Major Changes Across India from April 1: Toll Plazas Go Cashless, New Tax Rules Begin

Several significant changes are set to come into effect across the country from April 1, marking the beginning of the new financial year. These changes will impact toll payments, taxation, banking services, and railway rules. One of the most notable changes is that all toll plazas across the country will become completely cashless. From April 1, drivers will only be able to pay toll tax through FASTag or UPI. Motorists without FASTag have been advised to activate their accounts immediately or ensure that UPI payment facilities are enabled on their smartphones to avoid inconvenience or penalties. Additionally, the National Highways Authority of India (NHAI) has increased the price of the FASTag annual pass from ₹3,000 to ₹3,075. This pass is applicable for non-commercial vehicles and can be used at around 1,150 toll plazas nationwide. In terms of taxation, March 31 marks the last day for taxpayers to make investments under the old tax regime to claim deductions. Under Section 80C, individuals can invest up to ₹1.5 lakh in instruments such as Public Provident Fund (PPF) and life insurance to avail tax benefits. Furthermore, under Section 80D, deductions of up to ₹1 lakh are available on health insurance premiums and medical expenses. Investments made on or after April 1 will be considered for the next financial year. A new income tax framework will also come into force from April 1. As per the recently notified Income Tax Rules 2026, the new Income Tax Act 2025 aims to simplify compliance by introducing the concept of a “tax year” instead of distinguishing between financial year and assessment year. However, despite this structural change, there has been no revision in income tax slabs under either the old or the new tax regime. The new tax regime will continue as the default option, encouraging taxpayers to adopt a simplified structure with fewer deductions. Changes are also being introduced in banking services. ATM transactions will now have a limited number of free withdrawals, after which charges will apply. For instance, after five free transactions at certain bank ATMs, a fee of ₹23 per transaction will be charged for cash withdrawals. To keep government savings schemes such as PPF, National Pension System (NPS), and Sukanya Samriddhi Yojana (SSY) active, account holders must deposit a minimum amount ranging between ₹250 and ₹500 annually. Failure to maintain the required balance may lead to account deactivation, which can be reactivated only after paying a penalty. Salaried individuals are required to submit proof of investments to their employers, including rent receipts, insurance premium receipts, and home loan interest certificates. Failure to submit these documents on time may result in higher TDS deductions from their salaries, which can only be reclaimed after filing income tax returns. Railway passengers will also be affected by revised ticket cancellation rules from April 1. Tickets cancelled between 8 and 24 hours before departure will be eligible for a 50 percent refund. If cancelled between 24 and 72 hours before departure, a 25 percent deduction will apply. Tickets cancelled more than 72 hours in advance will receive the maximum refund, subject to a flat cancellation fee. Additionally, passengers will now be allowed to change their boarding point up to 30 minutes before the scheduled departure time, providing greater flexibility, especially in cities with multiple railway stations. Changes have also been announced regarding PAN card applications. From April 1, Aadhaar alone will no longer be sufficient to apply for a PAN card. Applicants will be required to submit additional documents such as a birth certificate, voter ID, Class 10 marksheet, passport, driving licence, or an affidavit issued by a magistrate. This follows the discontinuation of the Aadhaar-only application facility after March 31, 2026.