With the new year 2026 kicking in, several changes are also coming that will directly affect your money this year. The new money rules cover many changes, like how much tax you pay, how easily you file returns and how your investments, loans and inheritance are treated.
Whether you are a salaried employee, investor, borrower or card user, these changes will influence your financial choices in 2026.
The following are the changes to the new money rules that are all set to kick in this new year:
ITR (Income Tax Return) 2026
Individuals who have income up to Rs 12 lakh can take advantage of a tax rebate when filing their tax return in 2026, making it tax-free under the new regime. This means you would not have to pay any income tax because of the increased rebate of Rs 60,000 under Section 87A.
Salaried employees can enjoy an extra benefit of a standard deduction of Rs 75,000. This means their tax-free income limit is now Rs 12.75 lakh. This change aims to help middle-class taxpayers and make the tax system simpler.
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New Income Tax Act from April 2026
Replacing the old one (Income Tax Act of 1961), the new Income Tax Act will be effective from 2026, making tax laws simpler. The number of sections has dropped from 819 to 536 and the number of chapters has reduced from 47 to 23.
The CBDT will notify new income tax return forms by January 2026. The new forms aim to make tax filing easier, reduce disputes, and improve compliance.
The 8th Pay Commission
The 8th Central Pay Commission (CPC) will start on January 1, 2026, after the 7th CPC ends on December 31, 2025. The government reviews the pay scales, allowances, pensions and benefits for central government employees every 10 years.
With this new Pay Commission, your DA (dearness allowance) merges with your basic pay, resetting the DA to zero. Your salary is then recalculated using a fitment factor applied to the previous basic pay, which includes the merged DA.
Currently, the DA is at 58%, increased from 55% on July 1, 2025, with a revision expected on January 1, 2026. DA is typically revised every six months until the new pay commission's fitment factor is implemented, after which it resets to zero again.
Must Read: 8th Pay Commission Fitment Factor – Salary Hike Explained | Govt Update
SEBI Lowers Expense Ratio
SEBI announced that the statutory levies, such as GST, will not be included in the TER (Total Expense Ratio) of mutual funds and it will be divided into separate components. These changes are to benefit investors and make mutual fund investing more transparent.
This change will help investors understand what they are paying for and reduce hidden charges. SEBI will implement the revised expense ratio from April 2026.
SEBI's New TLH Code
According to the SEBI's new changes, starting January 2026, a new code for reporting transfers of securities from nominees to legal heirs will classify these transfers as tax-exempt inheritances. This change aims to make reporting easier for entities like RTAs (Registrars and Transfer Agents) and listed companies. The new code will improve reporting accuracy, lower compliance burdens and reduce disputes with tax authorities.
Asset Inheritance Simplification
The Indian government has made it easier to inherit assets by removing the requirement for mandatory probate of wills in Mumbai, Chennai and Kolkata. This change will come into effect on January 1, 2026. The Repealing & Amending Act, 2025, removes Section 213 from the Indian Succession Act, 1925. With this, the government hopes to simplify asset inheritance & create a more consistent legal framework in India.
Loans Against Silver
The RBI has introduced a new option for borrowers, effective from April 2026. They can now use silver jewellery or coins to secure loans from banks and non-banking finance companies (NBFCs), in addition to gold. This change aims to improve oversight, consistency and transparency in the market for loans backed by precious metals.
Commercial banks (including Small Finance Banks and Regional Rural Banks), Urban and Rural Co-operative Banks, NBFCs and Housing Finance Companies can offer these loans.
RBI Mandates Weekly Credit Reporting
The RBI plans to make important changes to credit bureaus starting July 1, 2026. Lenders will send borrower data to credit bureaus every week on the 7, 14, 21, 28 and the last day of each month (30 or 31). They will also provide a complete overview of all active and closed accounts by the 5 of next month. These changes aim to improve credit transparency and reduce errors, helping both lenders and borrowers.
Pre-Payment Charges on Floating-Rate Loans
The RBI has told banks and lenders to remove pre-payment charges on floating-rate loans. This change applies to individuals & MSEs (Micro & Small Enterprises). It will take effect for loans that are approved or renewed starting from January 1, 2026.
Currently, there are no pre-payment penalties for floating-rate term loans for individual borrowers when the loans are for personal, non-business use.
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Card Rewards and Fee Adjustments
Many banks, including IDFC First Bank, HDFC Bank and ICICI Bank, are changing their credit and debit card benefits and fees from January 2026.
For example, lower international reward multipliers on certain cards by IDFC, stricter rules for using vouchers by HDFC and ICICI, introducing a 1% charge on high-value transportation transactions and increasing DCC (Dynamic Currency Conversion) fees.
These changes will make it easier for you to manage your money in the following year. Knowing what to expect can help you get ready for 2026.
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