NEW DELHI: New Financial Rules From June 2026: This month has brought a host of regulatory, taxation and financial changes that could affect taxpayers, salaried employees, investors, property buyers and digital payment users. From the first advance tax deadline under the new Income Tax Act, 2025, to stricter UPI verification measures and revised PAN requirements for property transactions, several key changes have either come into effect or are scheduled during the month.
Here are the major changes that individuals must know.
Advance Tax Deadline On June 15
One of the most important dates this month is June 15, 2026, which marks the first advance tax payment deadline for the financial year 2026-27.
Taxpayers whose estimated tax liability exceeds Rs 10,000 for the year are required to pay 15% of their advance tax liability by this date. The June instalment is particularly significant because it is the first advance tax cycle being implemented fully under the new Income Tax Act, 2025 and Income Tax Rules, 2026.
Failure to pay the required amount by the due date may attract interest under the applicable provisions of the tax law.
Higher Tax Exemptions For Salaried Employees
Several allowances available under the old tax regime have been revised upward, providing additional relief to eligible salaried taxpayers.
The exemption available under the Children Education Allowance has been increased to Rs 3,000 per month per child from the earlier Rs 100. Similarly, the hostel expenditure allowance exemption has been raised to Rs 9,000 per month.
In another major change, Bengaluru, Pune, Hyderabad and Ahmedabad have been included in the category of cities eligible for the higher 50% House Rent Allowance (HRA) exemption calculation, potentially increasing tax benefits for employees residing in these urban centres.
UPI Payments To Become More Transparent
Digital payments are set to become safer with a new measure introduced by the National Payments Corporation of India (NPCI).
Under the revised framework, UPI users will be able to see the recipient’s verified bank-registered name before completing a transaction. Whether a payment is initiated through a QR code or a mobile number, the system will display the beneficiary’s actual banking identity instead of user-created aliases or display names.
The move is aimed at reducing fraud and helping users verify the recipient before sending money.
Meanwhile, the Employees’ Provident Fund Organisation (EPFO) is also working towards enabling provident fund withdrawals through UPI, a facility that could significantly reduce processing time for subscribers.
Banking Services May Cost More
Several banks are revising charges associated with certain ATM transactions and related services. Customers may see changes in fees applicable to cash withdrawals beyond the free transaction limit, mini-statement requests and balance enquiries at automated teller machines. Since charges may differ across banks, customers are advised to check the latest fee schedules issued by their respective lenders.
LPG, CNG And PNG Prices Under Review
As part of the monthly revision mechanism, oil marketing companies reviewed prices of LPG cylinders, CNG and PNG from June 1. The revisions come after sharp increases in commercial LPG cylinder prices in the previous month.
Commercial LPG cylinder prices have been hiked from June 1, with the cost of a 19 kg cylinder in Delhi going up by Rs 42 to Rs 3,113.50. The government on Saturday reduced export duty on petrol, diesel and aviation turbine fuel (ATF) for the fortnight starting June 1. The revised export duty on petrol is at Rs 1.5/litre, Rs 13.5/litre on diesel, Rs 9.5/litre on ATF. CNG prices on Saturday were increased in Mumbai by Rs 2 to Rs 86 per kg.
Small Savings Rates Remain Unchanged
The government will announce new interest rates for the upcoming quarter July-September 2026 for small savings schemes, including PPF, SSY, and KVP. The Centre had maintained interest rates on small savings schemes for the current quarter. Popular schemes such as the Public Provident Fund (PPF) will continue to offer 7.1% interest, while the Sukanya Samriddhi Yojana will continue to provide 8.2%.
PAN Rules Revised For Property And Cash Transactions
The government has also introduced changes in PAN-related compliance requirements. Under the revised framework, quoting PAN is no longer mandatory for certain routine cash deposits above Rs 50,000. At the same time, the threshold for mandatory PAN requirement in property sale transactions has been increased from Rs 10 lakh to Rs 20 lakh.
However, compliance requirements have become stricter for larger transactions. PAN has become mandatory for property transactions exceeding Rs 45 lakh, as well as for certain gift transactions and joint development agreements.
Additionally, annual cash withdrawals exceeding Rs 10 lakh will continue to be tracked through mandatory PAN reporting mechanisms.
New Solar Module Rules Take Effect
India’s solar sector is entering a stricter compliance phase from June 1, 2026. Under the revised rules, all government-supported, subsidised and net-metered solar projects must use solar modules that are listed under the Approved List of Models and Manufacturers (ALMM).
The government has ruled out any further extension of the compliance deadline. While industry participants expect the move to support domestic manufacturing and improve quality standards, some experts believe it could lead to a temporary increase in solar installation costs.
