Major India tax rules April 1

The Income‑tax Act, 2025 received Presidential assent on 21 August 2025 and was published in the Official Gazette as the consolidated charging statute that will replace the 1961 law with effect from 1 April 2026. (egazette.gov.in ) (egazette.gov.in) The Central Board of Direct Taxes issued the Income‑tax Rules, 2026 by Notification G.S.R. 198(E) on 20 March 2026 to operationalise the new Act from 1 April 2026, including revised forms and procedural timelines. (incometaxindia.gov.in ) (incometaxindia.gov.in) Draft rule changes widen the metro list qualifying for 50% HRA exemption to include Bengaluru, Hyderabad, Pune and Ahmedabad, bringing them onto the same 50% bracket that previously applied only to Delhi, Mumbai, Kolkata and Chennai. (livemint.com ) (livemint.com) The CBDT’s draft and final rules also raise PAN‑quoting thresholds: aggregated cash deposits/withdrawals up to ₹10 lakh in a financial year will not trigger PAN, immovable‑property transactions under ₹20 lakh will be exempt, motor‑vehicle PAN requirements will apply only above ₹5 lakh, and cash hotel/event payments rise to a ₹1 lakh threshold. (liveMint / Economic Times coverage) (livemint.com ) (livemint.com) The Reserve Bank’s “Authentication Mechanisms for Digital Payment Transactions” Directions, 2025 require two‑factor authentication for domestic digital payments from 1 April 2026, mandate that at least one factor be dynamic (not just SMS OTP), and set an October 1, 2026 deadline for CNP cross‑border card transaction controls. (rbi.org.in ) (rbi.org.in) Budget 2026 rationalised TCS: the government cut TCS on overseas education and medical remittances under the LRS and on overseas tour packages to a uniform 2% (applicable to remittances above ₹10 lakh for education/medical), while earlier TCS on sale of goods had already been removed in 2025. (economictimes.indiatimes.com ) (economictimes.indiatimes.com) Toll and FASTag rules were tightened: the National Highways Fee (Amendment) Rules, 2026 introduced digital enforcement linking unpaid user fees to VAHAN records and a 72‑hour e‑notice grace window before penalties, and NHAI raised the FASTag Annual Pass fee from ₹3,000 to ₹3,075 for FY 2026–27 effective 1 April 2026. (pib.gov.in ) (nhai.gov.in ) (pib.gov.in) The Ministry of Petroleum’s S.O. 1333(E) — the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Amendment Order, 2026, notified 14 March 2026 — bars households with piped natural gas (PNG) from retaining or obtaining domestic LPG connections and requires surrender of dual connections from the date of publication. (egazette.gov.in ) (egazette.gov.in)