Income Tax New Rules : From today, April 1, the new financial year 2026–27 has begun. Along with the start of the new financial year, several major rules have come into effect. Many significant changes related to income tax are also being implemented from today. The government has introduced new rules to make the tax system simpler and more transparent. These changes will impact salaried employees, business owners, and all taxpayers.
Let’s take a look at the key income tax changes effective from today:
New Income Tax Law Implemented)
From today, the old Income Tax Act of 1961 has been replaced by the Income Tax Act 2025. Additionally, the terms “Financial Year” and “Assessment Year” will now be replaced with the term “Tax Year.”
New ITR Filing Deadlines
For salaried individuals, the last date to file Income Tax Returns (ITR) is now July 31.
For business owners and professionals (ITR-3 and ITR-4), the deadline has been extended to August 31.
F&O Trading Becomes Costlier
The Securities Transaction Tax (STT) on Futures and Options (F&O) trading has been increased, making trading slightly more expensive.
Stricter HRA Rules
From April 1, 2026, the rules related to House Rent Allowance (HRA) have become stricter. Claiming HRA will no longer be as easy as before. Employees will need to provide more details about their rent and landlord.
As per the new rules:
- Providing the landlord’s PAN is now mandatory for claiming HRA.
- Proper proof of rent payment must be submitted.
- In some cases, complete details of the landlord will also be required.
Increased Tax Benefits for Employees
The government has increased certain tax benefits for employees:
- Tax exemption on meal cards has been increased from ₹50 to ₹200 per meal.
- The limit for gift vouchers has been raised from ₹5,000 to ₹15,000.
- Allowances for children’s education and hostel expenses have also been increased, providing relief to families.
Relief in TDS, TCS, and Foreign Expenses
- Deductions on expenses against dividend and mutual fund income will no longer be allowed.
- A single declaration facility has been introduced for TDS.
- Tax Collected at Source (TCS) on foreign travel, education, and medical treatment has been reduced to 2%, lowering overall expenses.