Revised deadline for ITR, STT Above: Full list of new financial rule changes effective April 1

From April 1, 2026, a host of financial and regulatory changes will come into effect as India enters the new financial year 2026-27, impacting taxpayers and day-to-day transactions.

Here are some of the major updates

1. Deadlines for income tax returns have also been modified. Salaried individuals will continue to submit their applications by July 31, while the deadline for non-audit cases has been extended to August 31, giving self-employed professionals more time.
2. Another reform is to replace the decades-old Income Tax Act of 1961 with the new Income Tax Act of 2025, which seeks to simplify provisions, remove redundancy, and facilitate compliance.
3. Derivatives trading will become more expensive, as the Securities Transaction Tax (STT) across options and futures rises.
4. The rules for claiming Home Rent Allowance (HRA) have been tightened. Employees must now provide the landlord’s PAN number and appropriate proof of tenancy, with full disclosure required in some cases. Meanwhile, more cities – including Bengaluru, Hyderabad, Pune and Ahmedabad – have been added to the metro category to get higher exemption from the RMP.
5. Employee benefits have been expanded. The tax-exempt limit on meal cards has increased to $200 pounds per meal, while the exemption for gift vouchers has been raised to $15000 annually. Child allowances were also significantly boosted under the old tax system.
6. The valuation of company-provided vehicles has been revised, increasing the taxable value based on engine size and adding a higher charge if a driver is provided.
7. Stock buybacks will now be taxed as capital gains rather than dividends, changing how different classes of investors are taxed.
8. Changes were also made to sovereign gold bonds. The tax break on redemption will now only apply to bonds purchased during the original issuance, not those purchased in the secondary market.
9. For dividends and mutual funds, income will now be calculated without allowing deductions for interest expenses on borrowed funds.
10. Compliance has been facilitated in some areas. Investors can now submit a single declaration to avoid TDS across multiple income streams. Property buyers dealing with NRIs can deduct TDS using their PAN number instead of getting a TAN.
11. Taxes collected at source on travel abroad have been reduced to 2%, while a similar reduction applies to education and medical expenses abroad.
12. Taxpayers will now have more time to file revised returns – until March 31 – although additional fees will apply after December 31.
13. In a relief action, the interest on car accident compensation will be fully tax deductible, without the TDS deduction.
14. Finally, PAN rules have been tightened. No longer will only Aadhaar applications be permitted, PAN will now be mandatory for many high-value transactions, including large cash deposits, vehicle purchases, hotel payments, and real estate deals.