New Tax Law And PAN Changes From April 1

The government has confirmed sweeping reforms in taxation and financial regulations beginning FY27. These include simplified tax filing, revised PAN requirements, and structural changes aimed at reducing compliance burdens while modernizing India’s financial ecosystem.  

Income Tax Overhaul  
The new Income Tax Act, 2025 reduces the number of sections from 819 to 536, streamlining legal language and compliance. Taxpayers will see changes in slabs, deductions, and reporting formats. The law introduces a single “Tax Year” concept, replacing the dual system of Financial Year and Assessment Year.  

PAN Rule Changes  
PAN will now be mandatory for high-value transactions such as property purchases, vehicle registrations, and insurance policies, while easing requirements for smaller everyday transactions. This shift is designed to improve transparency and reduce misuse, while making compliance simpler for individuals and businesses.  

Broader Financial Updates  
Other changes include revised gratuity rules, salary structures, LPG price adjustments, and updates in railway ticket booking systems. Together, these reforms aim to align India’s financial framework with global standards and enhance efficiency for citizens.  

Key Highlights  

• New Income Tax Act, 2025 replaces 1961 law from April 1  
• Sections reduced from 819 to 536 for simpler compliance  
• PAN mandatory for high-value transactions, eased for small ones  
• Introduction of single “Tax Year” concept  
• Changes in salary, gratuity, LPG prices, and railway bookings  

Sources: Mint, Jagran Josh, ClearTax, ET Government, Upstox