UPI security, PAN rules, tax deadline: Key financial changes from June 1

UPI payments, PAN requirements and advance tax rules see changes as several financial updates take effect

June 2026 begins with a series of changes that could affect how people make digital payments, manage taxes and handle routine financial transactions.

 

The biggest immediate changes relate to UPI security, advance tax compliance and new reporting requirements for high-value transactions.

 

For consumers, the focus is on safer digital payments and tighter compliance checks. For taxpayers and investors, June also brings an important advance tax deadline that should not be missed.

 

UPI gets stricter security checks from June

 

Digital payments have become a part of everyday life, but rising online fraud has pushed regulators and payment companies to strengthen safeguards.

 

From June, some UPI transactions, particularly higher-value payments, may require additional authentication beyond the usual UPI PIN. Depending on the app and transaction type, users could be asked to verify payments through fingerprint authentication, facial recognition or another device-based security layer.

 

The move is aimed at reducing unauthorised transactions and making it harder for fraudsters to misuse stolen credentials.

 

Popular UPI apps such as Google Pay, PhonePe and Paytm are expected to incorporate these enhanced security measures as part of broader fraud-prevention efforts.

 

UPI ATM withdrawals may affect free transaction limits

 

Banks are also expected to treat UPI-enabled cardless ATM withdrawals in the same manner as conventional ATM transactions for the purpose of monthly free withdrawal limits.

 

This means that if a customer exhausts the free withdrawal quota available under their account, additional ATM charges could apply even when the cash withdrawal is made through UPI instead of a debit card.

 

Customers who frequently use cash withdrawal facilities may want to keep track of their monthly transaction count to avoid unexpected fees.

 

June 15 advance tax deadline is crucial

 

For taxpayers, the most important date this month is June 15.

 

Individuals whose estimated tax liability for 2026-27 exceeds Rs 10,000 are required to pay the first instalment of advance tax by this date.

 

Under advance tax rules, 15 per cent of the total estimated tax liability must be paid in the first instalment.

 

Advance tax typically applies to:

 

•       Freelancers and consultants

 

•       Business owners and professionals

 

•       Individuals earning substantial interest income

 

•       Investors earning capital gains

 

•       People with income sources beyond regular salary subject to tax deducted at source or TDS

 

Missing the deadline could attract interest under the Income-tax Act, increasing the overall tax burden.

 

PAN rules change for certain transactions

 

June also marks the implementation of revised PAN-related thresholds for some financial transactions.

 

Under the updated framework:

 

•       Routine cash deposits above Rs 50,000 may no longer automatically require PAN quoting in certain cases.

 

•       PAN compliance becomes important when aggregate cash deposits or withdrawals reach Rs 10 lakh or more during a financial year.

 

•       The threshold for quoting PAN in certain property sale transactions has been increased from Rs 10 lakh to Rs 20 lakh.

 

At the same time, reporting requirements for larger transactions remain stringent. High-value property deals, specified gift transactions and certain development agreements may continue to attract mandatory reporting requirements.

 

For investors and property buyers, the changes highlight the need to maintain proper documentation for significant financial transactions.

 

EPFO's UPI withdrawal plan remains under watch

 

Another development being closely watched is the Employees' Provident Fund Organisation's proposed UPI-based withdrawal facility.

 

The system is reportedly under testing and, if rolled out, could allow subscribers to receive provident fund withdrawals through UPI, potentially reducing processing time.

 

However, as of June 1, the facility has not been formally rolled out nationwide and subscribers should continue using existing withdrawal procedures until an official launch is announced.

 

What should consumers do?

 

With multiple changes taking effect this month, consumers may want to keep a few points in mind:

 

•       Ensure UPI apps are updated to the latest version.

 

•       Verify recipient details carefully before making payments.

 

•       Monitor ATM withdrawal limits to avoid additional charges.

 

•       Check advance tax obligations before June 15.

 

•       Keep PAN and transaction records updated for high-value financial activities.