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India’s new Income Tax rules effective from April 1, 2026 bring 11 major changes that could directly impact your salary, ITR filing, and tax savings. In this exclusive interview, Sharad Kohli explains the shift from Assessment Year to Tax Year, revised deadlines, TCS cuts, and increased exemptions. Watch the full video to understand what these changes mean for your finances and how to plan smarter.

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Transcript
00:04Hello and welcome, I am here with Good Returns, I am here with you and I am here with you.
00:08Today is April 2026 and there is a lot of things changed in the country in the financial system.
00:14Here you will have a very big impact on your income tax rules.
00:20What do you think about this income tax rule?
00:25What do you think about this?
00:25What do you think about your salary?
00:28This is also a big question.
00:29We will address these concerns with Sharat Kohli.
00:33Welcome to Good Returns.
00:35Thank you so much, Arniva. Good Returns of all followers, viewers and subscribers.
00:38First question is about the new income tax rules.
00:43What do you need to change?
00:45What do you need to change?
00:47Is everything changed for a salaried employee?
00:50You want to understand a little detail if you can decode this.
00:54Absolutely, Arniva.
00:55In 1961, the income tax act was running.
01:00It was 65 years old.
01:02It was very bulky.
01:04There were so many amendments.
01:05There were subsections, section, provisos.
01:08There were a lot of things.
01:09There were 800 subsections.
01:13There were 6 months from the council.
01:14There were so many provisions that were supposed to be called the father of Adam.
01:19So I think that we need to rewrite them.
01:21And that was very complicated.
01:23There was a lot of a tax credit.
01:25There was a lot of confidence to study.
01:27Experts also had to study 2 or 3 times for it to understand.
01:30I think it was remap.
01:32In 2025, there was a new income tax tax act in 2025.
01:35And in 2026, the rules were brought up.
01:37First, the rules were 1961.
01:38The rules were 1961, the rules were 1962 and the act was 1961. Now the act is 20-25 and
01:44the rules are 20-26.
01:45So this is the 1st April, that means that it has been effective today. And you will see this impact
01:52in the next year,
01:53when people will do tax calculations within it, their different cases will be filed, sections will be applied,
02:00then you will see this impact in the next year. But yes, this year the income related activities,
02:05there are movements, exemptions, deductions, their names have changed, sections have changed.
02:10I give them a very popular provision, which was ATC.
02:14You remember every taxpayer who knows what ATC is,
02:17which is 1.5 lakh rupees is now in the old regime.
02:21There are insurance premiums, PPF, NSC, etc.
02:25Now the section is 1-2-3.
02:29So the section is 1-2-3.
02:30So the sections are very popular,
02:34the sections are changed again, because there is a new act.
02:38There are 800 sections above sections.
02:40In this new section, there are 500 sections above sections.
02:43So this is a little bit of a book, but it has also changed.
02:47And it has been simplified.
02:48There are more tables.
02:49There are many provisions in the table form, rules form, annexures form form.
02:55And the luxury is that it will be simple to keep it.
02:58Because people, when they have a small part of the act,
03:00when they had to study the act, they had to go to the experts.
03:03They had to go to the charter department,
03:04a tax lawyer.
03:06So now I think that the professionals will only be complicated cases.
03:09Because the act is easy to study the act.
03:12In this act, there are many complications.
03:15So now we have to look at the 31 March 2026,
03:20which you have to file the returns.
03:22You have to go to the old act.
03:24Like I said,
03:25that the income activity of today will be the new rules and new act.
03:31If you have to change the rules,
03:34you'll see the thing that is necessary to understand.
03:38The structure of tax, the whole system,
03:42there's no change.
03:43People think that the tax system will always be changing.
03:46They're going to have no change.
03:46It's just the new act.
03:47So you have to understand the things and the form of changes.
03:49Understand that the clothes are changing,
03:51but the reality is.
03:52Understand that if someone has a new clothes,
03:55or you have to wear a new clothes,
03:55or you have to wear a new clothes,
03:56then it's not only the act.
03:59They're going to change the above.
03:59but basically the tax system has no change in it.
04:03That is absolutely the same.
04:04That is the old regime, that is the new regime.
04:06Now, some provisions are brought together with this new act.
04:09Like if you had 5,000 rupees for a year for employer,
04:14now it would be 15,000 rupees.
04:16Another very outdated provision was made.
04:19Children's allowance, two children,
04:20100 rupees per month you get an exemption for tuition fees.
04:26I don't know which school is 100 rupees.
04:28Unless we are in the government school.
04:31Now it has 3,000 rupees.
04:34There will be changes in this kind.
04:35There are some outdated provisions.
04:38I will tell you,
04:40the provisions will be changed in finance.
04:44These provisions will be changed in this act.
04:47Every year they are allowed.
04:49The new act is simplification.
04:51It is easy to read, it is easy to follow.
04:54And to reduce the bulk of the act.
04:56Because it is a very bulky act.
04:58This is the intention of this act.
05:00The new rules are the benefits of salaried employees.
05:02Do you get some special benefits for individuals?
05:07Look, as I said, employees,
05:09like if employees get 5,000 rupees,
05:12they will get 15,000 rupees.
05:13If employees get 100 rupees,
05:15there are two children,
05:16they have children's education allowance.
05:18They are talking about old regime.
05:20So, they can have 3,000 rupees every child.
05:23Up to two children.
05:24They have been getting 2,000 rupees.
05:26And they have a concessional loan benefit.
05:29They have 20,000 rupees.
05:29They have 2,000 rupees.
05:30If you give them a lawyer.
05:31The other thing is,
05:32I'm going to tell you,
05:35I'm going to tell you,
05:36I'm going to tell you,
05:36that the changes are in this situation.
05:40The new act,
05:42because the rules are new,
05:44so they are notified of the rules.
05:45They are a part of the rules.
05:47So you can say,
05:48that the income tax rules of the year,
05:492026 came to change.
05:51But the change of the year,
05:52when the budget is done,
05:54so many changes are made.
05:55So that the same thing is,
05:56the other is,
05:57the virtual assets,
05:58and the digital assets,
05:59and the forms are made.
06:01If you have crypto,
06:02you have to report it.
06:03You have to report it.
06:05There will be a lot of information.
06:06You have to give your financial institutions.
06:10You have to give the PAN.
06:12You have to also give the PAN.
06:13You have to give the PAN.
06:13The PAN and the PAN.
06:14You have to give the attachments.
06:16There are changes you have.
06:17So, there are changes you have.
06:18There are new tax tax tax from now.
06:21The first,
06:22which you can give the income tax tax,
06:23you will give the same way.
06:54New regime, old regime, you can choose.
06:5612 lakh rupees, which was now until now,
06:58Section 87A, that was also a rebate.
07:00Standard deduction was received for salary.
07:02That was also received before.
07:04So many people, I have interacted with these people
07:08on 2-3 days, all of these people are confused.
07:10What will be changing this new act?
07:12Nothing will change.
07:14The first tax system was the first tax system.
07:16Only the income tax act and sections will change.
07:20Like I said, the name of ATC will be 123.
07:22As the number of sections were marked by people,
07:25some people remember the section.
07:27Practitioners, which are tax advocates, chartered accountants,
07:30they have been remembered for years and years
07:31to remember the provisions.
07:33Today they were marked by their minds.
07:35This is 154, this is Section 54F,
07:38this is Section 16.
07:40All will change.
07:41So I feel that they have to be more careful,
07:43remember the new sections.
07:45But otherwise, principally the tax system
07:47which is cut in your pay slip,
07:48the tax cuts.
07:50And what you think of tax,
07:52you choose the old regime.
07:53There is no change or change.
07:55Keep in mind this.
07:56See you.
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