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From April 1, 2025, several key financial rule changes will come into effect, impacting taxpayers, UPI users, credit card holders, and pensioners
Key money changes from April 1
From April 1, 2025, several key financial rule changes will come into effect, impacting taxpayers, UPI users, credit card holders, and pensioners across India. As the financial year 2025-26 begins, new regulations related to income tax, credit cards, UPI security, GST compliance, and banking will shape personal finance decisions.
Income Tax Rule Change
The Union Budget 2025 introduced revised income tax slabs and deductions, which will now be implemented. Under the new tax regime, individuals earning up to ₹12 lakh per year will be exempt from paying income tax. Additionally, salaried individuals will benefit from a standard deduction of ₹75,000, making annual incomes up to ₹12.75 lakh tax-free. The new tax structure aims to provide relief to middle-class taxpayers while encouraging more people to transition to the new regime.
UPI Regulations To Change
Changes in UPI regulations will also take effect. The National Payments Corporation of India (NPCI) has mandated that UPI transactions from inactive mobile numbers will no longer be permitted. To enhance security, banks and third-party UPI apps such as PhonePe and Google Pay have been instructed to phase out UPI accounts linked to mobile numbers that have remained unused for an extended period. Users must update their UPI-linked mobile numbers with their respective banks before April 1 to avoid disruptions in digital transactions.
Credit Card Rule Change
Credit card holders will witness modifications in their reward points and benefits. SBI SimplyCLICK and Air India SBI Platinum Credit Card users will experience adjustments in reward structures. Meanwhile, Axis Bank will revise the benefits of its Vistara Credit Card following the airline’s merger with Air India, potentially altering its perks and travel advantages for customers.
Implementation of the Unified Pension Scheme
Another significant financial shift will be the implementation of the Unified Pension Scheme (UPS), replacing the old pension system. The UPS, which was introduced in August 2024, will officially come into effect from April 1, 2025. This change will impact approximately 23 lakh central government employees, ensuring that those with at least 25 years of service receive a pension equivalent to 50 percent of their last 12 months’ average basic salary.
GST Rules To Change
The Goods and Services Tax (GST) framework will also undergo modifications. A new security feature, Multi-Factor Authentication (MFA), will become mandatory for taxpayers accessing the GST portal. Furthermore, E-Way Bills (EWB) can only be generated for base documents that are no older than 180 days, a move aimed at improving compliance and reducing tax evasion.
Minimum Balance Requirement
In the banking sector, major lenders such as SBI, Punjab National Bank, and Canara Bank will update their minimum balance requirements. Customers who fail to maintain the revised minimum balance will face penalties as per the new banking guidelines.
As these financial changes take effect from April 1, it is crucial for individuals to stay informed and take necessary actions to comply with the new rules. From tax adjustments to banking updates, these reforms will influence financial planning for the upcoming fiscal year.