Athira Sethu
Kochi, 3 April 2026
As the financial year 2026-27 commenced on April 1, 2026, there are a number of significant changes that will impact your financial life. The changes include the usage of credit cards and FASTags, along with the rules regarding income tax and digital payments. Given below is a simple guide on the changes that will take place from April 1, 2026:
1. New Rules for Applying for a New PAN Card
Until now, the procedure for applying for a PAN card has been simple. The applicant had to provide the Aadhaar card as a proof of identity. However, from April 1, 2026, the applicant will have to provide other identification documents such as a birth certificate, voter card, passport, or even a magistrate affidavit. This is a significant change in the rules regarding the application of a new PAN card. Additionally, the applicant must ensure that the name on the Aadhaar card is the same as the name on the PAN card.
2. Increase in the Charges of the FASTag Annual Pass
The charges of the FASTag annual pass are going to increase. The cost of the FASTag annual pass is going from Rs 3,000 to Rs 3,075.
3. ATM Withdrawal Rules Changing
Banks like HDFC Bank, Punjab National Bank, and Bandhan Bank are changing their rules for ATMs. There are changes to their withdrawal limits and applicable fees. These rules are applicable from April 1, 2026. So, it is advisable to check with your bank to know more about this.
4. New Income Tax Rules
A new Income Tax Act 2025 is replacing the old one from 1961. These new rules are applicable from April 1, 2026. There is good news in this update, like higher exemption limits and bigger House Rent Allowance limits in cities like Mumbai, Delhi, etc. If you are a salaried employee, this is good news for you.
5. Changes to SBI Card Benefits
If you are using an SBI Card, there are some changes for you, particularly with your Cashback SBI Card. From April 1, 2026, for using your points to redeem your statement credits, it is now mandatory to do it in multiples of 4,000 reward points.
6. RuPay Debit Card Lounge Access Revised
If you possess a RuPay Platinum debit card, you should be aware of a change in your benefits. Starting April 1, 2026, you will not be able to use the airport and railway lounges. This change in benefits will be applicable to all RuPay card holders. Hence, you will need to explore other options for accessing lounges.
7. Updates from HDFC Bank
There are several changes announced by HDFC Bank, which will be applicable to their customers. Some of these changes include lending rates, returns on fixed deposits, ATM withdrawal charges, and locker charges. Some of these changes are already in effect, and others will be applicable starting April 1, 2026. Hence, you need to be aware of how these changes will impact your bank accounts if you are an HDFC Bank customer.
8. Two-Factor Authentication for Digital Payments
The Reserve Bank of India has issued a directive to all digital payment platforms. Starting April 1, 2026, all digital payment transactions will need to be authenticated using two-factor authentication. This will be applicable to all digital payment platforms, such as UPI and credit card payments.
9. Changes to Sovereign Gold Bonds (SGBs)
Sovereign Gold Bonds are a popular form of investment, and there are changes coming into effect from April 1, 2026. The tax-free redemption benefit will now be available only for the original investors who hold the bonds till maturity. If you are planning to buy these bonds through the secondary market, you will need to pay a 12.5% Long Term Capital Gains tax on the profits earned at the time of maturity.
10. Lower TCS on Overseas Spending
Travellers, rejoice! Your foreign tour packages are going to cost you less with the reduced Tax Collected at Source (TCS) amount. Earlier, the TCS rate was 5% for up to Rs 10 lakhs and 20% for anything above Rs 10 lakhs. However, now a flat rate of 2% TCS will be applied on the full cost of your foreign trip. This will help reduce the financial burden of those planning a trip abroad.
Moreover, the TCS on overseas remittances for education and medical treatment has been reduced from 5% to 2% for anything above Rs 10 lakhs. This is a welcome change for those planning to send money abroad for education or medical treatment.
