New income tax rules from April 1: Here are 10 changes from salary structure to PAN

New Delhi: With the beginning of the new financial year from Wednesday, i.e. April 1, many major changes are going to be implemented which will impact the pockets of common people and their everyday financial processes. The changes will directly impact salary, taxes, travel, and banking. 

What is the change in the income tax?

A new Income Tax Act will come into effect this year, replacing the old system. The six-decade-old Income Tax Act, 1961, has been replaced by the Income Tax Act, 2025. This will eliminate the confusion between financial year (FY) and assessment year (AY). The year you earn will be your tax year. Tax procedures are being simplified. Furthermore, the deadline for filing ITR-3 and ITR-4 has been extended to August 31, effective April 1.

Will take-home salary decrease?

New labour codes have also come into effect from Wednesday. This will change the calculation of the salary slip. Companies will now be required to keep half of your total salary as basic pay.  This will result in higher deductions for your PF (Provident Fund) and gratuity. While your future savings will increase, your monthly take-home pay may decrease.

Will there be benefit in gratuity?

An increase in basic salary will also increase the amount of gratuity, which means the person will receive more money when they leave the job or retire. 

Why will FASTag be expensive?

The National Highways Authority of India (NHAI) has increased the price of the FASTag annual pass. It will now cost Rs 3,075 instead of Rs 3,000. This annual pass is for non-commercial vehicles and can be used at approximately 1,150 toll plazas. And from Wednesday, cash will no longer be accepted at toll plazas.

Have Railway ticket cancellation rules also changed?

Indian Railways has updated its ticket cancellation rules. Refunds will now depend entirely on how early you cancel your ticket. The most significant change is that refunds will only be available for ticket cancellations up to eight hours before the train's departure. If you cancel your ticket less than eight hours in advance, you won't receive a refund.

Refund will be given like this:

• Before 72 hours: Almost full refund (minimum charges will be deducted)
• Before 24 to 72 hours: 25 per cent fare will be deducted
• Before 8 to 24 hours: 50 per cent fare will be deducted

Another good thing is that upon canceling an e-ticket, the money will automatically be credited to your account, without the need to fill out a separate form. Furthermore, passengers will now be able to change their boarding station up to 30 minutes before the train's departure. This feature is especially beneficial for those living in large cities with multiple railway stations.

What are the new rules for PAN card?

From today, Aadhaar card alone will no longer be sufficient to obtain a PAN card. Until now, people could apply for a PAN card using Aadhaar card alone. However, this feature will cease after March 31. Starting April 1, when applying, you will need to submit documents such as a birth certificate, voter ID, 10th-grade marksheet, passport, driving license, or an affidavit issued by a magistrate.

Will credit score updates be faster?

According to new regulations from the Reserve Bank of India, banks will now be required to update loan information weekly. This will help update your credit score more quickly.

What are the tax rules on Sovereign Gold Bonds?

If the person has purchased gold bonds from the stock market, they will now be taxed at 12.5 per cent. However, bonds purchased directly from the RBI will continue to receive tax exemptions if held until maturity.

What changes have happened in ATM transactions?

ATMs from Wednesday will offer a limited number of free transactions, after which charges will apply. For example, after five free transactions from HDFC Bank ATMs, UPI cash withdrawals will be charged Rs 23 per transaction. 

What all changes are there to digital payments?

Digital payments will now have enhanced security, and two-factor authentication will be mandatory. Previously, payments were often completed simply by entering an OTP, but that will no longer be the case. Two forms of identification will now be required for every transaction. For example, an OTP will be combined with a PIN, password, or fingerprint. This means an additional layer of security will be added to payments.