New Delhi, December 31, 2025— As the new year begins on January 1, 2026, a series of major financial and tax-related changes have come into force across India, directly affecting individual taxpayers, salaried employees and banking customers. The changes relate to income tax return filing, PAN-Aadhaar linking, credit score updates, implementation of the Eighth Pay Commission and possible revisions in LPG prices.
From January 1 onwards, taxpayers will no longer be allowed to file revised income tax returns for the assessment year 2025–26. The deadline for submitting a revised return ended on December 31, 2025. After this date, those seeking to correct errors in their returns will have to opt for the updated return option, known as ITR-U. The Income Tax Department had earlier issued reminders to several taxpayers to revise their returns due to mismatches in reported income and expenses.
The window for filing belated income tax returns for the 2025–26 assessment year has also closed. Taxpayers who failed to submit their original returns by the prescribed deadline of September 16, 2025, can no longer file a belated return after December 31.
Another key change from January is the faster updating of credit scores. Credit bureaus will now refresh credit scores on a weekly basis instead of the earlier 15-day cycle. This means repayments of loans, credit card usage and prepayments will reflect much quicker in an individual’s credit profile, allowing both improvements and declines in scores to be seen sooner.
PAN-Aadhaar linking has now become mandatory. The deadline to link PAN with Aadhaar expired on December 31, and from January 1, unlinked PAN cards will be considered invalid. This will restrict individuals from filing income tax returns, opening bank accounts, applying for loans and carrying out several other financial transactions.
The Eighth Central Pay Commission has officially come into effect from January 1, 2026. While the commission’s recommendations are expected to be applicable from this date, the actual implementation of revised salaries for central government employees may take place later, once the recommendations are finalised and approved by the government.
LPG cylinder prices are also likely to see a revision, as both domestic and commercial LPG rates are typically reviewed on the first day of every month. Any change announced from January 1 could have a direct impact on household budgets as well as commercial consumers.
These developments mark a significant shift in tax, banking and personal finance regulations at the start of 2026. Individuals are advised to stay informed and ensure compliance to avoid financial disruptions in the coming months.
