Several financial and tax-related rules will change with effect from April 1, 2026, with implications for individual taxpayers and routine financial transactions. The changes include relaxations in certain Permanent Account Number requirements, revised Income Tax Return filing timelines for specific taxpayers, mandatory PAN disclosure for insurance purchases, revised tax treatment of MACT compensation interest, enhanced education-related tax allowances, and higher Securities Transaction Tax rates on derivatives trading.
Relief in PAN Requirements for Specified Transactions
Under the revised framework, PAN will no longer be mandatory for certain transactions up to specified thresholds. Cash deposits or withdrawals of up to ₹10 lakh in a financial year at banks or post offices will not require PAN disclosure. Purchase of a car or two-wheeler up to ₹5 lakh will not require PAN. Property transactions up to ₹20 lakh will also not require PAN. Expenditure of up to ₹1 lakh at hotels, restaurants, or functions will not require PAN disclosure.
Revised ITR Filing Deadline for Non-Audit Cases
The deadline for filing Income Tax Returns for businesses or professionals not subject to audit has been extended to August 31 from July 31. The due date for salaried individuals and taxpayers filing ITR-1 or ITR-2 remains July 31.
PAN Mandatory for All Insurance Policies; MACT Interest Tax Exemption
From April 1, PAN disclosure will be mandatory for the purchase of any insurance policy. Earlier, the requirement applied only to higher-value policies. In addition, interest received on compensation awarded by the Motor Accident Claims Tribunal will not attract tax.
Enhanced Education and Hostel Allowance Exemptions
The exemption limit for education allowance has been increased from ₹100 to ₹3,000 per month. The hostel allowance exemption has been raised from ₹300 to ₹9,000 per month for one child. The benefit will be available for a maximum of two children.
Higher Securities Transaction Tax on Derivatives
With effect from April 1, the Securities Transaction Tax on futures trading will increase from 0.02% to 0.05%. The tax on options premium will rise from 0.10% to 0.15%. An SST of 0.15% will also apply on options exercise.
The changes effective April 1, 2026, may affect tax compliance and transaction documentation. Taxpayers may update relevant documents, including PAN details, bank statements, insurance records, and ITR-related documentation, in line with the revised requirements.
