Income Tax Rules April 2026: Important changes in tax related rules have come into effect in the country from today i.e. 1st April. Which is going to affect other people including those who file Income Tax Return (ITR). The old Income Tax Act of 1961 applicable till now has been removed and a new Income Tax Act 2025 has been implemented in its place.
The objective of the government behind this change is to make the rules easier and understandable. So that taxpayers face less difficulty in the process and they can follow the rules without any confusion. Let us know about some of these major changes…
Tax system has been made simpler
Under the new rules, simple language will now be used for tax related provisions. So that even common people can understand it easily. Along with this, the earlier system of separate financial year and assessment year has been removed and now a single ‘tax year’ has been implemented. That is, the year in which the income is received will be considered directly for tax.
Apart from this, the need to fill a separate form for those who do not pay tax has also been done away with. Due to which the whole process has become easier than before.
Increased tax exemption on gifts and vouchers
Now the tax exemption on gift cards, vouchers and coupons received from companies has been increased. Where earlier this limit was Rs 5,000 annually, it has been decided to increase it to Rs 15,000.
The special thing is that this exemption will be applicable under both the old and new tax system. Due to which the employees will get more benefits.
Tax relief on compensation interest
The interest received on compensation received from the Motor Accident Claims Tribunal (MACT) has now been made completely tax free. That means there will be no tax deduction of any kind on this money. Due to which the affected people will be able to get the benefit of the full amount.
Increased monitoring of credit card expenses
Now information about big expenses incurred through credit cards will have to be given to the Income Tax Department. Under the new rules, online transactions of more than Rs 10 lakh and cash expenditure of more than Rs 1 lakh will have to be reported to the department.
HRA claim rules become stricter
The rules for house rent allowance have been changed. Under the new rules, it will not be easy to save tax through fake receipts. Now employees will have to provide proof related to rent. For this, it will be necessary to share the PAN number of the landlord also.
In some cases, their complete information can also be sought. Along with this, Bengaluru, Hyderabad, Pune and Ahmedabad have been included in the list of metro cities. Where now up to 50 percent discount will be available on HRA, which was earlier 40 percent.
Also read: Empty pockets and heavy stress? 5 surefire ways to boost your financial health
