Several financial rules are changing from June 1, affecting everything from tax payments and UPI transactions to LPG usage and property-related compliances. Taxpayers face an important advance tax deadline this month, while new banking, PAN and solar regulations could impact millions of consumers. Here’s what you need to know about the major changes taking effect in June.
Advance tax deadline under new income tax framework
One of the most important dates this month is June 15, which marks the deadline for the first advance tax instalment for the financial year 2026-27.
Taxpayers with an estimated net tax liability exceeding Rs 10,000 must pay 15 per cent of their advance tax by this date. Failure to do so may attract interest at 1 per cent per month.
This is also the first advance tax cycle to operate fully under the Income Tax Act 2025 and the Income Tax Rules 2026, making it a key compliance milestone for taxpayers.
Higher exemptions for salaried employees
Salaried individuals opting for the old tax regime will see higher exemption limits from this financial year.
The Children Education Allowance exemption has increased from Rs 100 to Rs 3,000 per month per child. The hostel allowance exemption has also been raised to Rs 9,000 per month.
In addition, Bengaluru, Pune, Hyderabad and Ahmedabad have been added to the 50 per cent House Rent Allowance (HRA) exemption category, potentially increasing tax benefits for eligible employees.
UPI payments get a major security upgrade
Digital payments are becoming more secure with a new verification feature introduced by the National Payments Corporation of India (NPCI).
When users scan a QR code or enter a mobile number while making a payment, UPI applications will display the recipient’s verified bank-registered name. This replaces customised aliases and unverified display names that fraudsters have often used to mislead users.
The move is expected to improve transparency and help consumers verify beneficiaries before transferring money.
New LPG rules for households with PNG connections
The government is stepping up efforts to promote Piped Natural Gas (PNG) adoption across urban areas.
Under revised LPG guidelines, households with active PNG connections may face restrictions on retaining domestic LPG connections at the same address. Oil marketing companies have started identifying households using both services simultaneously.
The move is aimed at curbing misuse, hoarding and diversion of subsidised LPG cylinders. Consumers who surrender LPG connections after switching to PNG will, however, be allowed to reactivate them later if they move to areas without PNG access.
PAN rules change for property transactions
Several PAN-related compliance requirements are also being revised under the updated framework.
The threshold for certain transactions requiring PAN has been increased, including property-related transactions in specific cases. However, stricter reporting requirements remain in place for high-value deals.
PAN will continue to be mandatory for property transactions above Rs 45 lakh, gift deeds and joint development agreements. Annual cash withdrawals exceeding Rs 10 lakh will also trigger reporting requirements.
Small savings rates remain unchanged
The government has kept interest rates on major small savings schemes unchanged for the current quarter.
The Public Provident Fund (PPF) will continue to offer 7.1 per cent interest, while the Sukanya Samriddhi Yojana will provide 8.2 per cent.
The decision provides stability for conservative savers amid broader financial and regulatory changes.
New solar rules kick in from June 1
India’s solar sector is also witnessing a major compliance change.
From June 1, all government-backed, subsidised and net-metered solar projects must use modules listed under the Approved List of Models and Manufacturers (ALMM).
The government has ruled out any further extensions to the deadline. While the move is expected to strengthen domestic manufacturing standards and quality control, industry experts believe it could temporarily increase installation costs for some consumers.
What these changes mean for you
With multiple financial rules taking effect simultaneously, consumers should review their tax obligations, stay alert while making UPI payments and familiarise themselves with updated banking and compliance requirements.
Households using LPG and PNG services should also check whether the new guidelines affect their existing connections, while property buyers and solar project owners may need to understand revised compliance norms.
