As December winds down and 2025 nears its end, it’s time to look beyond the celebrations. The new year isn’t just about flipping the calendar—it brings a wave of changes that will directly impact your income and expenses. Missing these updates could put a dent in your wallet. Here are 10 major changes set to begin on January 1, 2026.
1. A Pay Boost for Government Staff?
Central and state government employees could start the year with good news. The 7th Pay Commission’s term ends on December 31, 2025, paving the way for the expected implementation of the 8th Pay Commission. This could mean revised salary structures. Additionally, a Dearness Allowance (DA) hike is also likely from January.
2. Your Credit Score Gets More Active
Get ready for weekly updates to your credit score, replacing the current 15-day cycle. This means any delay in paying your home, car, personal, or business loan EMI will reflect on your score much faster, potentially affecting your loan eligibility and the interest rates offered by banks.
3. Cars Are Getting More Expensive
Planning to buy a new car? You might want to act fast. Several automakers, including Tata Motors, Honda, and JSW MG Motor, have announced plans to increase vehicle prices from January 1. Luxury brands like Mercedes-Benz and BMW are also expected to follow suit, with hikes estimated around 2-3%, citing increased production costs.
4. PAN-Aadhaar Linking Becomes Crucial
Linking your Permanent Account Number (PAN) with Aadhaar is set to become essential for accessing most banking and government services. Failure to do so could lead to restrictions on your bank transactions and other financial services.
5. Tighter Watch on UPI Payments
To combat rising digital fraud, banks will enforce stricter vigilance on UPI transactions starting next month. Rules for SIM verification on messaging apps like WhatsApp, Telegram, and Signal are also being tightened as a security measure.
6. FD Rates May See an Uptick
While banks like SBI, PNB, and HDFC have reduced loan interest rates following the RBI’s recent repo rate cut, the new year might bring some relief to savers. Banks are expected to potentially increase their Fixed Deposit (FD) interest rates.
7. New Rules for Crop Insurance
Reportedly, from the new year, the PM Fasal Bima Yojana will expand to cover crop damage caused by wild animals. Farmers must report any such damage within 72 hours to claim compensation.
8. Will Cooking Gas Get Cheaper?
There’s speculation of a price revision for domestic LPG cylinders. While prices for commercial cylinders were reduced in December, domestic rates have remained unchanged. With oil companies reviewing prices on the first of every month, a change for the 14.2-kg domestic cylinder is possible. Currently, a domestic cylinder in Delhi costs ₹853.
9. Last Chance for Belated Tax Returns
If you missed the September 16, 2025 deadline, December 31 is your final chance to file a belated Income Tax Return (ITR). This is also the last date for filing a revised return for those who submitted returns by September but need to correct errors. Penalties will apply.
10. A New, Pre-filled ITR Form
A new, simplified ITR form is expected to be introduced. It will come pre-filled with your banking transaction and expenditure details, making filing easier. However, this also means enhanced scrutiny by the Income Tax Department, making it harder to hide income or expenses.
