Today, significant changes have been made to the rules governing money matters. If you are a working professional, senior citizen, planning to buy a car, or someone who deals with banking transactions, this news is crucial for you. Some decisions will make your wallet lighter, while others will offer you relief. Let’s break down what has changed and how it will impact you.
For salaried individuals adopting the new tax regime, there’s good news! There’s now tax relief on incomes up to ₹12 lakhs. The new tax system eliminates taxes on earnings up to ₹4 lakh, and if you take the standard deduction of ₹75,000, it extends the tax-free limit up to ₹12.75 lakh. The older tax regime remains unchanged, but those who switch to the new regime will find themselves with more money in their pockets.
Here’s a breakdown of the tax slabs for FY 2024-25:
| Old Slab | Old Tax Rate (%) | New Slab | New Tax Rate (%) |
|---|---|---|---|
| ₹3 lakh and below | 0% | ₹0 lakh to ₹4 lakh | 0% |
| ₹3 lakh to ₹7 lakh | 5% | ₹4 lakh to ₹8 lakh | 5% |
| ₹7 lakh to ₹10 lakh | 10% | ₹8 lakh to ₹12 lakh | 10% |
| ₹10 lakh to ₹12 lakh | 15% | ₹12 lakh to ₹16 lakh | 15% |
| ₹12 lakh to ₹15 lakh | 20% | ₹16 lakh to ₹20 lakh | 20% |
| Over ₹15 lakh | 30% | Over ₹20 lakh | 25% |
The “Women’s Savings Scheme” (MSSC), which offered 7.5% interest, has been discontinued. While the money of those already invested remains secure, women looking to invest in the scheme will now have to explore other options. No announcements have been made to extend or revive the scheme.
For those planning to buy a car, expect higher costs. Major car manufacturers, including Maruti Suzuki, Tata Motors, Hyundai, and Honda, have raised their prices by up to 4%. The reason behind this hike is the increased cost of production and raw materials. If you’ve been eyeing a car, now may be the right time to make a move, as prices could rise further.
On a positive note, the price of commercial LPG cylinders has dropped by ₹44.50. This reduction will bring relief to hotels and restaurants, but there’s no change in the price of domestic LPG cylinders, so households won't see any benefit.
A new update in UPI (Unified Payments Interface) regulations could cause inconvenience for some users. If your mobile number has been inactive for a long time and is linked to your bank account, you may find that UPI payments won’t work from that number. To avoid this, ensure that your bank has your current mobile number updated to keep your transactions smooth.
There’s good news for senior citizens: the tax relief on interest income from bank and post-office deposits has been doubled, from ₹50,000 to ₹1 lakh. This means that now seniors can earn up to ₹1 lakh in interest tax-free, giving them more financial comfort.
The government has introduced a unified pension system for central employees, which combines both the old and new pension schemes. This reform will make retirement planning easier for government employees, providing clearer benefits and better future security.
Investors in Unit Linked Insurance Plans (ULIPs) will no longer enjoy tax-free benefits. A capital gains tax will now be applicable on investments exceeding ₹2.5 lakh. This move will affect those who have invested in ULIPs for tax-free returns and may require them to reassess their investment strategy.
Major banks, including SBI, PNB, and Canara Bank, have changed their rules regarding minimum balance requirements. Depending on whether your account is in an urban, semi-urban, or rural area, the required minimum balance will vary. Failure to maintain this balance could result in higher penalties, so keep an eye on your account balance.
There’s a silver lining for those planning to travel by air: the price of aviation turbine fuel (ATF) has dropped by ₹6,064.1 per kiloliter. This reduction is expected to bring down airline operating costs, leading to potentially lower flight ticket prices in the coming months.
Those with salaries up to ₹12 lakh – Relief from tax cuts.
Senior citizens – Increased tax relief on interest earnings.
Air travelers – Possible reduction in flight ticket prices.
Women – Loss due to the closure of the MSSC scheme.
Car buyers – Will have to pay more due to increased prices.
UPI users – May face issues if their linked number is inactive.
In conclusion, the new rules that came into effect today will have mixed consequences—offering relief for some while others may face increased costs. Make sure to stay informed and plan your financial decisions wisely.
