Financial Changes from April 2026: Income Tax, SGB, STT & Key Updates

Several financial changes 2026 will come into effect from 1 April 2026, impacting income tax, investments, trading, and compliance for FY 2026–27. Key financial changes 2026 include the new Income Tax Act, revised SGB taxation, updated ITR deadlines, and increased STT rates.

Key Highlights:

• Income Tax Act: New Income Tax Act, 2025 effective from 1 April 2026
• SGB taxation: Tax exemption limited to original subscribers
• STT rates: Increased for futures and options trading
• ITR deadlines: ITR-3/4 due date extended to 31 August
• TCS changes: Reduced to 2% for education and medical remittances
• Digital payments: RBI mandates 2FA for transactions
• FASTag fee: Annual pass increased to ₹3,075

New Income Tax Act, 2025 (Effective April 2026)

The Income Tax Act, 2025 will be implemented from April 1 2026, replacing the Income Tax Act, 1961.

Key updates include:

• A revised structure with reorganised sections.
• Use of simplified language across provisions.
• Updated definitions and classification of income.

This replaces the existing framework with a newly structured tax law applicable from FY 2026–27.

SGB Taxation Changes from April 2026

A key change from 1 April 2026 relates to Sovereign Gold Bond (SGB) taxation.

• Tax-free maturity benefit now applies only to original subscribers.
• Investors buying SGBs from the secondary market must pay capital gains tax.
• Applies even if the bonds are held until maturity.

Earlier, tax exemption was available regardless of how the bonds were purchased.

What Changes under the New Rule?

• Primary issuance investors continue to get tax exemption on maturity.
• Secondary market investors fall under capital gains taxation.

STT Rate Changes in 2026

The Union Budget 2026 has increased Securities Transaction Tax (STT) rates on derivatives. This change will lead to higher transaction costs, especially for traders in the F&O segment.

These revised rates will be applicable on all eligible transactions executed from April 2026 onwards.

RBI Digital Payment Rules 2026

The Reserve Bank of India has updated digital payment security rules.

• Two-factor authentication (2FA) is mandatory.
• Applies to UPI, debit cards, credit cards, and online banking.
• Authentication may include OTP, PIN, or biometric verification.

Revised ITR Filing Due Dates

The due dates for filing certain income tax returns have been updated from April 2026.

• Due date for ITR-3 and ITR-4 (non-audit cases) has been extended to 31 August.
• This applies from FY 2025–26 (AY 2026–27) onwards.
• Due date for ITR-1 and ITR-2 remains 31 July.
• Due date to file ITR for tax audit remains 31 October.

These timelines apply based on the type of taxpayer and audit requirements.

Reduction in TCS on Foreign Education and Medical Expenses

Under the Liberalised Remittance Scheme (LRS), the government has reduced Tax Collected at Source (TCS) on certain overseas expenses.

• Education abroad: Reduced from 5% to 2%
• Medical treatment abroad: Reduced from 5% to 2%

These revised rates apply to eligible foreign remittances made under LRS from April 2026 onwards.

Streamlined Form 15G and 15H Submission Process

The submission process for Form 15G and Form 15H has been updated to reduce duplication and simplify TDS compliance. Earlier, individuals had to submit these forms separately to each bank, mutual fund, or financial institution to avoid TDS deductions.

Now,

• Investors can submit Form 15G or Form 15H directly to depositories.
• Details will be shared across institutions through depositories (NSDL/CDSL).

This update simplifies the process of declaring non-taxable income and avoiding excess TDS deductions.

FASTag Annual Pass Fee Revised

The FASTag Annual Pass fee has been revised for FY 2026–27.

• The annual pass fee has been increased from ₹3,000 to ₹3,075. 
• This revised fee is applicable to non-commercial vehicles that have a valid FASTag and are eligible for the annual pass facility.

Who will be Affected by Financial Changes 2026?

These financial changes 2026 will impact:

• Salaried taxpayers
• Investors in SGBs and mutual funds
• Stock market traders (F&O)
• Individuals sending money abroad
• Digital payment users

The financial changes in 2026 include updates to income tax laws, investment taxation, and compliance processes. These financial rule changes from April 2026 will apply from FY 2026–27 and affect taxpayers and investors. Understanding these financial changes India has introduced can help in better financial planning and compliance.

Also Read:
1. Financial Year-End Checklist
2. New Income Tax Rules From 1 April 2026