There are several important changes in the pipeline as we enter the new financial year on 1 April 2026. Several confirmed financial and regulatory changes will come into force across banking, fuel, taxation and travel. These changes will have a direct impact on the day-to-day lives of individual citizens.
Let us discuss them briefly.
10 important financial changes to look out for from 1 April 2026
1. New Income Tax Law
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.
2. Higher tax rebate benefit
Under the new tax regime, individuals earning up to ₹12 lakh annually will pay zero tax. This is due to an increased rebate under
3. Changes in TDS forms
From 1 April 2026, Form 16 and Form 16A will be replaced by and Form 131, respectively. The issuance timelines will be amended to facilitate smoother compliance and provide clarity in tax filings.
4. PAN Card rules to be tightened
The Income Tax Department will no longer permit Aadhaar alone as proof of date of birth for PAN card applications. such as the Class X certificate and passport will now be mandatory.
5. LPG prices to be revised
Domestic prices might be revised on 1 April. These charges might be revised to address the geopolitical challenges due to the ongoing US-Israel war with Iran.
6. CNG, PNG & ATF price changes
Fuel costs, including PNG, CNG and aviation turbine fuel, will be revised, thus impacting airfares and day-to-day transportation within the nation. These price changes, if implemented, will affect citizens’ lives comprehensively.
7. ATM withdrawal charges increase
Banks such as will, from 1 April 2026, include UPI ATM withdrawals in the free limit. If you exceed five transactions, you will be charged ₹23 per transaction thereafter. Similarly, Bandhan Bank will provide customers with three free transactions in metro cities and five in non-metro cities. ₹23 will be charged for additional transactions and ₹25 for any failed transactions due to insufficient balance.
8. Lower daily withdrawal limits
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.
9. Stricter train ticket cancellation rules
The Indian Railways will now permit zero refund if tickets are cancelled within 8 hours of departure. Earlier, this timeline was 4 hours.
10. Revised train ticket refund structure
The following is the revised refund structure for train ticket cancellations:
- 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.
Most changes, especially tax reforms, changes to Form 16, and banking charges, have been officially confirmed. Others await final government clearance.
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