Financial Changes From April 1: The beginning of a new financial year, from tomorrow, April 1, 2026, comes with a set of changes in financial rules that will have a direct impact on common citizens, entrepreneurs, businesses and investors.
A new Income Tax Act–replacing the six-decade-old Income Tax Act 1961, higher Tax on F&O trade, and lower TCS are among the key rules that will come into effect from April 1.
New Income Tax Act
The biggest change that came into effect on April 1 is the implementation of the new Income Tax Act. The new tax law, which will be introduced in 2025, aims to make it easier to comply with the rules. As per the recently announced Income Tax Rules 2026, these laws will replace the decade-old regulations and introduce a more simplified taxation system, incorporating the concept of 'tax year' instead of the distinction between the current financial year and the assessment year.
Furthermore, advance tax payments for the financial year 2026-27, which begins in June 2026, will also be made under the new law.
Higher STT Rates
From April 1, investors will have to pay a higher Securities Transaction Tax (STT) on futures and options (F&O) trades. In the Budget 2026, the Finance Minister had announced that STT on futures contracts will be increased from 0.02 per cent to 0.05 per cent.
At the same time, the STT on option premiums and exercise of options will be increased to 0.15 per cent from the current 0.1 per cent and 0.125 per cent, respectively.
PAN Mandatory For Transaction
With the beginning of the new financial year, PAN will be a mandatory document for cash deposits exceeding Rs 10 lakh and for purchasing a vehicle costing more than Rs 5 lakh. Additionally, PAN need to be provided in property transactions exceeding Rs 20 lakh.
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Credit Cards Transaction Reporting
If a customer makes a credit card payment of more than Rs 10 in a financial year, banks need to report the information to the tax department.
Salary Structure Under the New Labour Law
Under the new rules, the basic pay and dearness allowance should constitute 50 per cent of the total salary. The new development will increase your gratuity and PF contribution, but your take-home salary may be slightly lower.
Lower TCS
TCS on overseas travel packages will be slashed from 20 per cent to 2 per cent from April 1. Meanwhile, the tax rate on remittances for medical and educational purposes has been increased from the existing 5 per cent to 2 per cent.