Important News for Taxpayers: These Income Tax Rules Change Starting Today; Know the Details

Starting today—April 1, 2026—several new rules related to income tax have come into effect across the country. These changes are set to have a direct impact on the general public. Through Budget 2026, the Central Government has introduced several significant modifications to the tax system…

New Income Tax Rules (April 2026): As of today—April 1, 2026—several new income tax regulations have been implemented nationwide. These changes will directly affect the common man. The Central Government has introduced key amendments to the tax framework through Budget 2026.

The primary objective of these changes is to streamline the tax process. However, some of these amendments may also result in increased costs for individuals. Let us explore these changes in detail…

Increased Tax Burden on Derivatives Trading

There is bad news for those trading in Futures and Options within the stock market, as the government has hiked the Securities Transaction Tax (STT). The STT on Futures contracts has now risen from 0.02% to 0.05%.

Meanwhile, a decision has been taken to increase the STT on Options trading from 0.1% to 0.15%. Following this amendment, trading in the derivatives segment may become more expensive compared to previous levels.

New Income Tax Law Implemented, But Tax Slabs Remain Unchanged

Effective today, the new Income Tax Act, 2025, has come into force across the country. Consequently, the previous legislation—which had been in effect since 1961—now stands repealed. However, as a relief to taxpayers, there have been no changes made to the income tax slabs for the time being.

The existing tax slabs will continue to apply as before. The amendments aim to simplify legal terminology and streamline legal procedures, thereby making it easier for the public to understand and navigate tax-related processes.

Relief Granted in ITR Filing Deadline

Taxpayers will now have more time to file their income tax returns. For individuals not subject to an audit, the deadline for filing ITR-3 and ITR-4 has been extended to August 31, a change from the previous deadline of July 31. However, there has been no change to the deadline for ITR-1 and ITR-2, which remains July 31.

Changes in TCS Rates

The government has implemented several significant changes to the rates for Tax Collected at Source (TCS), which are expected to have a direct impact on various transactions. The TCS rate on the sale of liquor has now been increased from 1 percent to 2 percent.

Additionally, the rate applicable to the sale of scrap has also been raised from 1 percent to 2 percent. Furthermore, a TCS of 2 percent will now be applicable to the sale of minerals such as coal and iron ore. Consequently, costs within these sectors are expected to rise.

Relief on TCS for Overseas Expenditure

The government has provided relief measures for individuals traveling abroad. Under the Liberalised Remittance Scheme (LRS), a uniform TCS rate of 2 percent will now apply to overseas tour packages, regardless of the transaction amount. Previously, this was applied at varying rates of 5 percent and 20 percent.

Moreover, the TCS rate on remittances sent abroad for the purpose of education or medical treatment has also been reduced to 2 percent. Previously, this rate stood at 5 percent. Thus, the government has provided relief to the public in this regard.