Pan card application, train ticket refund, PF & I-T rules: Here’s what changes from April 1

As the new financial year (FY 2026-27) begins on April 1, 2026, several significant regulatory and financial changes are set to take effect across India and specifically in Kerala. Below are the key updates categorised by sector:

1. Income Tax Reforms
The most transformative change is the implementation of the Income Tax Act, 2025, which officially replaces the 65-year-old Income Tax Act of 1961.

• Terminology Shift: The confusing concepts of "Assessment Year" and "Previous Year" are abolished. From April 1, the year in which you earn income is simply called the "Tax Year."
• New Tax Slab Rebate: Under the New Tax Regime, individuals with an annual income up to ₹12 lakh will now pay zero tax (up from the previous ₹7 lakh limit) due to an enhanced rebate under Section 87A.
• New Filing Forms: Form 16 and 16A are replaced by Form 130 and Form 131.
• Revised Deadlines: The deadline for filing ITR-3 and ITR-4 has been extended to August 31.

2. Banking and Digital Payments

• HDFC Bank: UPI-based ATM withdrawals are now counted within the 5 free monthly transactions. Subsequent transactions will cost ₹23 each.
• Bandhan Bank: Fees of ₹23 for extra transactions and ₹25 for failed transactions (insufficient balance) take effect.
• Debit Card Limits: Punjab National Bank (PNB) has reduced daily withdrawal limits for select card variants to a range of ₹50,000 to ₹75,000.
• Credit Cards: SBI Card has revised its reward points redemption policy; points converted to statement credit may now face new valuation rules.

3. Utility and Essential Services

• LPG Pricing: Oil Marketing Companies (OMCs) typically revise fuel prices on the 1st of every month. Geopolitical tensions are expected to cause a fluctuation in Commercial and Domestic LPG rates this April.
• PAN Applications: Aadhaar will no longer be sufficient as a standalone proof of Date of Birth (DoB) for new PAN applications. You must now provide a Class 10 certificate or Passport.

4. Transport and Travel

• Railway Refunds: Indian Railways has updated its cancellation policy. You can now get a refund if a ticket is cancelled up to 8 hours before departure (previously 4 hours).
• Fastag: Any Fastags with incomplete KYC or those not linked to a specific vehicle "One Vehicle, One Fastag" may be deactivated or blacklisted by NHAI starting this month.

5. Labour Laws and Salary Structure
If the new Labour Codes are fully notified, companies must ensure that the Basic Pay is at least 50% of the total CTC. This will increase your Provident Fund (PF) contributions (higher long-term savings) but may slightly reduce your monthly take-home pay.