A new financial year in India begins on Tuesday, bringing a host of changes that will impact citizens and taxpayers in various ways.
From income tax revisions and credit card updates to new UPI regulations and pension reforms, several key personal finance rules will take effect from April 1. Here’s a look at the most important changes:
In her Budget 2025 speech, Union Finance Minister Nirmala Sitharaman announced revised income tax slabs and rates, which will come into effect from April 1.
Under the new regime, individuals earning up to ₹12 lakh per year will not have to pay income tax. Salaried individuals will benefit from a standard deduction of ₹75,000, effectively making a salary of up to ₹12.75 lakh tax-free. The tax slabs have also been restructured under the revised system.
The National Payments Corporation of India (NPCI) has introduced new security measures for the Unified Payments Interface (UPI). From April 1, payments from inactive mobile numbers will no longer be allowed.
Banks and third-party UPI providers, such as PhonePe and Google Pay, have been directed to phase out inactive numbers linked to UPI accounts due to security concerns. If your mobile number linked to UPI has not been used for an extended period, you should update it with your bank before April 1 to avoid losing access.
Some credit cardholders will see adjustments in reward point structures. Users of the SBI SimplyCLICK Card and Air India SBI Platinum Credit Card will experience modifications to their rewards programme. Additionally, Axis Bank will revise the benefits of its Vistara Credit Card following the airline’s merger with Air India.
The government’s Unified Pension Scheme, launched in August 2024, will replace the old pension system from April 1. This change will affect around 23 lakh central government employees.
Under the new scheme, employees with at least 25 years of service will receive a pension equivalent to 50% of their average basic salary over the last 12 months.
The Goods and Services Tax (GST) portal will now require multi-factor authentication (MFA) for enhanced security. Additionally, E-Way Bills (EWBs) can only be generated for base documents that are no older than 180 days.
Several banks, including SBI, Punjab National Bank, and Canara Bank, are updating their minimum balance requirements. From April 1, account holders who fail to maintain the required minimum balance will face penalties.
(By arrangement with livemint.com)
