US gas prices cross $4/gallon for first time since 2022; Iran war drives global spike
US gasoline prices have crossed $4 per gallon for the first time since 2022, as the ongoing Iran war continues to disrupt global oil supplies and push up fuel costs.According to the American Automobile Association (AAA), the national average price for regular gasoline stood at $4.02 per gallon on Tuesday — more than $1 higher than levels seen before the conflict began on February 28.The last time US consumers faced such prices was nearly four years ago, in the aftermath of Russia’s invasion of Ukraine. Watch ‘Global Oil Crisis May Push India Closer To Iran’: US Expert Robert Pape Hints Big Diplomatic Shift Fuel prices vary across states depending on supply dynamics and local taxes, with some regions already witnessing higher-than-average rates.The surge has been driven by sharp increases in crude oil prices–the primary input for gasoline– amid supply chain disruptions and production cuts across the Middle East following the escalation of hostilities involving the US, Israel and Iran.The price shock is global in nature. In Paris, for instance, gasoline is priced at 2.34 euros per litre ($2.68), translating to about $10.27 per gallon.Rising fuel costs add to inflation pressuresHigher fuel prices are adding to cost-of-living pressures for households and raising operating costs for businesses.As spending on essentials such as fuel increases, consumers may be forced to cut back on discretionary purchases. Analysts warn that the ripple effects could extend to groceries and everyday goods as transportation costs rise.Logistics and delivery services are already feeling the impact. The United Postal Service is seeking a temporary 8 per cent surcharge on services including Priority Mail.Diesel prices — critical for freight movement– have also surged, with the national average reaching $5.45 per gallon, up from about $3.76 before the war, according to AAA.If the conflict persists, prices could climb further as disruptions continue in the Strait of Hormuz, through which roughly one-fifth of global oil supply typically passes.With tanker movements constrained and energy infrastructure targeted in the conflict, supply concerns have intensified.Policy steps to ease pressureIn response, the International Energy Agency has pledged to release 400 million barrels of oil from emergency reserves of member nations, including the US.The Trump administration has also eased sanctions to allow additional oil supply from Venezuela and temporarily from Russia. It has further waived maritime shipping requirements under the Jones Act for 60 days to improve logistics.However, it remains uncertain how quickly these measures will translate into relief at the pump, as refineries typically process crude purchased earlier at higher prices.Seasonal factors are also contributing to the rise. Increased travel demand and the shift to costlier summer-blend fuel are adding upward pressure on prices.Global market dynamics keep US exposedDespite being a net oil exporter, the US remains sensitive to global price movements.Oil is traded globally, and while the US produces largely light, sweet crude, many refineries are configured to process heavier, sour crude, necessitating imports.Geopolitical shocks have historically driven sharp increases in fuel prices. In June 2022, US gasoline prices had surged above $5 per gallon following the Ukraine war.While prices later moderated, they had remained below $4 per gallon since mid-August 2022 until the latest spike, according to AAA data.
Dubai rolls out AED 1 billion incentives; fee deferrals, policy support to cushion war-led disruptions
Dubai has announced a package of economic measures, including incentives worth AED 1 billion, to support businesses and individuals over the next three to six months amid global supply disruptions linked to the ongoing West Asia conflict.The initiatives, approved by the Executive Council of Dubai in a meeting chaired by Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, will come into effect from April 1, PTI reported.The measures aim to ease financial pressures across sectors, promote trade and investment, and strengthen workforce support systems as economies grapple with disruptions caused by the war involving the US, Israel and Iran.As part of the package, the government will defer payment of certain fees for three months. Hotels will also be allowed to postpone payment of 100 per cent of sales-related fees and Tourism Dirham for the same period to improve liquidity in the hospitality and tourism sectors.A total of AED 1 billion in economic incentives will be implemented over three to six months starting April 1, 2026.In addition, Dubai will streamline the issuance and renewal of residency permits, making it easier for skilled professionals to live and work in the emirate.“Dubai has earned a reputation for credibility, transparency, and trust among businesses and investors worldwide, and stands ready to meet any challenge through the determination of its people and the strength of its inclusive society,” Sheikh Hamdan said.He added that the Executive Council approved five key initiatives, including the AED 1 billion incentive package, updated GDP measurement methodology, the Virtual Warehouses Initiative, the Dubai Empowerment Strategy, and a new Health and Safety Strategy for Workers’ Accommodation.The health and safety initiative aims to improve living and working conditions, targeting 100 per cent access to essential services and full compliance with safety regulations in workers’ accommodations by 2033. It aligns with the Dubai 2040 Urban Master Plan and International Labour Organization standards.The council also reviewed Dubai’s economic performance, noting a 6.4 per cent growth in the fourth quarter of 2025 and an overall GDP expansion of 5.4 per cent for the year, with the economy reaching AED 937 billion.An updated methodology for measuring GDP has also been approved, expanding survey coverage and improving data accuracy to better reflect economic activity.Meanwhile, the Virtual Warehouses Initiative is expected to facilitate smoother movement of goods through temporary import mechanisms. The scheme allows duty-free import of artworks under specific conditions, removes geographical restrictions, simplifies extensions, and introduces digital tracking.The move is aimed at strengthening Dubai’s position as a global hub for trade, investment and high-value sectors, while providing immediate relief to businesses navigating current economic challenges.
Vedanta tells Supreme Court its revised Jaypee bid tops Adani offer
Mining billionaire Anil Agarwal’s Vedanta Ltd has told the Supreme Court that its tweaked bid for the bankrupt Jaiprakash Associates Ltd was rejected despite being better than Adani Group’s offer.In its petition challenging the lenders’ decision to accept Adani’s takeover offer, Vedanta contended that its addendum bid is about Rs 3,400 crore higher in gross value terms and roughly Rs 500 crore more in net present value compared to the Adani Group’s offer.In the bid challenge process and final resolution plan submitted on October 14, 2025, Vedanta offered Rs 3,770 in upfront payment and Rs 3,100 crore at the end of the 365th day from the effective date to secured financial creditors. It also offered an equity infusion of Rs 400 crore into Jaypee.Thereafter, on November 8, 2025, Vedanta submitted an addendum via email, offering to raise the upfront cash payout to Rs 6,563 crore and equity infusion to Rs 800 crore while keeping the overall bid value at Rs 12,505.85 crore.The committee of creditors (CoC) accepted Adani’s bid because it offered around Rs 6,000 crore upfront cash payment and faster payments for the remaining amount within two years, compared to Vedanta’s longer payment timeline of up to five years.According to sources, Vedanta, in its petition before the Supreme Court, has alleged that lenders acted “arbitrarily” while rejecting its bid to acquire Jaiprakash Associates Ltd (JAL) and also questioned the role of the resolution professional in the ongoing insolvency process.Vedanta Ltd has also mentioned that the National Company Law Tribunal (NCLT) erred in appreciating that the commercial wisdom of lenders is not ‘absolute’ and therefore, the same can be set aside in cases of ‘arbitrariness, perverseness or capricious exercise’ of power.In November last year, the CoC of JAL, which went into insolvency in June 2024, approved the Rs 14,535 crore resolution plan of Adani Enterprises Ltd to acquire the debt-ridden Jaypee Group’s flagship firm that has a presence in many sectors, including cement, hospitality, power and real estate, among others.The grand total of Vedanta’s bid was Rs 17,926.21 crore, which included a Rs 1,200 crore payment towards settlement for sports city dues.Earlier this month, the NCLT approved the Adani bid. Vedanta moved the appellate tribunal NCLAT, which declined to stay the implementation of Adani’s bid. This forced Vedanta to approach the apex court the next day.In the petition, Vedanta Ltd has requested the apex court to pass an ex parte ad interim order staying the operation, implementation and effect of the order passed by the National Company Law Appellate Tribunal (NCLAT).In its petition, Vedanta Group has said Adani’s financial bid is substantially lower in value compared to its bid, which defeats the primary objective of value maximisation under the Insolvency & Bankruptcy Code.Vedanta group contended that the Allahabad bench of NCLT “erred in characterising the net present value differential” of Rs 500 crore as a “slightly higher amount” and the gross value differential of Rs 3,400 crore as capable of being overridden by subjective qualitative parameters.It further said the Evaluation Matrix, RFRP and Process Note relied on by the NCLT are instruments designed to achieve value maximisation and must be read harmoniously with the objectives of the Code.The NCLT has erred in not appreciating that the lack of transparency in the challenge process, particularly the failure to disclose the two identified criteria as per the Process Note, which vitiated the entire process, the mining conglomerate said.Moreover, the NCLT’s finding that there is no legislative intent for recording reasons by the CoC while approving or rejecting a resolution plan is erroneous and contrary to the settled law, the petitioner said.It further said CoC’s decision-making process lacked the requisite deliberation and reasoning in as much as the lenders abdicated their entire decision-making responsibility to an external consultant.The Vedanta group had also said that the appellate tribunal NCLAT has failed to appreciate that permitting the implementation of the resolution plan would result in ‘irreversible’ consequences.This includes the acquisition of shares of JAL by Adani Enterprises, transfer of management of the company, handover of key assets, and operational takeover, which will make its appeal ‘infructuous’.Moreover, the NCLAT has also failed to appreciate that the implementation of Adani’s resolution plan during the pendency of its appeal would lead to “creation of third-party rights”, including disbursement of upfront payments to creditors, which cannot be unwound.Besides, the NCLAT failed to appreciate that once the approved resolution plan is implemented, execution of next steps, such as acquisition of shares of JAL by Adani, payment to creditors, grant of statutory approvals, and assumption of control over the Corporate Debtor’s business and assets, would create a fait accompli, effectively reducing its appeal to a mere academic exercise.Moreover, the NCLAT failed to consider that the approved resolution plan of Adani Enterprises has provisions for time-bound implementation, and there is a real, well-founded apprehension that the successful bidder shall take “irreversible steps” towards the implementation that would render Vedanta’s appeal practically infructuous.Vedanta also said that the Resolution Professional of JAL ‘exceeded his neutral role’ by offering an opinion on the addendum and characterising it as violative of the Process Note, without providing the CoC with a proper opportunity for independent evaluation.
Indian business delegation visits China after five-year gap; focus on EV, clean energy ties
In a significant step following the recent thaw in bilateral ties, an Indian business delegation has travelled to China, marking the first such visit in over five years after relations were frozen due to the 2020 Eastern Ladakh military standoff.A delegation from the Punjab, Haryana, Delhi Chambers of Commerce and Industry (PHDCCI) is currently visiting Shanghai and Jiangsu province–one of China’s most industrialised regions–from March 29 to April 4, reported news agency PTI.The visit comes after India and China moved towards normalisation of ties last year, following engagements between Prime Minister Narendra Modi and Chinese President Xi Jinping in 2024 and 2025 on the sidelines of BRICS and SCO summits.During the visit, the Indian Consulate General in Shanghai, led by Pratik Mathur, hosted a Business Round Table with the PHDCCI delegation and leading companies and financial institutions from Eastern China.Welcoming the delegation, Mathur told PTI that India continues to be the world’s fastest-growing major economy with a young demographic profile, offering strong opportunities for global partnerships and investments.He highlighted emerging sectors such as New and Renewable Energy, Electric Vehicles (EVs), infrastructure, connectivity and information technology as key areas for collaboration.The visit aims to strengthen engagement between Indian businesses and their counterparts in Eastern China, particularly in Shanghai and the provinces of Zhejiang and Jiangsu, while encouraging new trade and investment partnerships.Apart from industrial discussions, the delegation is also engaging in technology partnerships and business-to-business (B2B) meetings to deepen cooperation.These interactions are aligned with India’s broader goal of strengthening domestic capabilities, fostering innovation and advancing its long-term vision of becoming a developed nation by 2047, according to a Consulate release.The roundtable saw participation from major Chinese firms and financial institutions, including HSBC and Wuxi Technology Development Corporation, reflecting interest in expanding cooperation with Indian companies.Representatives from European business groups also took part in the discussions, sharing perspectives on opportunities arising from the proposed India–European Union Free Trade Agreement.Participants underlined the importance of building resilient and sustainable global supply chains with a central role for Indian businesses.According to a brochure on the visit, the delegation is focusing on exploring partnerships in clean energy ecosystems, studying China’s advancements in electric mobility and battery technologies, and identifying investment and collaboration opportunities.The objectives include fostering B2B ties, visiting industrial and innovation parks, and understanding renewable integration and supply chain models.
Asia to face worst impact of Iran war energy crisis as Hormuz choke hits supplies, says Kpler
Asia is likely to face the worst impact of the ongoing Iran war and the resulting energy disruptions, with supply gaps emerging across key economies, global maritime analytics firm Kpler has warned, as reported AFP.“We think Asia will, for now, be the ones suffering the most,” Kpler president Jean Maynier told AFP in an interview at the company’s Singapore office.He said the region lacks sufficient domestic energy resources to offset supply disruptions caused by restricted flows through the Strait of Hormuz.“It will not be enough in China, it will not be enough to cover in big countries like the Philippines or Indonesia. So it’s a real energy crisis,” Maynier said.The disruption has already begun to show visible effects. Maynier pointed to the Philippines, where authorities have declared a national energy emergency amid tightening supplies.“It’s really bad for Asia and we are not optimistic if the event continues,” he said, adding, “We hope at some point that politicians will find a solution.”Kpler, a Brussels-based firm founded in 2014 that owns the MarineTraffic platform, tracks global commodity flows and shipping activity.Data from the firm shows a sharp decline in vessel movement through the Strait of Hormuz since the conflict escalated following US-Israel strikes on Iran on February 28.While 17 commodities vessels crossed the strait over the weekend — including 12 on Saturday — overall traffic remains significantly lower. As of 1700 GMT on Monday, only 196 commodities vessels had crossed the route this month, far below pre-war levels.Of these, 120 were oil tankers and gas carriers, with most shipments moving eastward out of the strait.The Strait of Hormuz is a critical artery for global energy trade, and continued disruption is expected to intensify supply constraints and price pressures, particularly for energy-import dependent Asian economies.
Govt notifies Finance Act 2026: New income tax rules, surcharge changes come into effect from April 1
The government has notified the Finance Act 2026, bringing into force the tax changes approved under the Union Budget for 2026-27, according to a gazette notification issued by the Ministry of Law and Justice.“The following Act of Parliament received the assent of the President on March 30, 2026 and is hereby published for general information,” the notification said.The Act gives legal effect to the Centre’s financial proposals for the upcoming fiscal year beginning April 1.Parliament had cleared the Finance Bill 2026 last week, with the Rajya Sabha returning it to the Lok Sabha by a voice vote after a brief discussion. The Lok Sabha had earlier passed the bill on March 25 along with 32 amendments, with Finance Minister Nirmala Sitharaman responding to members’ queries.Also Read: Your income tax changes from April 1, 2026! Top 10 things salaried taxpayers should know about new rules & tax regime choiceUnder the Budget 2026-27, total expenditure is pegged at Rs 53.47 lakh crore, marking a 7.7 per cent increase over the current fiscal ending March 31. Capital expenditure has been set at Rs 12.2 lakh crore.The government has projected gross tax revenues at Rs 44.04 lakh crore and gross borrowing at Rs 17.2 lakh crore, with the fiscal deficit estimated at 4.3 per cent of GDP for FY27, lower than 4.4 per cent in the current fiscal.Also Read: ITR filing AY 2026-27: Income Tax Return forms ITR-1 to ITR-7 notified; key changes, eligibility explainedAmong key tax changes, the Act introduces a flat 12 per cent surcharge on capital gains earned by individual and corporate shareholders from company share buybacks, effective April 1.The move is expected to increase the effective tax burden on such gains, replacing the earlier slab-based surcharge structure. At present, no surcharge is levied on taxable income up to Rs 50 lakh, while income between Rs 50 lakh and Rs 1 crore attracts a 10 per cent surcharge on capital gains from buybacks
ITR filing AY 2026-27: Income Tax Return forms ITR-1 to ITR-7 notified; key changes, eligibility explained
The government on March 30, 2026 notified Income Tax Return (ITR) forms ITR-1 to ITR-7 for the assessment year 2026-27, marking the start of the ITR filing season. Individuals, pensioners, professionals and other taxpayers can now file their returns using the applicable forms by July 31, 2026.A key change this year relates to ITR-1 (Sahaj), which now allows reporting of income from up to two house properties, easing compliance for a wider set of taxpayers.“One of the welcome change in ITR 1 is that Now ITR 1 can also be filed for income from “two house properties”. Earlier ITR 1 allowed reporting income from one house property only. So if you had two House property, you were required to file ITR 2 or ITR 3 which are more detailed form. With this change, taxpayers can find it easy to file ITR 1 and report their income from two houses,” said Chartered Accountant Ashish Niraj, Partner, A S N & Company, as quoted by ET. Who can file ITR-1 (Sahaj) ITR-1 can be used by individuals with relatively simple income profiles. However, it cannot be used if the taxpayer has: Profits and gains from business or profession Short-term capital gains Long-term capital gains under Section 112A exceeding Rs 1.25 lakh Income from more than one house property (earlier restriction, now relaxed to two houses) Income under “other sources” such as lottery winnings or racehorse activity Income taxable under special provisions like Sections 115BBDA or 115BBE Income to be apportioned under Section 5A Also Read: Your income tax changes from April 1, 2026! Top 10 things salaried taxpayers should know about new rules & tax regime choice Who should file ITR-2 ITR-2 is applicable for individuals or Hindu Undivided Families (HUFs) who: Are not eligible to file ITR-1 Do not have income from business or profession Do not earn income such as interest, salary, bonus or commission from a partnership firm Have income of spouse or minor child that needs to be clubbed Who cannot file ITR-2 ITR-2 cannot be used by individuals or HUFs who have income from business or profession, including income received from a partnership firm in the form of interest, salary, bonus, commission or remuneration.With forms now notified, taxpayers can begin preparations for filing returns, with the deadline for most individual filers set for July 31, 2026.
US-Iran war-linked disruptions hit UAE jobs, consumption; remittance risks for India
A month into the Gulf conflict, early economic strain is surfacing in the United Arab Emirates, with companies in hospitality, travel, events and food & beverage beginning to cut costs through layoffs, pay reductions and unpaid leave, according to an ET report.People tracking hiring trends said the adjustment has already started at the firm level and could broaden if hostilities continue. The conflict, which began on February 28, has disrupted travel flows and business activity across the region.“Job losses and salary reduction are already happening in some companies in the UAE since last week,” said Sarah Brooks, managing director, Fikrah HR. “It’s across many companies and industries unfortunately, some are hospitality, retail, and food & beverage.”For India, the shift carries a second-order impact: weaker employment conditions in the UAE could dent remittance inflows, a key support for the current account. The Gulf nation contributes roughly a fifth of India’s global remittances.Companies appear to be reverting to playbooks used during Covid-19—cutting variable costs while trying to retain staff. “They are providing unpaid and annual leaves, air tickets to facilitate team members travelling home. Fewer are being laid off, they are working to preserve employment knowing that business will return and the team would be needed in time,” Brooks said. Pressure concentrated in hospitality, events The initial shock has been most visible in customer-facing sectors. “About 60% of the impact is on the hospitality industry and the events segment, while the remaining 40% is spread across other sectors,” said Amruta Heblikar, founder, Virtual Key.“Salary reductions are already happening. In many companies, pay cuts range from about 20% to even 50%. The situation is getting worse by the day.”Several F&B operators are holding decisions on deeper cuts until mid-April, when they expect clearer visibility on demand.Even with a cessation of hostilities, recovery may lag. “Right now, businesses are not thinking about achieving revenue targets or budgets. It is more about survival,” Heblikar said, adding that a return to normalcy could take another quarter after the war ends.Company-level actions point to stress building beneath the surface: a five-star hotel in Dubai Marina recently let go of 300 employees; a cloud kitchen operator cut around 100 roles; a restaurant in Downtown Dubai reportedly reduced headcount; and another F&B chain halved salaries, asking staff to accept revised pay or exit. Spending slows, tourism takes the biggest hit Transaction data suggests a broad-based cooling in demand. Biz2X estimates overall consumption has fallen 25–30% since the conflict began.“The steepest decline has been in tourism, travel, hotels and high-end restaurants, where transactions have fallen by as much as 60%,” said Rohit Arora, CEO and co-founder, Biz2X and Biz2Credit.Redseer Middle East said discretionary consumption has also weakened. “There is no domestic offset for a $59 billion inbound tourist economy. Physical F&B is caught in the middle,” said managing director Sandeep Ganediwalla. “About 20% of residents have cut spending on dining, while tourist-driven footfall in premium restaurant clusters has also declined.”He added that categories such as electronics, furniture and apparel have seen a 35–38% drop, signalling stress in non-essential retail. Investment-linked sectors begin to feel the pinch The slowdown is spilling into real estate and business services that depend on new company formation. “Another major area being hit is real estate and business setup companies,” said an HR executive. “I work closely with two large corporate service providers in Dubai, each employing around 300–400 people. They have started laying off staff or sending employees on reduced pay.”With fresh investor inflows drying up, commissions have stalled and, in some cases, salaries have been cut by about 50%, the person said.Industry executives said events have largely been put on hold for the next three to four months, removing a key source of demand for hospitality and ancillary services.As uncertainty persists, firms across sectors are shifting from growth plans to cash preservation, with labour adjustments emerging as the first visible sign of a broader economic slowdown.
IndiGo appoints former British Airways chief William Walsh as new CEO
William Walsh (File photo) NEW DELHI: IndiGo airlines on Tuesday announced the appointment of former British Airways chief William Walsh as new CEO. This comes after Pieter Elbers resigned earlier this month after major operational crisis faced by the aviation operator in December last year.“The Board of IndiGo announces the appointment of William Walsh as Chief Executive Officers National 31′ March, 2026: The Board of InterGlobe Aviation Limited (IndiGo) today appointed Mr. William Walsh as the Chief Executive Officer, subject to Regulatory approvals. Mr. Walsh’s tenure at IATA comes to a close on the 31″ of July, 2026, and he is expected to join no later than on the 3′ of August, 2026,” said IndiGo in an official statement.“I am delighted to have the opportunity to lead IndiGo. The airline has a strong foundation, a compelling vision and an exceptional reputation. What stands out most to me are its people, their passion, professionalism and commitment. The aviation landscape is evolving rapidly, and IndiGo is well-positioned to be at the forefront of this change. I look forward to partnering with colleagues across the organisation to build a culture of excellence, innovation, collaboration and sustainable value for all stakeholders,” said Walsh, reacting to the appointment.Adding to the announcement, Rahul Sheila, Managing Director of IndiGo said, “As we enter a new phase of transformation and growth, I am delighted to welcome Willie to IndiGo. He is an iconic and accomplished aviation leader and brings a rare combination of global perspective, operational expertise of having built strong customer-focused airlines, deep industry experience and a values driven leadership, making him exceptionally suited to lead IndiGo at this pivotal cusp of growth.“Walsh is succeeding Elbers who resigned from the airline on March 10 with immediate effect, three month after the airline’s unprecedented domestic schedule collapse that had left lakhs of passengers stranded at airports across its network. Airline founder & MD Rahul Bhatia became the interim CEO. Who is William Walsh? Willie Walsh, popularly known as Willie, is a veteran aviation executive with over four decades of experience in the airline industry. He began his career as a cadet pilot with Aer Lingus in 1979 and went on to hold senior operational and leadership roles, including chief operating officer, before becoming chief executive of the airline from 2001 to 2005. He later served as chief executive of British Airways from 2005 to 2011, where he led the carrier through the global financial crisis. Walsh subsequently became the founding Chief Executive of International Airlines Group (IAG), the parent company of airlines including Aer Lingus, British Airways, Iberia, Level and Vueling, serving in the role from 2011 until 2020. Since April 2021, Walsh has been the Director General of the International Air Transport Association (IATA), becoming the eighth person to hold the position. In this role, he has represented global airline industry interests on issues ranging from regulation and sustainability to post-pandemic recovery.
Your income tax changes from April 1, 2026! Top 10 things salaried taxpayers should know about new rules & tax regime choice
Revamp of the Income Tax Rules, 2026 is likely to have a meaningful impact on taxpayers. (AI image) April 1, 2026 not just signals the start of the new financial year 2026-27, but this time also brings with it a new set of income tax rules. The New Income Tax Rules 2026, based on the Income Tax Act 2025, have several changes that salaried taxpayers should be aware of. Your exemption limits are changing – hence the math behind the choice of the new and old income tax regime is also changing.Beyond that, the language of the Income Tax Act has been simplified and several common sections and forms have been renamed, which is important to know when filing tax returns.According to Kuldip Kumar, Partner, Mainstay Tax Advisors, the use of simpler language and the rearrangement of sections are expected to make the law more streamlined and less complicated for taxpayers. “Taxpayers will now need to familiarise themselves with renumbered sections such as 80C, 80D, etc., which they have long remembered by heart. Greater linkage of information in return forms, along with changes in various reporting requirements, is also set to tighten compliance,” Kuldip Kumar told TOI. The amendments introduced through the Finance Bill 2026, along with the revamp of the Income Tax Rules, 2026—where the limits for several exemptions and deductions have been enhanced—are likely to have a meaningful impact on taxpayers, depending on their individual circumstances, he added.He notes that several changes—such as the enhancement of the free meal limit and the extension of this benefit to those under the new regime, as well and the increase in reimbursement limits for car running and maintenance expenses for employees using their own cars for both official and personal purposes—are expected to reduce the tax burden for the salaried class in general.We take a look at top 10 things salaried taxpayers should know going into the new financial year 2026-27:1. Tax Slabs Remain the SameThe income tax slabs and income tax rates under both the new and old income tax regime remain the same. The old tax regime continues to offer several deductions and exemptions but with higher tax rates at lower income levels, and the new tax regime has almost negligible exemptions but much lower income tax rates at higher income levels. Income Tax Slab Income Tax Rate 0-2.5 lakh Nil 2.5-5 lakh 5% 5-10 lakh 20% Above 10 lakh 30% Old Tax Regime Slabs For Individuals Up To 60 Years of AgeBut while the tax slabs remain the same, several changes in the exemption limits under the old income tax regime may change your decision on which regime to opt for. In certain cases, with higher exemption limits under the new income tax rules, the old regime again becomes lucrative. Income Tax Slab Income Tax Rate 0-4 lakh Nil 4-8 lakh 5% 8-12 lakh 10% 12-16 lakh 15% 16-20 lakh 20% 20-24 lakh 25% Above 24 lakh 30% New Tax Regime SlabsWe explain that in detail at the end of this article, but first we take a look at the top changes2. Expansion of 50% HRA benefits to more citiesHouse Rent Allowance or HRA is a common exemption availed by taxpayers under the old income tax regime. How is HRA calculated? It’s the least of the three amounts; actual HRA received, rent paid minus 10% of salary, and 50%/40% of salary.So, what has changed under the new income tax rules? The list of metro cities that are allowed for the 50% of salary calculation has been expanded. Earlier, only those living in Delhi, Mumbai, Kolkata, and Chennai could avail the 50% limit. Now, the list includes Bengaluru, Hyderabad, Pune, and Ahmedabad.Parizad Sirwalla, Partner and Head – Global Mobility Services, Tax, KPMG in India calls the move a welcome step, particularly given the rise in housing costs across emerging urban cities. “By bringing cities such as Bengaluru, Hyderabad, Pune and Ahmedabad at par with traditional metros for HRA computation, the proposal provides meaningful tax relief to salaried individuals residing in these locations,” she tells TOI.The tax expert points out that the exemption will continue to be subject to existing conditions such as actual rent paid and salary structure. Taxpayers should therefore review their compensation structure and HRA claims to benefit from the revised provisions, proposed to take effect from 1 April 2026, she advises.Amarpal Chadha, Tax Partner, EY India tells TOI, “The revision in HRA exemption limits is a welcome move to keep pace with inflation. Extending the higher 50% HRA exemption to cities like Bengaluru, Pune, Hyderabad and Ahmedabad from the earlier 40% will meaningfully benefit salaried taxpayers opting for the old tax regime, where housing remains a significant expense.”3. Big Hike In Education, Hostel AllowanceThis one is a relief for parents – both in terms of an increase in education and hostel allowance. Effective FY 2026-27, the exemption limit for children education allowance has been increased from Rs 100 per month per child to Rs 3,000 per month per child.At the same time, for hostel expenditure, the exemption limit has been hiked from Rs 300 per month per child to Rs 9,000 per month per child. These two exemptions can be availed for up to two children.It’s important to note that these exemptions continue to be available only under the old income tax regime.4. PAN Card Quoting RequirementsUnder the new income tax rules, the requirement of quoting your PAN Card has undergone several changes. Below is a list of the changes that you should be aware of:Fundamentally, the changes to PAN usage and application signal a continued push by the government towards ease of compliance, targeted information collection and strengthening the digital tax ecosystem, says Parizad Sirwalla. By enhancing transaction limits and curtailing the scope of compulsory PAN quoting requirement, such as moving from daily to annual transaction thresholds (e.g. cash deposit/ withdrawal etc.) and increasing the limits for mandatory quoting in specified transactions (such as hospitality/event expenditures, purchase of motor vehicle/ property etc.), the aim
