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New Income Tax Act 2025 To Take Effect From April 1: 10 Key Changes That Will Affect Your Money
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The New Income Tax Act, 2025, effective April 1, 2026, replaces the 1961 Act. Key changes: PAN for high-value transactions, expanded HRA benefits, higher tax-free perquisites, etc
Income Tax Rules 2026: 10 changes that will impact your pocket
The New Income Tax Act, 2025 is set to come into effect from April 1, 2026, replacing the decades-old Income-tax Act, 1961 with a simplified and more streamlined tax framework. The new legislation aims to make tax laws easier to understand by reducing complex provisions, eliminating redundant sections, and reorganising the structure of the law to improve clarity for taxpayers, professionals, and businesses.
1. PAN Rules Overhauled for High-Value Transactions
Under the draft rules, PAN will be required for annual cash deposits or withdrawals of Rs 10 lakh or more (aggregate in a financial year). Currently, a per-day limit of Rs 50,000 is applicable in deposits, while withdrawals have no specific provision.
PAN will be mandatory for vehicle purchases of Rs 5 lakh or more, including two-wheelers. Currently, PAN is needed for all vehicles, except for two-wheelers, irrespective of value.
For immovable property transactions, including gifts and JDAs, exceeding Rs 20 lakh, PAN must be quoted.
PAN will now be mandatory for all insurance premium payments, regardless of amount. Currently, PAN is required if the premium is above Rs 50,000 in a fiscal year.
However, PAN will be required for hotel/ event payments above Rs 1 lakh per transaction, against the current Rs 50,000.
This replaces the earlier fragmented daily or transaction-based limits and introduces a more annualised reporting structure.
2. Cash Deposits & Withdrawals: Annual Threshold Introduced
Currently, PAN is required for cash deposits exceeding Rs 50,000 in a day. The draft rules shift focus to an annual aggregate threshold of Rs 10 lakh for both deposits and withdrawals.
This could mean tighter tracking of cash-heavy transactions while reducing paperwork for smaller daily banking activities.
3. HRA Benefits Expanded to More Cities
In a major relief for urban salaried taxpayers, Bengaluru, Pune, Ahmedabad and Hyderabad have been proposed to be treated as metro cities for House Rent Allowance (HRA) purposes.
This increases the HRA exemption cap to 50% of basic salary (from 40%) for employees living in these cities, potentially reducing tax liability for lakhs of professionals.
4. Higher Tax-Free Perquisite Limits
The draft rules enhance tax-free limits for certain employer-provided benefits, including official vehicles and employer-provided meals.
The earlier provisions were scattered and outdated. These have now been consolidated and rationalised to reflect current costs and business practices.
5. Property Transactions Threshold Raised
The PAN reporting threshold for immovable property transactions has been increased from Rs 10 lakh to Rs 20 lakh.
Importantly, this now explicitly includes gift transactions, joint development agreements (JDAs), and stamp value-based transactions.
This aligns reporting requirements more closely with prevailing property values.
6. Insurance Premium: PAN Now Mandatory for All
Earlier, PAN was required only if the annual insurance premium exceeded Rs 50,000. Under the draft rules, PAN will be mandatory for all insurance premium payments, regardless of amount. This may increase traceability of high-value policies and prevent misuse.
7. Vehicle Purchases: Two-Wheelers Included
Previously, PAN was required for all motor vehicles except two-wheelers. Now, the rule shifts to a value-based threshold of Rs 5 lakh, and it includes motorcycles and two-wheelers. This aligns compliance requirements with vehicle price escalation.
8. Crypto Exchanges Face Wider Reporting Requirements
Acknowledging the growing digital asset ecosystem, the draft rules expand information-sharing requirements for crypto exchanges. This could mean tighter reporting standards, improved traceability of crypto trades, and greater alignment with anti-tax evasion mechanisms.
9. CBDC Recognised as Valid Electronic Payment Mode
The draft rules formally recognise Central Bank Digital Currency (CBDC) as a valid electronic mode of payment. The Reserve Bank of India has already introduced the Digital Rupee in pilot phases. Recognition under tax rules integrates CBDC into mainstream tax compliance frameworks.
10. Massive Structural Simplification: Rules & Forms Reduced
One of the biggest structural reforms is simplification:
Rules reduced from 511 to 333
Prescribed forms reduced from 399 to 190
Provisions earlier scattered across multiple rules have been consolidated into topic-based frameworks. Operational details are increasingly moved to Schedules, making the rulebook shorter and more navigable.
March 15, 2026, 16:17 IST
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New building standard makes fire safety advisory, raises height threshold to 24m – The Times of India
New Delhi: Residential buildings under 24 metres in height — a category that includes a large number multi-storey homes, such as the ill-fated one in Delhi’s Vivek Vihar — will fall outside the scope of “fire and life safety” provisions under the newly notified National Building Construction Standards (NBCS), which replaced the National Building Code (NBC) last week.NBCS fire and public safety norms, which are only “advisory” in nature, are applicable for buildings beyond 24 metres, against the earlier norm of 15 meters. Though the Deregulation Cell of Cabinet Secretariat had directed Bureau of Indian Standards (BIS) to keep fire and life safety out of NBCS, it was included due to pushback from technical experts.These provisions prescribe norms on how a building should be designed, equipped and managed to prevent fires and protect occupants if one occurs. This includes means of escape, and fire detection and alarm systems.The NBCS document said that “fire and life safety” is only for guidance and referral for state govt and local authority in respect of fire safety in buildings considering that “fire services is a state subject and a municipal function” as per the Constitution.“Provisions in NBCS have been updated considering the changes that have happened over the years. We have prescribed what states and municipalities can follow. It’s the responsibility of states and local authorities to ensure safety of structures and citizens,” said former Delhi Fire Service chief S K Dheri, who heads the fire safety committee at BIS.TOI has learnt that one of the key reasons for replacing NBC with NBCS was the confusion created by the term “Code.” Though NBC was voluntary, its title suggested legal enforceability, leading to disputes and litigation, and courts hauling up builders and govt entities for not following the code’s provisions.The document mentions that the nature of standards and codes has changed from a prescriptive regime, under which states and local authorities required hand holding, to a “more performance-oriented outlook, giving ample scope for innovation and decision-making”.However, experts involved in preparation of both NBC and current NBCS have raised concerns, pointing to inadequate institutional capacity of many municipal bodies to formulate detailed norms.Ajit Kumar SM, a committee member and president of Karnataka Professional Civil Engineers Act Steering Consortium, cautioned that increased state-level variation could result in inconsistent safety standards. He highlighted concerns about rising liability for professionals without adequate regulatory protection, potentially compromising public safety and professional integrity.
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Private credit risks may trigger wider crunch; Fed’s Michael Barr warns of ‘psychological contagion’ – The Times of India
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