The new financial year is starting from Tuesday, April 1, 2025. This day is special for finance, banking and other matters including pension, because important changes are going to be implemented in them from the very first day.
In the new financial year, the income tax slabs will change, requiring people with incomes within a certain limit to pay less tax. Security in UPI payments through mobile will increase, and pension schemes will also change.
These changes will apply to millions of taxpayers, senior citizens, bank customers and people making payments through UPI.
Let us know about those six things whose rules are changing from Tuesday, April 1.
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Important Changes Coming into Effect from April 1, 2025: Income Tax, UPI Payments, and More
As the new financial year begins on April 1, 2025, several important changes in the fields of finance, banking, and pension schemes will come into effect. These changes will impact millions of taxpayers, senior citizens, bank customers, and those who use UPI (Unified Payments Interface) for payments. Let's take a look at the six major updates that are set to be implemented from April 1:
In the Union Budget for 2025, Finance Minister Nirmala Sitharaman announced revised income tax slabs that will take effect from April 1, 2025. The new tax slabs include a significant change for those earning up to ₹12 lakh annually, as they will no longer need to pay income tax. Additionally, salaried individuals will benefit from a ₹75,000 standard deduction, allowing them to enjoy tax-free income up to ₹12.75 lakh.
Income up to ₹12 lakh: No tax
Other income levels: Adjusted to provide greater relief for taxpayers.
Several banks, including the State Bank of India (SBI), Punjab National Bank, and Canara Bank, will introduce changes related to the maintenance of a minimum balance in accounts. Starting from April 1, customers who fail to maintain the required minimum balance will incur penalties. The minimum balance requirement will be based on the location of the bank account, whether it’s urban, semi-urban, or rural.
In addition, beginning in May 2025, withdrawing money from ATMs will become costlier as the Reserve Bank of India (RBI) has allowed banks to increase ATM interchange fees. Moreover, customers will only be allowed three free ATM withdrawals from non-bank ATMs per month; after that, they will have to pay a fee of ₹20-₹25 per transaction.
The Goods and Services Tax (GST) system will see new rules from April 1, including the introduction of multi-factor authentication (MFA) on the GST portal, enhancing security for taxpayers. Additionally, the e-way bill will only be required for documents that are not older than 180 days. Businesses filing TDS returns through GST will also need to file them in a specific order, and promoters/directors will have to visit GST facilitation centers for biometric verification.
The government will launch the Unified Pension Scheme (UPS) from April 1, 2025, benefiting around 23 lakh central government employees. Employees who have completed at least 25 years of service will be eligible for a pension equal to 50% of their average basic pay over the last 12 months. This scheme will provide financial security to retired employees.
As UPI payment systems have gained immense popularity in India, the National Payments Corporation of India (NPCI) will implement new security measures starting April 1, 2025. If your mobile number linked to UPI has been inactive for an extended period, you must update it with your bank before the deadline to ensure continued access to UPI payments. If not updated, access to UPI services will be blocked. Additionally, telecom guidelines suggest that any inactive number (unused for 90 days) may be reassigned to a new user, posing potential security risks. Therefore, it’s crucial to keep your mobile number updated to prevent financial issues.
From April 1, the Securities and Exchange Board of India (SEBI) will introduce a Special Investment Fund (SIF), aimed at bridging the gap between mutual funds and portfolio management services. A minimum investment of ₹10 lakh will be required to participate in this fund.
Credit card companies will also revamp their rewards point structures, impacting how points are earned and redeemed by users.
These six key changes will affect a wide range of individuals, from taxpayers to UPI users and pension beneficiaries. It’s important for everyone to stay updated with these new rules to ensure smooth financial transactions in the coming year.
