Today, April 1, 2026, marks the start of the new financial year, and with it several important rules related to your money and daily life have changed.
This new financial year brings major updates that will affect your salary, taxes, railway travel, digital payments, savings, and expenses.
From income tax to FASTag and credit scores, the government and regulatory bodies have introduced eight major changes that will directly impact your finances.
At the same time, LPG cylinder prices have also gone up in the new financial year. The price increase applies to commercial cylinders, which are now costlier by ₹218. A cylinder that earlier cost ₹1,883 in Delhi will now cost ₹2,078.50.
Let’s understand these changes in simple terms so that you can plan your finances on time.
New Income Tax Law from This Financial Year
The biggest change is in the tax system. From April 1, 2026, the old Income Tax Act, 1961 has been replaced by the Income Tax Act, 2025.
The purpose of this new law is to make tax procedures simpler and easier to understand.
Under the new system, confusing terms like “assessment year (AY)” and “previous year (PY)” have been removed. Now, only one term will be used: “tax year.”
For example, the period from April 1, 2026, to March 31, 2027 will now simply be called tax year 2026–27, making it less confusing for taxpayers.
Your Salary and Take-Home Pay May Change
The government may implement the new Labour Code from April 1.
If this happens, companies will need to make major changes to salary structures. According to the new rules, an employee’s basic salary must be at least 50% of the total CTC.
Because of this, the amount deducted towards Provident Fund (PF) and gratuity will also increase.
This means you will get more benefits at the time of retirement, but your monthly take-home salary may reduce.
Better Gratuity Benefits and New HRA Rules
The new Labour Code also brings some benefits for employees.
As the basic salary and dearness allowance (DA) part of the salary increases, your gratuity amount will also increase.
However, the rules for claiming House Rent Allowance (HRA) tax exemption have become stricter.
To claim HRA exemption, employees will now need to provide:
landlord’s PAN card
proof of rent payment
Without these documents, claiming tax exemption may become difficult.
FASTag and Toll Travel Will Become Costlier
If you travel frequently on highways, your travel expenses may rise.
The National Highways Authority of India (NHAI) has increased the price of the FASTag annual pass.
The annual pass price has increased from ₹3,000 to ₹3,075 from April 1.
This pass is for non-commercial vehicles and will be valid at around 1,150 toll plazas across India.
Its validity will be one year or 200 toll crossings, whichever comes first.
New Railway Ticket Cancellation Refund Rules
Indian Railways has changed its ticket cancellation refund policy.
Refunds will now depend on how early you cancel the ticket before the train’s departure:
8 to 24 hours before: 50% refund
24 to 72 hours before: 25% deduction
More than 72 hours before: only flat cancellation charges deducted
Less than 8 hours before: no refund
Passengers can now also change the boarding point up to 30 minutes before train departure, which will be especially helpful for people living in large cities.
Credit Score Will Update Faster
The RBI has issued new guidelines for banks to improve transparency for borrowers.
Banks and financial institutions will now report loan-related data to credit agencies such as CIBIL every week.
Earlier, this data was reported every 15 days.
With weekly updates, your credit score will be more accurate and updated faster, helping both banks and customers track loan information more efficiently.
New PAN Card Rules
From April 1, Aadhaar alone will no longer be enough as proof of date of birth for a new PAN card application.
Applicants will now need to provide one of the following:
birth certificate
Class 10 marksheet
passport
Also, PAN card numbers will now be issued based on Aadhaar information only, so it is important that your Aadhaar details are correct.
PAN card application forms have also been updated from April 1.
New Tax Rules for Sovereign Gold Bonds and Digital Payments
A major change has also been made for gold investors.
If you buy Sovereign Gold Bonds (SGBs) from the stock exchange (secondary market) instead of directly from the RBI, you will now have to pay 12.5% long-term capital gains tax.
Tax exemption will only be available to investors who:
buy bonds directly from the RBI
hold them till maturity (8 years)
In addition, security for ATM transactions and digital payments has also been increased.
Now, OTP alone will not be enough for UPI or card payments.
Two-factor authentication (2FA) has now been made mandatory for better security.
