New Income Tax Rules 2026: HRA, Form 16, PAN & More Key Changes Explained

• The Income-tax Act, 2025, replaces the 1961 Act from April 1, aiming for simpler, more predictable tax laws.
• HRA benefits expand to Bengaluru, Hyderabad, Pune, Ahmedabad (50%), with mandatory Form 124 for claims.
• Form 130 replaces Form 16, offering detailed salary, TDS, and deduction summaries; previous employer tax regime disclosure is required.
• Children's education allowance rises to Rs 3,000/month/child, hostel allowance to Rs 9,000/month/child (up to two).
• PAN is now mandatory for cash transactions over Rs 10 lakh, motor vehicle purchases over Rs 5 lakh, hotel bills over Rs 1 lakh, and property transactions over Rs 20 lakh.