Credit Card Users Alert: Credit card rules will change from April 1st. How will this affect you? Learn about the government's preparations.

Credit card usage is steadily increasing, from major cities to tier-two and tier-three cities. If you use a credit card, this news will be useful to you.

New Credit Card Rules: Credit card usage is steadily increasing, from major cities to tier-two and tier-three cities. If you use a credit card, this news will be useful to you.

Indeed, the Income Tax Department has recently released the Draft Income Tax Rules 2026, which include several major changes. These changes include some related to credit cards. Let's learn about them...

1. Information will be required for large credit card payments

The first change in the rules related to credit cards is that if the bill payment amount is large, information about it will have to be provided to the Income Tax Department. If an individual makes a credit card bill payment of more than ₹10 lakh in a financial year,

If this payment is made through other means, such as UPI, bank transfer, or check, it must be reported. Cash payments of ₹1 lakh or more must also be reported to the department.

2. Use of Credit Card as Address Proof

Credit card statements can be used as address proof when applying for a PAN card. However, it is important to ensure that the statement is no more than three months old. Statements older than the prescribed time limit will no longer be considered valid.

3. Use of Credit Cards for Tax Payments

Under the new rules, credit cards, debit cards, and net banking are now officially permitted as electronic payment modes for tax payments. This will make tax filing easier and more digital than ever before.

4. PAN Number Required for Credit Cards

Applicants are required to provide their PAN number when applying for a credit card. Banks and other credit card companies will not be able to issue credit cards without a PAN card. The government believes this will bring clarity to customer transactions and help strengthen the tax system.