April 1 Financial Changes: Tax Rules, Salary Structure, PAN Norms Updated

Several financial changes have taken effect from April 1, 2026, with updates to income tax laws, salary structures, compliance requirements, and banking rules, according to government notifications and official frameworks.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Salary Structure Changes Under Labour Codes

The implementation of new labour codes may alter salary structures for salaried employees. Under the revised framework, basic pay is required to be at least 50% of total compensation. This change increases contributions toward provident fund (PF) for both employers and employees. 

Consequently, your monthly paycheck could shrink, even as your retirement savings through provident fund contributions and gratuity benefits potentially grow.  The minimum working days required for eligibility for certain benefits may also be reduced from 240 days to 180 days under the new rules.

Income Tax Law Revisions

The Income Tax Act, 2025 has come into effect, replacing the earlier framework. The new law also introduces a new concept of “tax year” that eliminates the need to distinguish between “previous year” and “assessment year.”

The tax slabs remain the same for both the old and new systems, and the new system remains the default. Under Section 87A, income up to ₹12 lakh remains effectively tax-free in the new regime. The standard deduction of ₹75,000 for salaried individuals continues unchanged.

New tax forms have also been introduced, replacing Form 16 and 16A with Form 130 and Form 131.

Updated Income Tax Return Deadlines

The deadlines for filing income tax returns have been changed. The deadline for filing ITR-1 and ITR-2 remains the same, i.e., July 31, while the deadline for filing ITR-3 and ITR-4 is now extended to August 31.

The deadline for filing the revised returns is now extended up to March 31, and the penalty will be applicable if the filing is done after December, as per the tax regulations.

Stricter PAN Compliance Rules

The rules under PAN compliance have also been made stricter, and the Aadhaar card is not considered a document to prove the date of birth. The passport, birth certificate, and Class 10 certificate are also required.

The PAN details must match the Aadhaar details, and the new application forms have been introduced for the issuance and updating of the PAN card.

Changes In Banking And Transaction Charges

Banks have revised certain transaction rules effective April 1. UPI-based ATM withdrawals will now be counted within the free monthly transaction limit.

After exhausting the free limit, withdrawals may attract charges of around ₹23 per transaction. Some banks have also revised daily withdrawal limits and introduced penalties for failed transactions due to insufficient balance.

TCS And Investment Rule Changes

Tax Collected at Source (TCS) rates have been modified for specified categories. For overseas tour packages, a flat rate of 2% has been prescribed, compared to earlier applicable rates ranging from 5% to 20%. Education and medical remittances under the Liberalised Remittance Scheme (LRS) are also included in the lower rates of TCS.

With regard to investments, the tax benefits on Sovereign Gold Bonds (SGBs) are available for direct purchases through RBI issuances only. Bonds acquired via exchanges may be subject to capital gains tax.

Changes In Everyday Costs

Certain routine expenses have also been revised. The FASTag annual pass fee has increased to ₹3,075. The rules for railway ticket cancellations have been made more stringent, reducing the refund periods. LPG and fuel prices are still being revised at periodic intervals according to global market rates.

These changes can be considered an overall update regarding taxation, compliance, and financial transactions, considering it is the beginning of a new financial year.