3 min readNew DelhiApr 1, 2026 03:41 PM IST
New Financial Year 2026-27 Rule Changes: Effective April 1, 2026, the Income-tax Act, 2025 will replace the six-decade-old Income-tax Act, 1961, marking a shift towards a more modern and simplified tax regime. The government has said the new law is designed to streamline provisions, reduce compliance burdens, and make statutory language clearer and easier to understand. Alongside this, the Central Board of Direct Taxes (CBDT) has introduced the Income-tax Rules, 2026 to align with the new framework.
Why is the Income-tax Act changing?
According to the government, the new Act aims to create a streamlined, simplified, and modern tax system with clearer definitions and consolidated provisions. Over time, the 1961 law had become complex due to numerous amendments, provisos, and explanations. The new legislation retains the same policy intent but presents it in a more logical, accessible, and user-friendly format. It also seeks to make compliance easier, improve ease of doing business, and align India’s tax system with global standards.
What changes in TDS and TCS?
All TDS provisions for non-salary payments, earlier spread across multiple sections (192 to 194T), have now been consolidated into a single Section 393. These are presented in a simplified tabular format, clearly outlining the nature of income, thresholds, and applicable rates. Previously, the scattered structure made compliance more complicated for deductors.
Here are some other major changes:
New PAN card rules
The application process will become more structured. While Aadhaar will remain the primary document for verification, additional documents will now be required.
Rewards on SBI card
The redemption structure for Cashback SBI Card and other credit cards has been revised. Reward points can now be redeemed only in multiples of 4,000, which may impact user redemption patterns.
Change in FASTag annual pass
The National Highways Authority of India (NHAI) has increased the annual pass fee for 2026–27 from ₹3,000 to ₹23,075, affecting frequent highway users.
RuPay lounge access
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RuPay Platinum debit cardholders will no longer have access to airport and railway lounges. The change has been communicated by the National Payments Corporation of India (NPCI) to member banks.
ATM withdrawal
Banks such as HDFC Bank, Punjab National Bank, and Bandhan Bank have revised ATM-related policies, including withdrawal limits, fees, and conditions.
Digital payment authentication
The Reserve Bank of India (RBI) will continue to mandate two-factor authentication for digital transactions, with OTP-based verification remaining in place to ensure security.
