The year 2026 has much more to offer, with policy and regulatory changes waiting to impact the earning, saving, investing, and borrowing patterns of Indians. Whether it is a matter of taxes, salaries, or new RBI/SEBI guidelines, the implications are poised to reach every working, investing, card-holding, and borrowing Indian.
From salaried employees and investors to borrowers and cardholders, these updates will influence how you manage your money in 2026.
ITR 2026: Income up to ₹12 lakh becomes tax-free
There is considerable respite for taxpayers because of an increased Section 87A tax rebate. Those earning up to ₹12 lakh a year will not have to pay any income taxes when filing an ITR form 2026 because of an income tax rebate of ₹60,000. This benefit will be in addition to an existing standard deduction of ₹75,000 for all those earning an annual salary.
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New Income Tax Act from April 2026
As per a report by Moneycontrol, there is expected to be a paradigm shift in the taxation regime applicable in India, as the New Income Tax Act will replace the existing Act of 1961 as of April 1, 2026. There will be fewer sections and chapters, making it simpler, while new forms of ITR will be notified by January 2026, which will ease taxes and reduce disputes.
8th Pay Commission to take effect
The 8th Central Pay Commission starts from January 1st, 2026, thereby concluding the period of the 7th Pay Commission. The usual practice is to merge the earned Dearness Allowance (DA) into the basic pay and reset the DA to 0 after the salary revision based on the new fitment factor.
Mutual fund costs to fall from April 2026
The expense ratio of mutual funds has been made more transparent by SEBI. The statutory fees of GST and stamp duty will not be included in the expense ratio. The ceiling rates per category of mutual fund expenses have been reduced. Index Funds as well as ETFs will become more affordable.
SEBI's new TLH code: Easier inheritance and asset transfers
As of January 2026, the Transmission to Legal Heirs code under SEBI will provide automatic tax-exempt treatment for the transfer of securities to a legal heir. Additionally, the mandatory probate requirement while transferring wills has been abolished in Mumbai, Chennai, and Kolkata to facilitate the transmission of assets.
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New RBI rules for loans and credit reporting
Beginning from April 2026, borrowers can take a loan with silver jewellery or coins as collateral. Starting from July 2026, there will be a requirement to report credit weekly, while from January 1, 2026, there will be no prepayment charges on flexible rate loans applicable to individuals as well as MSEs.
Card users face revised fees and rewards
Most banks have been adjusting their card benefits and fees from January 2026, cutting the number of reward points, the lounge access entitlement, and increasing fees associated with some transactions.
