing Companies (OMCs) review prices of LPG cylinders on the first day of every month. Accordingly, domestic LPG prices may be revised on April 1, 2026, amid continued volatility in global energy markets.

These changes are driven by geopolitical tensions due to ongoing conflict involving the US, Israel, and Iran, which has disrupted key supply routes.

CNG, PNG And ATF Price Revision

The prices of CNG, PNG and ATF are likely to be revised on April 1, which will have a major impact on airfares and day-to-day transportation within the country.

New ATM Rules

Starting April 1, banks such as HDFC Bank will include UPI ATM withdrawals in the free limit, allowing up to five free transactions per month. Any transaction beyond this limit will incur a fee of Rs 23 per transaction.

Similarly, Bandhan Bank will offer three free transactions in metro cities and five in non-metro cities. Additional transactions will incur a fee of Rs 23, while failed transactions due to insufficient balance will incur a fee of Rs 25.

Revised Debit Card Withdrawal Limits

Punjab National Bank has decided to reduce the debit card withdrawal limit for select cards. The withdrawal limit has been reduced to Rs 50,000 to Rs 75,000, down from the earlier withdrawal limit of up to Rs 100,000.

Changes In Train Ticket Cancellation Rules

The Indian Railways has updated train ticket cancellation rules. According to the revised rules, no refund will be issued if tickets are cancelled within 8 hours of departure, compared to the previous 4-hour timeline.

Revised Train Ticket Refund Rules

The Indian Railways has revised its refund policy for train ticket cancellation.

- Cancellation 8-24 hours before departure: 50 per cent refund.

- Cancellation 24-72 hours before departure: 25 per cent deduction.

- Cancellation more than 72 hours before departure: A maximum cancellation charge applies; the refund amount will be as per Indian Railways' terms and conditions, which are subject to change.