As the calendar flips to 2026, several important financial and regulatory updates are set to take effect from January 1, 2025, directly impacting taxpayers,
bank customers, borrowers, and salaried employees. From income tax filing rules to PAN-Aadhaar compliance and credit score updates, these changes could influence how you manage your money in the new year. Being aware of what’s coming can help you stay compliant and avoid unnecessary financial disruptions. Income Tax Filing Rules Get Tighter From January 1, 2026, taxpayers will lose the option to file a revised income tax return for the assessment year 2025–26. The window to submit a revised ITR closes on December 31, after which taxpayers must use the Updated Return or ITR-U route if corrections are needed. The income tax department has been actively nudging taxpayers to revise returns where discrepancies are detected, making this deadline especially significant. In addition, the facility to file a belated return for AY2025–26 also expires on December 31. Belated returns are meant for individuals who miss the original filing deadline, which this year fell on September 16. Once January begins, neither revised nor belated returns will be permitted for this assessment year. PAN-Aadhaar Linking Becomes Mandatory Another crucial deadline ends on December 31, the last day to link PAN with Aadhaar. From January 1, PAN-Aadhaar linking becomes compulsory. PAN cards that are not linked will turn inoperative, creating hurdles for filing income tax returns and carrying out essential banking activities such as opening accounts or applying for loans. LPG Prices Likely To Be Revised LPG prices, both domestic and commercial, are typically reviewed on the first day of each month. Accordingly, fresh revisions in LPG cylinder prices are expected from January 1, which could influence household and business expenses. Faster Credit Score Updates From January A major consumer-friendly change arrives in the credit reporting system. Starting January, credit bureaus will update credit scores on a weekly basis instead of the current 15-day cycle. This means actions such as timely repayments or loan prepayments will reflect much faster in your credit profile, helping borrowers benefit sooner from improved credit behaviour. 8th Pay Commission Comes into Effect The 8th Central Pay Commission is scheduled to come into force from January 1, 2026. As per the government, “Usually, the recommendations of the pay commissions are implemented after a gap of every ten years. Going by this trend, the effect of the 8th Central Pay Commission recommendations would normally be expected from 01.01.2026.” That said, any actual salary revision is expected only after the recommendations are implemented, which could take more time.
