Major financial overhaul begins April 1 as India enters FY27.

Major financial overhaul begins April 1 as India enters FY27. The new Income Tax Act 2025 replaces the 60-year-old 1961 Act, simplifying terminology by merging Assessment Year and Previous Year into a single Tax Year concept. Significant labour law reforms will impact in-hand salaries, gratuity calculations, and full final settlements for millions of salaried employees and business owners. PAN application rules are tightening substantially. Corporate loan taxation changes now apply to below-market interest rates based on SBI lending benchmarks, though loans under 2 lakh rupees and medical emergency borrowing remain exempt. Meal card benefits increase to 200 rupees per meal tax-free, while corporate gift cards and coupons up to 15,000 rupees annually gain tax exemption under the old tax regime.