April 1 Changes: The new financial year (FY27) kicks off on April 1, bringing with it important changes for taxpayers. Among them is the implementation of the new Income Tax Act, which comes into effect from day one of the fiscal year. Alongside this reform, several other major policy shifts are set to take effect, promising to have a substantial impact on the common man’s wallet.

1. Relief Given In Revised Return

Now, taxpayers can file revised returns with penalties until March 31. Additionally, taxpayers can file returns without penalties until December 31.

ITR Filing Due Date Changed

There's some relief for non-audit taxpayers who file under ITR-3 and ITR-4. These taxpayers can now file their ITRs until August 31. However, those who file under ITR-1 and ITR-2 will still have to pay their taxes by July 31, as before.

2. Tax Year Instead Of Assessment Year

The assessment year shown while filing your ITR will now be replaced by the tax year.

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3.What Are Changes In TCS, TDS, TCS?

-Under the Liberalised Remittance Scheme, TCS on education and medical remittances exceeding Rs 10 lakh will be reduced from 5 to 2 per cent.

-TCS on foreign tourism packages will also be reduced to 2 per cent.

-TCS will continue to be 20 per cent for all other remittances.

TDS Will Not Be Levied On These

-The Motor Accident Claims Tribunal awards compensation for motor accident cases. If compensation is delayed, interest is also charged. TDS will no longer be levied on this interest.

-The company provides reimbursement to employees for travel to and from home, which will no longer be subject to TDS.

TAN Will Be Abolished

Non-residents are required to pay tax through a TAN when purchasing property. However, the need for a TAN will be eliminated from April 1, as non-residents will be able to deposit TDS through a PAN-linked challan.

Tax Exemption

Pension Exemption

Armed forces pensions are currently tax-free. However, from April 1, they will only be tax-free for those who leave service due to physical disabilities.

There will be an increase in exemption

-Education examination has been increased to Rs 3000 per student.

-Hostel exemption has been increased to Rs 9000 per student.

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4. UPI New Rules

-From April 1, only OTP will not be sufficient for payment.

-'Two-factor authentication' (2FA) will become mandatory for payments.

-'Two-factor authentication' will require PIN, password and fingerprint.

-This will now delay the increased payment.

-RBI has taken this step to avoid digital fraud.

5. Pan Card New Rules

-If the deposit or withdrawal in the bank or post office is more than Rs 10 lakh, then PAN will have to be given.

-PAN will have to be given on purchasing a vehicle worth more than Rs 5 lakh.

-PAN will have to be given even while booking expensive hotels.

-If the property transaction is more than Rs 20 lakh then PAN will have to be given.

6. Changes Related To Share Market Tax

The rules related to STT and buyback are going to change from April 1.

7.New Rules: What Else Will Change?

Changes Related To Train Ticket Cancellation

-If a passenger cancels the ticket before 72 hours of the train departure time, he will get the maximum refund.

-Similarly, if a confirmed ticket is cancelled between 72 hours and 24 hours before the train's departure, a fixed penalty will be imposed. This penalty will be 25 per cent of the fare, but not exceeding the prescribed charges.

-If the ticket is cancelled between 24 hours and 8 hours before the train departure, the passenger will have to pay 50 per cent of the fare as cancellation fee.

-If you cancel your confirmed ticket less than 8 hours before the departure of the train, you will not get any refund.

Will There Be Change In RBI Repo Rate?

The RBI holds a meeting of its Monetary Policy Committee every two months. During this meeting, the RBI makes several important financial decisions. It also decides whether to make any changes to the repo rate. The repo rate impacts your loan EMIs. The RBI will announce the repo rate next month on April 8.

Will There Be Changes In LPG Rates?

LPG rates are revised by gas agencies on the first of every month. However, it is not necessary that gas agencies change prices every month.