Credit Card Rules Set to Change From April 1: What Users Must Know

Heads up! The Income Tax Department has proposed some major changes for credit card users in its draft Income Tax Rules 2026, which are expected to be implemented from April 1, 2026.

Credit Card Rule Changes

If you use a credit card, get ready for some big changes. The Income Tax Department has suggested new rules in its draft Income Tax Rules 2026, planned from April 1, 2026. But remember, these are just proposals for now and will only become official after the final rules are published.

First Change

So, what's the first major change? If you make payments of ₹1 million (that's 10 lakh rupees) or more in a financial year using one or more credit cards, your bank or card issuer will have to report this information to the Income Tax Department. This is a big step to track high-value transactions.

Online Income Tax Payment

Second change: Your credit card statement can now be used as address proof for getting a PAN card. Third change: You might soon be able to pay your income tax online using a credit card. Until now, you could only use net banking, debit cards, or other non-credit card methods for this.

PAN Card Mandatory

Fourth change: It will now be mandatory to provide your PAN card when applying for a new credit card. Fifth change: If your company gives you a credit card and pays the bills, this amount could be considered taxable income for you, unless the expenses are strictly for official work.