New financial year begins with higher tariffs and revised banking rules
Bengaluru: With the onset of the new financial year 2026-27 from today, the cost of living is set to rise as several tariffs and charges across sectors have been revised.
From electricity and drinking water tariffs to highway tolls and motor vehicle cess, multiple increases are likely to put additional burden on the common man.
The Karnataka Electricity Regulatory Commission (KERC) has approved a hike in power tariff ranging from 40 paise to 50 paise per unit. Meanwhile, City Corporations have already announced an increase in drinking water charges.
Highway toll fees have also been revised by 3 percent to 5 percent, affecting motorists travelling on major roads, including the Mysuru-Bengaluru Highway.
In addition, City Corporations have decided to levy a motor vehicle cess on households owning vehicles within their jurisdiction.
Changes in tax rules
The new financial year also brings changes in rules relating to banking, taxation, energy and transport sectors.
The Income Tax Act, 2025, which comes into effect from today, introduces simplified terminology in tax filing. The commonly used terms ‘Assessment Year’ and ‘Previous Year’ will now be replaced with the term ‘Tax Year’ to make the filing process easier.
Under the amended Act, annual income up to Rs. 12 lakh will attract zero tax under the revised slab. In addition, Forms 130 and 131 will replace the existing Forms 16 and 16A as part of efforts to simplify tax filing procedures.
For obtaining a PAN card, applicants will now have to submit age proof documents such as SSLC marks card, passport or other valid records along with Aadhaar.
The Centre is also expected to revise the prices of domestic LPG cylinders, besides possible changes in the rates of Piped Natural Gas (PNG), Compressed Natural Gas (CNG) and Aviation Turbine Fuel (ATF).
Banking changes
Banks have also introduced some changes in ATM and transaction rules. Transactions made through UPI may now be counted along with ATM withdrawals under the limit of free transactions offered by banks.
Customers exceeding the free transaction limit will be charged Rs. 23 per transaction (plus applicable taxes), while failed transactions due to insufficient balance may attract a charge of Rs. 25 (plus applicable taxes).
Some banks have also reduced the maximum daily ATM withdrawal limit as an added security measure, from Rs. 1 lakh to Rs. 50,000 and from Rs. 1.5 lakh to Rs. 75,000 in certain cases.
Train ticket cancellation
Train travellers will also have to pay higher cancellation charges following revised refund rules by the Indian Railways.
Under the new rules, 50 percent of the fare will be refunded for tickets cancelled 8 to 24 hours before departure.
Tickets cancelled 24 to 72 hours before the journey will receive up to 75 percent refund, while those cancelled more than 72 hours before departure will be eligible for maximum refund.
This post was published on April 1, 2026 6:44 pm