Income Tax New Rules: The Income Tax Department is preparing to provide significant relief to the common man. The central government is implementing a new income tax law from April 1, 2026. Under this law, the tax filing process is being simplified significantly, and forms will now be available pre-filled. Furthermore, significant changes have been made to the rules for purchasing cars, land, and depositing cash in banks, which will prove to be very beneficial for the common man.
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Have the rules regarding PAN Cards changed?
According to the new rules, the requirements for presenting a PAN card have been significantly relaxed. Previously, a PAN card was required for bank deposits exceeding ₹50,000, but this limit has now been increased. Furthermore, the mandatory PAN card requirement for purchasing vehicles and property has also been increased.
The new PAN card rules are as follows:
Cash deposits: A PAN card will now be required only for deposits or withdrawals totaling ₹10 lakh or more in a year.
Purchasing a vehicle: A PAN card will now be required only for purchasing a car or bike over ₹5 lakh. Previously, this was required for every vehicle.
Property: A PAN card will now be required for transactions exceeding ₹20 lakh for the purchase or sale of land or a house, up from ₹10 lakh previously.
Hotel bills: A PAN card will only be required for hotel or restaurant bills exceeding ₹1 lakh.
What benefits will salaried employees receive in terms of HRA and allowances?
The rules have also been changed for salaried employees. Four major cities have now been designated as metro cities for claiming house rent allowance (HRA). This means that residents in these cities will now be able to claim up to 50% of their basic salary as HRA, up from 40% previously.
Changes related to pay and allowances:
| Facility | New Testament |
|---|---|
| HRA Metro City | Bengaluru, Hyderabad, Pune and Ahmedabad will be considered metro cities. |
| motor allowance | ₹8,000 per month will be tax-free for cars up to 1600cc. |
| Larger car allowance | ₹10,000 per month tax-free for cars larger than 1600cc |
| free food | Food up to Rs 200 per meal will be tax free from the company. |
| Gift Limit | Gifts received from employers up to Rs 15,000 will not be taxed. |
When will pre-filled ITR forms be available?
The government is making the tax return filing process a single-click process. The return for the financial year 2026-27 will be fully auto-filled. Taxpayers simply need to check their information, and if everything is correct, the return will be submitted in one click.
If anyone believes the information in the form is incorrect, they will have the option to edit it. Furthermore, it is now mandatory for those holding cryptocurrencies to disclose their holdings in the ITR form. The tax department will now also obtain data directly from crypto exchanges to ensure accurate information.
