Outlook Business Desk
The new financial year 2026–27 has begun, introducing a series of financial and regulatory changes across taxation, banking, retirement savings and everyday expenses. These updates are set to impact citizens’ daily finances and financial planning nationwide.
From April 1, 2026, the Income-tax Act 2025 replaces the 1961 Act. The new framework simplifies compliance with a streamlined system, introducing the “tax year” concept while retaining current tax slabs under both old and new regimes.
From April 1, 2026, capital gains on Sovereign Gold Bonds (SGBs) at maturity remain tax-free only for investments made directly through RBI primary issuances. Gains from SGBs bought via stock exchanges will now be taxed as long-term at 12.5% or added to income as short-term.
From April 1, 2026, Form 16 is replaced by Form 130 and Form 16A becomes Form 131. These changes simplify tax documentation, streamline reporting of salary and interest income and make tax filings easier for individuals and employers.
From April 1, 2026, taxpayers can file a revised income tax return up to 12 months after the end of the tax year, instead of nine months. Returns filed after nine months will incur a penalty, so timely filing remains important.
The new wage definition links basic pay to at least 50% of total salary. This increases Employees’ Provident Fund (EPF) contributions, boosting long-term retirement savings while reducing take-home pay, and enhances future gratuity and pension benefits for salaried individuals.
Government employees may now have the option to switch pension systems, including moving to the National Pension System (NPS). This provides flexibility between assured and market-linked retirement benefits, affecting long-term retirement planning and pension choices.
Several banks have updated ATM withdrawal rules from April 1, 2026. HDFC Bank includes UPI withdrawals in free limits with ₹23 charged beyond five transactions. Bandhan Bank allows three free in metros, five in non-metros, with extra transaction and failed payment fees applied.
PAN rules are stricter from April 1, 2026, requiring better alignment with Aadhaar details and additional documentation in some cases. Reporting norms for high-value transactions are strengthened to enhance financial transparency and improve tax compliance.