The onset of the new financial year heralds the implementation of the Income Tax Act, 2025, which will replace the outdated framework established in 1961. This new legislation is designed to simplify tax regulations, adopting a more user-friendly approach. A major shift is the terminology; the previous terms ‘Assessment Year’ and ‘Previous Year’ will now be collectively referred to as ‘Tax Year’. This change aims to reduce confusion for taxpayers when filing their returns.

Introduction of Form 130 for TDS Tracking

A significant addition to the tax documentation process is the introduction of Form 130, which will be utilized to track tax deductions at source (TDS). Employers will provide this form to salaried employees, while select banks will issue it to eligible senior citizens. The use of this form is now mandatory once TDS is deducted and deposited, facilitating clearer tracking of deductions for individuals.

Revisions to ATM Withdrawal Policies

Starting April 1, banks will implement new policies that may impact cash accessibility for customers. HDFC Bank will introduce a fee of Rs 23 for each transaction exceeding five free UPI-based ATM cash withdrawals. Additionally, Punjab National Bank is set to reduce withdrawal limits for specific debit cards. The new limits will typically fall between Rs 50,000 and Rs 75,000, a decrease from previous higher caps, necessitating better financial planning for frequent cash users.

Changes to Train Ticket Cancellation Policy

For those who travel frequently by train, a noteworthy update pertains to ticket cancellations. Indian Railways will modify its refund policy, offering no refund for tickets canceled within eight hours of departure. Previously, refunds were available for cancellations made within a four-hour window. Additionally, travelers canceling tickets between eight and 24 hours prior to departure will receive a 50% refund, while those canceling between 24 and 72 hours will receive a 25% refund. Even for cancellations more than 72 hours in advance, only partial refunds will be processed according to the applicable fees.

Revised PAN Application Requirements

Applying for a Permanent Account Number (PAN) card is set to become more stringent. Effective from April 1, it will no longer be sufficient to provide Aadhaar as proof of date of birth. Applicants will now need to present additional documentation such as a Class 10 certificate or a passport. This adjustment aims to enhance the accuracy of official records and documentation associated with PAN applications.

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