From PAN, FASTag, and LPG prices to railway tickets... What has changed starting today?

Today—April 1, 2026—marks the beginning of the new financial year, and along with it, several key regulations impacting your finances and daily life have changed. The first day of the financial year not only turns the calendar page but also brings about significant changes to your salary, taxes, railway travel, and digital payment methods.

Ranging from income tax to FASTag and credit scores, the government and regulatory bodies are implementing eight major changes that will have a direct impact on your savings and expenses. Additionally, the prices of LPG cylinders have increased in the new financial year. This hike applies to commercial cylinders, with an increase of up to ₹218. In Delhi, a cylinder that previously cost ₹1,883 will now be available for ₹2,078.50.

A New Era of Income Tax: The Income Tax Act, 2025

The most significant change is set to occur within the tax regime. Effective April 1, the old Income Tax Act of 1961 will become a thing of the past, replaced by the ‘Income Tax Act, 2025.’ The primary objective of this new Act is to simplify tax procedures.

Under this change, confusing terminology such as ‘Assessment Year’ (AY) and ‘Previous Year’ (PY) has been eliminated. Now, only the term ‘Tax Year’ will be used. This means the period spanning from April 1, 2026, to March 31, 2027, will now be referred to simply as ‘Tax Year 2026-27,’ thereby reducing confusion for taxpayers.

Your ‘Take-Home’ Salary May Decrease

The government may implement the new Labor Codes starting April 1. If this occurs, companies will be required to make substantial changes to their salary structures. According to the new regulations, an employee’s ‘Basic Salary’ must mandatorily constitute at least 50% of their total Cost to Company (CTC).

As the Basic Salary increases, the portion deducted towards your Provident Fund (PF) and Gratuity will also rise correspondingly. The advantage of this is that you will receive a larger lump sum at the time of retirement; however, your monthly ‘in-hand’—or take-home—salary will decrease in the interim.

Gratuity Benefits and Stricter HRA Rules

The implementation of the new labor codes brings with it another aspect that serves as good news for employees. As the proportion of Basic Pay and Dearness Allowance (DA) within the salary structure increases, the amount of gratuity you receive will also rise. However, the rules regarding tax exemptions have been tightened.

Now, to claim an exemption on House Rent Allowance (HRA), employees will be required to mandatorily submit their landlord’s PAN card details along with concrete proof of rent payment. Without this documentation, claiming a tax exemption may prove difficult.

FASTag and Toll Travel Set to Become More Expensive

If you are a frequent traveler on highways, you can expect an increased burden on your wallet. The National Highways Authority of India (NHAI) has decided to hike the prices of annual FASTag passes.

The annual pass, which was previously available for ₹3,000, will now cost ₹3,075 starting April 1st. This pass is intended for non-commercial vehicles and will be valid across approximately 1,150 toll plazas nationwide. Please note that the validity of this pass is limited to one year or 200 toll crossings—whichever occurs first.

New Rules for Railway Ticket Cancellation

Indian Railways has introduced significant changes to its ticket cancellation refund policy. Refunds will now be processed based on the time remaining before the scheduled departure of the train:

8 to 24 hours prior: Canceling a ticket entitles you to a 50% refund.

24 to 72 hours prior: A deduction of 25% will be applied.

More than 72 hours prior: Only a fixed (flat) cancellation charge will be deducted, and the remainder will be refunded.

Less than 8 hours prior: No refund will be issued for ticket cancellations. Additionally, for the convenience of passengers, the facility to change one’s boarding point is now available up to 30 minutes before the scheduled departure of the train—a move that will come as a major relief to passengers residing in large cities.

Weekly Reporting of Credit Scores and Loan Data

The RBI has issued new directives to banks with the aim of enhancing transparency for borrowers. Banks and financial institutions will now report loan-related data to Credit Information Companies (such as CIBIL) on a weekly basis.

Previously, this reporting was done every 15 days. With this shift to weekly reporting, your credit score will remain more accurate and up-to-date. This will not only assist banks in accurately assessing risk but also ensure that customers receive immediate updates regarding their loan-related information.

Aadhaar No Longer Sufficient for PAN Card Applications

The significance of a birth certificate has now increased within the process of obtaining a PAN card. Effective April 1st, an Aadhaar card alone will no longer be accepted as valid proof of ‘Date of Birth’ for new PAN card applications.

Applicants are now mandatorily required to submit one of the following documents: a birth certificate, a Class 10th marksheet, or a passport. Furthermore, PAN cards will now be issued exclusively based on the information provided in the Aadhaar card; therefore, ensuring the accuracy of the details in the Aadhaar card is absolutely essential. Effective April 1st, the application forms for PAN cards will also undergo changes.

Tax on Sovereign Gold Bonds (SGB)

For those investing in gold, a significant change regarding taxation has come into effect. Now, if you have purchased Sovereign Gold Bonds (SGBs) through a stock exchange (secondary market) rather than directly from the RBI, you will be liable to pay Long-Term Capital Gains Tax at a rate of 12.5% ​​on such investments.

Tax exemptions will continue to be available exclusively to those individuals who purchase the bonds directly from the RBI and hold them until maturity (a period of 8 years). Additionally, banks have enhanced security measures for both ATM transactions and digital payments. Going forward, a mere OTP will no longer suffice for UPI or card-based payments; instead, 'Two-Factor Authentication' has been made mandatory.