Flight Ticket Refund Rules: Even if the ticket is ‘non-refundable,’ you can still get your money back! DGCA issues new rules on taxes and fees

 

According to the new DGCA rule, passengers will now receive a full refund of taxes and airport fees (UDF/PSF) even if a non-refundable or promo ticket is cancelled. Airlines will also be required to refund this amount in the event of a no-show. Airlines will no longer be able to use the tax money as their revenue.

Flight Ticket Refund Rules: Air travel has become a part of everyday life. Some travel for work, some to visit family, and others to enjoy a vacation. But the real hassle begins when tickets have to be cancelled, flights are missed, or the airline delays refunds.

Many passengers have complained about not receiving a full refund, taxes and fees being deducted, or the refund process being unnecessarily lengthy. To address these issues, the Directorate General of Civil Aviation (DGCA) has made significant changes to airline ticketing rules, effective March 26, 2026.

New Rules Introduced Due to Refund Complaints

The DGCA issued the new rules on February 24, 2026, stating that air ticket refunds had become a major complaint among passengers. Complaints were particularly focused on procedures such as delayed refunds, incomplete refunds, and vouchers being issued instead of cash. For this reason, DGCA has intervened and implemented some clear and strict provisions in the interest of passengers.

Clear rules on refunds of taxes and fees

The new rules now provide relief: airlines must refund all statutory taxes and passenger service charges (PDF), ADF, and PSF (Passport Charges) in the event of ticket cancellation, non-use, or no-show. This rule also applies to promotional or special fares, even if the base fare is non-refundable. This means that the idea of ​​deducting everything because the base fare is non-refundable will no longer apply. Taxes and government fees must be refunded to passengers.

Refunds will now be received within the stipulated timeframe.

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The new rules also specify refund deadlines. If payment was made by credit card, the airline must process the refund within 7 working days. If the ticket was purchased through a travel agent or online portal, the airline will still be responsible for the refund and must process it within 14 working days. In cases of cash payments, refunds will be processed immediately at the airline office where the ticket was purchased.

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