Cash rules tightening from April 2026? Government clarifies viral post

Viral post claims new cash rules from April 2026, but PIB says it's misleading

A viral social media video has triggered anxiety among taxpayers by claiming that from April 1, 2026, the government will impose new taxes, penalties and reporting requirements on cash transactions and on holding cash beyond a fixed limit at home. The claim links these supposed changes to the proposed Income-tax Act, 2025.

 

Press Information Bureau (PIB), the government’s official fact-checking agency, has categorically rejected the claim, calling it misleading and incorrect.

What does the viral claim say?

 

According to the video circulating online, the Income-tax Act, 2025 will introduce stricter controls on cash from April 2026. It alleges that:

 

• Cash transactions beyond certain limits will attract new taxes 
• Keeping cash at home above a prescribed threshold will invite penalties
• Fresh reporting obligations will be imposed on individuals and households

These claims have been widely shared, fuelling confusion about whether everyday cash usage could soon come under tighter scrutiny.

PIB clarifies

 

PIB Fact Check said there is no truth to these assertions. It stated clearly that the proposed Income-tax Act, 2025 does not introduce any new tax, penalty or reporting requirement related to cash transactions or cash holdings.

 

According to PIB, the objective of the new law is limited to structural improvements. “The Income-tax Act, 2025 aims only at simplification, improving clarity and ensuring continuity. It does not bring any major policy change compared to the Income-tax Act, 1961,” the fact-check note said.

 

In other words, existing provisions on cash transactions remain unchanged, and no new restrictions are being introduced merely because of the proposed law. 

What the Income-tax Act, 2025 is about?

 

The Income-tax Act, 2025 has been proposed as a clean rewrite of the six-decade-old Income-tax Act, 1961. Its stated goals include:

• Simplifying complex language
• Reducing duplication and ambiguity
• Improving logical flow and section-wise clarity 
• Making the law easier for taxpayers to understand and comply with

It is not intended to expand the tax net through new cash-related rules, nor does it change the underlying policy framework governing cash transactions. 

 

What should taxpayers do?

 

PIB has advised taxpayers and other stakeholders to rely only on official sources for accurate information. Individuals can refer to:

• Frequently asked questions (FAQs) available on the income tax portal
• The section-wise mapping tool that compares provisions of the 1961 Act with the proposed 2025 Act

These resources explain how existing provisions are being reorganised, not altered in substance.