NEW DELHI – As of April 1, 2026, the Indian financial landscape has undergone its most significant transformation in over six decades. The historic Income Tax Act 2025 has officially replaced the aging 1961 framework, ushering in a new era of “Tax Year” simplicity and higher exemption limits designed to bolster the middle class.
The “Zero Tax” Milestone
Under the new regime, the effective tax-free threshold has seen a dramatic shift. Individuals earning up to ₹12 lakh annually now pay zero tax, thanks to an increased rebate under the revamped Section 87A. This move is expected to inject significant liquidity into the domestic economy, particularly benefiting the burgeoning tech and service sectors.
Document Overhaul: Goodbye Form 16
The transition has also modernized the documentation process for salaried employees and businesses alike:
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Form 130 and 131: The ubiquitous Form 16 and 16A have been retired. In their place, the new Form 130 (for salary) and Form 131 (for other income) have been introduced to align with the simplified “single tax year” terminology.
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New PAN Requirements: The “Aadhaar-only” era for PAN applications has ended. Effective this month, applicants must now provide additional proof of date of birth, such as a Class X certificate or Passport, marking a shift toward more stringent identity verification.
Banking & Payments: The “₹23 Rule” and Lounge Access Cuts
MUMBAI – Major shifts in retail banking policies have also taken effect today, April 7, 2026, as lenders recalibrate their fee structures for the new financial year.
ATM & UPI Cash Withdrawal Fees
Following a directive from the RBI, several major banks including HDFC Bank, PNB, and Bandhan Bank have implemented new fee structures for ATM usage:
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UPI ATM Limits: For the first time, UPI-based ATM withdrawals are being counted toward the standard monthly “free limit” of five transactions.
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Increased Charges: Exceeding these limits now carries a standardized fee of ₹23 per transaction—a slight increase designed to offset the rising costs of physical cash logistics and cyber-security infrastructure.
The “RuPay Lounge” Sunset
In a move that has surprised frequent travelers, the NPCI has officially discontinued lounge access benefits for RuPay Platinum debit card holders. As of April 1, these cards no longer grant entry to domestic or international airport and railway lounges, signaling a strategic pivot toward more premium, fee-based credit card tiers for travel perks.
Tech Snippets: “Eloquent” AI and the Pixel 10a Launch
BENGALURU – While the financial sector adjusts to new laws, the tech industry continues its relentless pace of innovation:
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Google “Eloquent” App: Google has launched a new high-speed speech-to-text app called Eloquent. Notably, it performs full-scale transcription entirely offline, targeting journalists and medical professionals who require total data privacy.
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Pixel 10a “Isai Blue”: Following the global launch of the Pixel 10a, Google has released a Japan-exclusive “Isai Blue” variant. The device features a unique “bump-less” camera design and celebrates neurodivergent artists through its custom system-wide themes.
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OnePlus Nord 6: The “9,000mAh Battery King” has officially hit Indian retail shelves today. Priced at ₹31,999, it is currently the most powerful mid-range device in the market, featuring a 165Hz display and a staggering 3,600 nits of peak brightness.
