In the next month, a number of changes are proposed to be introduced in respect of taxation, digital finance, banking, power and new investments in solar infrastructure. First payment of advance tax under the new Income Tax Act 2025 is to be made by taxpayers. Also, salary and fixed income individuals would require to adapt to their tax free allowances which have been changed under the old tax regime. In the field of digital finance, verified names of UPI recipients are to be displayed. Payment through UPI is also proposed to be made easier for users of provident fund services of Employee’s Provident Fund Organization (EPFO). Customers of traditional finance would require to pay higher service charges. New mandates of solar infrastructure and cash transactions and revised PAN limits for purchase and sale of properties are proposed to be made effective requiring large number of investors and citizens to comply.
Tax Deadlines and Structural Reforms
The first advance tax for the financial year 2026-27 is required to be deposited by 15th June 2026. All individuals having estimated net tax liability exceeding Rupees 10,000 are required to pay 15% of their advance tax. This will be the first advance tax cycle to be computed entirely under the provisions of the newly introduced Income Tax Act, 2025 read with the Income Tax Rules, 2026. If the said tax is not deposited in time, interest @ 1% per month will be charged thereon.
New Relief for Children, For Salaried Individuals New Slabs and Rates under the old tax regime for Children Education Allowance have been hiked and as per the new Slabs and Rates, Children Education Allowance shall now be of Rs. 3,000 per month per child. Similarly, Hostel Expenditure Allowance has also seen an upsurge in new Slabs and Rates, and as per the new Slabs and Rates, Allowance for Hostel Expenditure shall now be of Rs. 9,000 per month. The four cities of Bengaluru, Pune, Hyderabad and Ahmedabad have been added to the list of 50% HRA (House Rent Allowance) exemption for salaried Individuals.
Smarter Digital Payments and Banking Adjustments
Fraudsters are consistently coming up with new ways of duping customers using digital platforms. In order to carry out transactions safely and securely, National Payments Corporation of India (NPCI), the umbrella organization that manages various payment systems in the country including UPI has implemented a change. As of now, when a user scans a QR code or enters a UPI ID / Mobile Number to carry out a transaction, they are greeted with an unknown alias created by the recipient. The alias could be anything like ‘dad ka purse’, ‘Aravind’s pizza’ etc. The change that has been implemented recently by NPCI shows the verified name of the recipient as registered with his bank while making a payment through QR Code / UPI ID / Mobile Number. Verified names of recipient will now be displayed when a user is making payment through QR Code / UPI ID / Mobile Number.
While cash withdrawal, mini statement and balance inquiry through ATMs of banks would be costlier, details of service charges have not been revealed by banks yet.
Energy Prices and Domestic Revisions
The interest rates on small savings schemes like Public Provident Fund (PPF), Senior Citizens’ Savings Scheme, Sukanya Samriddhi Yojana and others have not been changed in the current quarter by the Finance Ministry. Meanwhile, the Oil Marketing Companies (OMCs) have revised the rates of LPG (Cylinders), CNG & PNG for the month of June. The rate of commercial 19kg LPG cylinders had increased steeply in the last month. The market is expecting increase in rates of all LPG cylinders this month as well.
New PAN Mandates and Solar Policies
PAN not Mandatory for Cash Transactions up to Rs. 50,000/-. In view of recently introduced Tax Amendment Laws 2026, there shall be no requirement of quoting Permanent Account Number (PAN) by taxpayer on making cash deposit up to Rs. 50,000/-. Amendment also provides that PAN shall not be required to be quoted by buyer on sale of immovable property for consideration equal to or less than Rs. 20 Lakhs. However, as per the said amendment, PAN shall be mandatory for sale of immovable property if the consideration thereof is exceeding Rs. 45 Lakhs. It is also clarified that PAN shall be mandatory for gift deeds and joint development agreements, irrespective of the amount of consideration thereof. Furthermore, cash withdrawals exceeding Rs. 10 Lakhs from bank accounts shall be reported by bank to the tax department on quarterly basis.
The rules for the clean energy transition have also become stricter. As of 1 June 2026, only solar modules that are listed in the Approved List of Models and Manufacturers (ALMM) of solar modules manufactured in India shall be allowed for new installations of solar power systems. These restrictions shall not apply to existing restrictions on use of solar modules and no further extensions shall be granted. The restrictions on use of solar modules are meant to ensure high quality in the manufacture of in India made solar modules in the short run; these may result in higher cost of new installations of solar power systems promoted by government, subsidized or which are put on net metering.
