India (IN)
India is the world's most populous nation and a fast-rising global power — a vibrant federal republic of extraordinary cultural, linguistic, and geographic diversity.
2026 Annual Changes — India
Updated thresholds, benefits, and regulatory changes effective this year.
India's regulatory and financial landscape changes significantly each year, driven by the Union Budget (presented in February), Reserve Bank of India (RBI) policy decisions, and state-level regulatory updates. For expats, the most important annual changes affect: income tax regime and slabs, EPF interest rates, minimum wages (state-specific), GST rates, RBI repo rate (affecting home loans and bank interest), and immigration/FRRO regulations. This page tracks the key 2026 changes relevant to expats.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Income Tax — New Tax Regime (Default) New Tax Regime is now the default from FY2024-25 (AY2025-26 onwards). Standard deduction of ₹75,000 introduced for salaried employees under New Regime from FY2024-25. | New Regime (FY2025-26 / AY2026-27, revised in Budget 2025): 0% (₹0–4L); 5% (₹4–8L); 10% (₹8–12L); 15% (₹12–16L); 20% (₹16–20L); 25% (₹20–24L); 30% (above ₹24L). Standard deduction: ₹75,000 (unchanged). Salaried employees earning up to ₹12.75L/year effectively pay zero tax (₹12L taxable income + ₹75,000 standard deduction). | FY2024-25 slabs: 0% (₹0–3L), 5% (₹3–7L), 10% (₹7–10L), 15% (₹10–12L), 20% (₹12–15L), 30% (above ₹15L) | 1 April 2025 (FY2025-26 / AY2026-27) — revised in Budget 2025 |
| Income Tax — Section 87A Rebate Under New Regime: tax rebate (Section 87A) provides zero tax for total income up to ₹7 lakh. Effectively: no income tax for those earning up to ₹7 lakh/year under New Regime. | Rebate: ₹60,000 for taxable income up to ₹12L under New Regime (FY2025-26 — revised in Budget 2025 from ₹25,000/₹7L). Effectively: zero income tax for salaried employees earning up to ₹12.75L/year (₹12L + ₹75,000 standard deduction). | ₹25,000 rebate for income up to ₹7L (FY2024-25) | 1 April 2025 (FY2025-26) — major revision in Budget 2025 |
| EPF Interest Rate EPFO announced EPF interest rate for FY2025-26 | 8.25% per annum for FY2025-26 | 8.25% for FY2023-24; 8.15% for FY2022-23 | FY2025-26 (April 2025 – March 2026) |
| RBI Repo Rate RBI cut repo rate multiple times through 2025–2026 as part of rate easing cycle; rate at 5.25% as of April 2026 MPC decision (neutral stance). | 5.25% (as of April 2026 MPC decision; neutral stance). GDP projected 6.9% for FY2026-27. Monitor rbi.org.in for next MPC announcement. | 6.50% (2024); 6.25% (early 2025); 6.00% (April 2025) | April 2026 MPC decision |
| Minimum Wage (National Floor Level) National minimum wage under Code on Wages — concept of National Floor Level Wage being operationalised. | Estimated national floor: ₹178–200/day. State-specific minimums significantly higher: Delhi unskilled ₹17,494/month; Maharashtra ₹14,000+/month. | Previous floor: ₹176/day (2024 estimate). States set actual applicable minimums. | State-specific — revised periodically (twice yearly for some states) |
| GST — Rate Rationalisation (Ongoing) Group of Ministers (GoM) has been reviewing GST rate structure since 2023 — potential rationalisation of 12% and 18% slabs. Some specific items moved between slabs in 2024–25 Budget. | Current slabs: 0%, 5%, 12%, 18%, 28% (+ cess on luxury). Watch for GoM report outcomes. | Same structure since 2017 with incremental changes | Ongoing — major rationalisation may come in 2026 Budget |
| UPI International Expansion UPI payments enabled for Indian travellers and NRIs in multiple countries. International UPI acceptance growing. | UPI now usable in Singapore, UAE, UK, USA, France, Mauritius, Nepal, Bhutan, Sri Lanka, Malaysia. More countries being added. | Previously limited to a few countries (Singapore, UAE were first) | Ongoing expansion through 2025–2026 |
| DigiLocker — Universal Acceptance DigiLocker documents now accepted by all central government agencies as valid original documents. State governments progressively adopting. | DigiLocker documents have legal parity with physical documents for all central government services. | Acceptance was limited/discretionary before 2025 | 2024–2025 (IT Amendment Act notifications) |
| New Labour Codes — State Implementation Four Labour Codes (Code on Wages 2019, Industrial Relations Code 2020, Social Security Code 2020, Occupational Safety Code 2020) — replacing 29 old labour laws. States implementing at varying speeds in 2026. | Most states still using old labour law framework in practice. Code on Wages being implemented by some states. Watch for your state's implementation notification. | 29 old central labour laws (Factories Act, Minimum Wages Act, Employees' Provident Fund Act, etc.) | Ongoing — state-by-state implementation throughout 2025–2027 |
| PM Internship Scheme PM Internship Scheme launched in 2024 — target of 1 crore (10 million) youth internships with top 500 Indian companies by 2029. | ₹5,000/month stipend (government contribution), 12-month internship. One-time ₹6,000 allowance. Target: 1 crore youth. | No equivalent scheme at this scale previously | Phase 1: October 2024 onwards; expanding in 2025–2026 |
| LTCG (Long-Term Capital Gains Tax) on Property Union Budget 2024 changed LTCG on property: rate reduced from 20% (with indexation) to 12.5% (without indexation). This changed after representations — Finance Act 2024 allowed choice for property acquired before July 23, 2024. | Property acquired before 23 July 2024: taxpayer can choose 20% with indexation OR 12.5% without indexation. Property acquired after 23 July 2024: 12.5% without indexation. | 20% with indexation (standard rate before July 2024 budget) | 23 July 2024 (Budget 2024-25) |
| INR Exchange Rate Indian Rupee has depreciated gradually against USD. RBI manages rate within band. | Approximately ₹83–86/USD (2026 range). ₹91–94/EUR. | ₹82–84/USD (2024–2025) | Market-determined with RBI intervention |
| ESIC — Wage Ceiling (Unchanged) ESIC (Employee State Insurance) wage ceiling for contributions. | ₹21,000/month — employees above this threshold exempt from ESIC. Ceiling unchanged since 2017. | ₹21,000/month (unchanged since September 2017) | No change announced for 2026 — monitor for updates |
| Aadhaar-Based eKYC — Expanded Use Aadhaar-based eKYC now required/expanded for SIM card registration, bank account opening, and financial services. | Aadhaar eKYC standard for all new SIM registrations and bank accounts. Foreign nationals without Aadhaar use alternative KYC (passport-based). | Expanding progressively since 2017 | Ongoing regulatory evolution |
January Checklist
Actions to take each January when new rates take effect.
- 1
Verify current EPF interest rate on EPFO portal — check your EPF passbook for the credited interest.
- 2
Check if your employer has applied the correct income tax slab rates for the new financial year (FY starts April 1 — adjust TDS in June payslip after April 1).
- 3
Review your income tax regime choice for the coming financial year — compare New vs Old regime benefits by February to inform your employer.
- 4
Check if your state has updated minimum wage notifications — request HR confirmation of compliance.
- 5
Review your health insurance policy renewal — check if coverage amounts and premiums have changed.
- 6
Verify FRRO registration status and visa expiry — begin renewal process at least 60 days before expiry.
- 7
Check EPF UAN details are current — ensure your nomination is updated in the EPFO member portal.
- 8
Review NPS portfolio allocation if applicable — rebalance between equity and debt as needed.
- 9
If you have a home loan: check if your EMI has changed due to RBI repo rate adjustments (floating rate loans reset periodically).
- 10
File advance tax for Q3 (December 15 deadline has passed — ensure Q4 advance tax is planned for March 15).
- 11
Check GST registration compliance if you have a business — ensure all GSTR filings are current.
- 12
Update FRRO residential address if you have changed apartment — mandatory to notify within 14 days of address change.
- 13
Review your DTAA (Double Tax Avoidance Agreement) position if receiving income from your home country — consult CA if situation has changed.
- 14
Confirm your company has filed PF/ESIC challans for previous month — check your UAN passbook.
Where to Track Annual Changes
-
Income Tax Department — incometax.gov.in — tax slabs, ITR forms, circulars
-
EPFO — epfindia.gov.in — EPF interest rates, withdrawal rules, UAN updates
-
Reserve Bank of India — rbi.org.in — repo rate, FEMA regulations, banking guidelines
-
Ministry of Labour and Employment — labour.gov.in — minimum wages, Labour Codes implementation
-
GSTN / GST portal — gst.gov.in — GST rate changes, e-invoicing thresholds
-
FRRO portal — indianfrro.gov.in — immigration rules, registration requirements
-
Ministry of Finance — finmin.gov.in — Union Budget announcements (February each year)
-
IRDAI — irdai.gov.in — insurance premium changes, new product regulations
-
PFRDA — pfrda.org.in — NPS changes, contribution rules
-
India Briefing (india-briefing.com) — English-language regulatory updates for businesses
-
Economic Times (economictimes.indiatimes.com) — financial and regulatory news
-
Taxmann.com — detailed income tax and GST law updates
-
Indian Embassy / High Commission in your home country — visa fee changes, FRRO rule updates
All values are for 2026. India's regulatory environment is dynamic — the Union Budget in February and RBI MPC meetings every 2 months are the most important recurring events for financial changes. State governments (Maharashtra, Karnataka, Tamil Nadu, Delhi, etc.) set many taxes and regulations independently — check state-specific rules where applicable. Always consult a qualified CA (Chartered Accountant) for tax decisions and an immigration lawyer for visa-related matters rather than relying solely on this guide.
Annual Changes
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