Groundbreaking financial changes every Indian must know:From PAN card to tax, here’s a complete guide on how new financial year 2027 hits your pocket

As the calendar turns to 1 April 2026, India is not just entering a new financial year; the citizens are entering a whole new era of new rules and regulations that would change the way they manage finances. With the coming into effect of the Income Tax Act, 2025, the rules governing your salary, your savings, and even your daily shopping are undergoing a massive makeover. If you are planning your budget for the 2026-27 period, here are the most important changes that will directly impact your pocket. 1. No PAN card required for transactions of up to certain limit The rules for when you need to show your PAN card and when not have changed significantly. The goal is to make life easier for common man while keeping a closer eye on very large transactions. a) Cash Deposits Withdrawals: You now only need to quote your PAN if your total cash deposits or withdrawals hit ₹10 lakh in a year across all your accounts. Previously, the daily limit of ₹50,000 used to trigger this requirement. b) Buying a Vehicle: Buying a small car or a bike? You no longer need a PAN card for vehicle purchases unless the price is above ₹5 lakh. c) Buying/selling a house: Buying your dream house or selling one! You no longer need a PAN card unless the property price is above ₹20 lakh. Earlier, this limit was ₹10 lakh. c) Booking of marriage hall: If you are hosting a grand wedding or a big party, you only need to provide your PAN for hotel or restaurant bills exceeding ₹1 lakh (up from ₹50,000). 2. Concept of FY AY is over: The Income Tax Act, 2025, simplifies the tax timeline by doing away with the distinction between the assessment year and the previous year, replacing it with a single ‘tax year’ framework. Those filing ITR for FY27 will get to use the term ‘tax year’ instead of assessment or financial years. 3. Claim TDS after ITR filing deadline without paying a penalty: Taxpayers will also be able to claim TDS refund even when ITRs are filed after deadlines, without any penal charges. 4. More tax benefits on children’s education hostel fees allowance Now you can deduct your total taxable income by ₹3,000 for receiving children education fees allowance from employer. Additionally, you will also be able to deduct taxable income by ₹9,000 against children hostel fees allowance received from your employer. So, you can deduct tax outgo by total of ₹12,000 using these two allowances. These benefits will continue to apply to a maximum of two children and remain available under the old tax regime. 5. Higher STT on options futures: Another major change in income tax has come into effect from 1 April is the Budget 2026 announcement of higher STT on FO trade. STT on futures contracts has risen to 0.05% from 0.02%, while STT on options premiums and exercise of options has been hiked to 0.15% from 0.1% and 0.125%, respectively. 6. Citizens to pay FY27 advance tax in June according to provisions of New Income Tax Act 2025: Advance tax payments for Tax Year 2026-27, commencing from June 2026, will be made in accordance with the new Act. 7. Lower tax on sending money abroad: Lower TCS on overseas tour packages and LRS remittances for medical and education purposes, will also come into effect from 1 April. TCS on overseas tour packages have been slashed to 2% from 20 per cent, while on remittance for medical and education purpose, the rate would be 2% as against 5%. 8. Claim HRA exemption in more number of cities Currently, taxpayers residing in metro cities such as Mumbai, Delhi, Kolkata, and Chennai can claim exemption of up to 50% of their basic salary, while those in other cities are eligible for 40%.But now people in more number of cities in India will get the benefit of up to 50% HRA exemptions. These cities are the following: The tax deduction benefit against HRA received from the employer is equivalent to the lowest of the following:
9. More scrutiny on HRA claim benefit under new tax rules: If the tenant pays more than ₹1 lakh rent in a particular tax year then following disclosures have become mandatory uner the new tax rules. These disclosures are required in the new Form 124: 10. Flat 12% surcharge on gains made in buyback offers A flat 12% surcharge will be levied on capital gains earned by individual or corporate shareholders by selling shares in the buyback offer of companies from 1 April. Currently, no surcharge is levied on taxable income up to ₹50 lakh, while taxable income between ₹50 lakh and ₹1 crore attracts a 10% surcharge on capital gains from buybacks.