From PAN rules to railway fares: 5 money-related changes come into effect from July 1

A new month often brings updates in financial rules that impact everyday life, and July 2025 is no exception.

From changes in tax filing procedures to fare hikes in railways and mandatory Aadhaar linkage, here are five key money-related changes that come into effect across India starting July 1.

1. Railway fare hike

From July 1, train travel is set to become slightly more expensive.

Non-AC fares for mail and express trains is to rise by 1 paisa/km; AC classes will see a 2 paise/km hike. Ordinary second-class fares will remain unchanged up to 500 km, after which there will be an increase of half a paisa/km.

Sleeper class and first-class fares will also rise by half a paisa/km.

Additionally, booking Tatkal tickets on IRCTC will require Aadhaar verification. Passengers without verified Aadhaar-linked accounts will need to use physical ticket counters, as alternative ID proofs will no longer be accepted for online Tatkal bookings. The change targets touts who use software to hoard and resell last-minute tickets.

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2. Income Tax return deadline extended

The deadline to file Income Tax Returns (ITR) for the assessment year 2025–26 has been extended to September 15, giving taxpayers an extra 46 days beyond the original July 31 deadline. While this provides some relief, the CBDT advises early filing to avoid last-minute server issues and errors on the portal.

3. Aadhaar now mandatory for new PAN applications

The Central Board of Direct Taxes (CBDT) has made Aadhaar mandatory for anyone applying for a new Permanent Account Number (PAN) card from July 1 onwards. Previously, applicants could obtain a PAN card using other identity documents and a birth certificate. The move aims to enhance transparency and promote digitisation in India’s tax system.

4. LPG price changes on the horizon?

LPG prices in India, particularly commercial cylinders, are revised regularly based on global oil rates. In June, the price of a 19 kg commercial LPG cylinder dropped by ₹24 to ₹1,723.50. With ongoing volatility in global crude oil markets due to geopolitical tensions in West Asia, further changes in LPG prices are likely in July, though no official update has been issued for domestic cooking gas so far.

5. Major changes to GST return filing rules

Starting with the July 2025 tax period, two significant GST filing rules will be enforced:

Non-editable GSTR-3B: Once submitted, form GSTR-3B cannot be edited. Corrections must be made in GSTR-1A before submission.

Three-Year Filing Cap: Taxpayers will no longer be able to file any GST returns, including GSTR-1, GSTR-3B, GSTR-4, or GSTR-9, after three years from the original due date.

These changes aim to improve tax compliance and reduce errors and misuse in the Goods and Services Tax (GST) framework.