Financial Changes from April 1: ATF Clarified, LPG, Tax Rules Updated

Financial Changes from April 1 include ATF price clarification, LPG hike, tax reforms and new banking rules impacting daily life across India

Key Changes Begin

The new financial year has commenced with a wide range of financial changes from April 1 affecting households, businesses and investors, even as the Centre clarified confusion around aviation fuel pricing.

According to government officials, Aviation Turbine Fuel (ATF) prices for domestic airlines have been increased by 8.6 per cent to around ₹1.04 lakh per kilolitre. The reported doubling of prices to over ₹2.07 lakh per kilolitre applies only to non-scheduled, charter and ad-hoc operators.

The clarification comes amid concerns over rising travel costs and forms part of a broader set of economic adjustments rolled out at the start of the fiscal year.

Fuel Price Clarity

Officials stated that ATF price revisions announced for metro cities reflect separate pricing categories. For non-scheduled operators, rates have crossed ₹2 lakh per kilolitre in cities such as Delhi, Kolkata, Mumbai and Chennai.

For domestic carriers, however, the increase remains moderate, easing immediate fears of a steep spike in airfare. Industry sources indicated that airlines may still review fares depending on operational costs.

LPG, Travel Impact

Oil marketing companies have raised the price of commercial LPG cylinders by up to ₹218. In Delhi, the price now stands at ₹2,078.50, while Chennai has recorded rates above ₹2,246.

Domestic LPG cylinder prices remain unchanged.

The hike is expected to push up operating costs for restaurants and catering services, which may eventually be passed on to consumers. Analysts say this could marginally impact food inflation in the coming months.

Rail, Toll Updates

The Ministry of Railways has revised ticket cancellation rules. Passengers can now cancel tickets only up to eight hours before departure, compared to four hours earlier.

Authorities said the move aims to reduce last-minute cancellations and improve seat availability for waitlisted passengers.

On highways, toll collection has gone fully digital. Cash payments have been discontinued nationwide, with FASTag and UPI becoming mandatory. The annual FASTag pass has also been increased by 2.5 per cent to ₹3,075.

Tax System Overhaul

Significant tax-related reforms have also taken effect.

Under the new Income Tax framework, the term “Tax Year” replaces both “Financial Year” and “Assessment Year”, a move aimed at simplifying compliance.

Returns filed this year will follow revised tax slabs introduced earlier. Salaried taxpayers can claim rebates up to ₹12.75 lakh under Section 87A, while others can avail exemptions up to ₹12 lakh, as per official guidelines.

Additionally, new Forms 130 and 131 have replaced Form 16 and 16A, providing more detailed disclosures to reduce filing errors.

Banking, Market Rules

In the banking sector, Punjab National Bank has introduced new daily ATM withdrawal limits—₹25,000 for Classic cards and ₹50,000 for Platinum cards—to curb fraudulent transactions.

Market participants will also face higher trading costs, with Securities Transaction Tax (STT) on futures increased to 0.05 per cent and on options premiums to 0.15 per cent.

Changes have also been made to sovereign gold bond taxation. Only bonds purchased directly from the RBI will qualify for tax exemption on maturity, while secondary market purchases will attract capital gains tax.

Employment, Salary Shift

New labour rules mandate that basic salary must account for at least 50 per cent of total cost-to-company (CTC). While this may reduce take-home pay, it is expected to enhance long-term benefits such as provident fund and gratuity.

Companies are now also required to complete full and final settlements within two working days of an employee’s last working day, a sharp reduction from the earlier 90-day window.

What Lies Ahead

The financial changes from April 1 reflect a mix of regulatory tightening and structural reforms aimed at improving transparency and compliance across sectors.

While some measures may increase short-term costs for consumers and businesses, officials maintain that the long-term impact will support efficiency and financial discipline.

As per experts, the coming months will determine how these changes influence inflation, consumer spending and market sentiment, making this a closely watched phase in India’s economic cycle.