Starting April 1, 2025, several new financial and tax rules will come into effect. These changes, announced in the Union Budget 2025 by Finance Minister Nirmala Sitharaman, will impact your income, banking, investments, and spending habits. Here’s what you need to know:
The revised tax slabs under the new tax regime mean that income up to ₹12 lakh will now be tax-free. Additionally, a standard deduction of ₹75,000 ensures that salaried employees earning up to ₹12.75 lakh annually will pay zero tax.
The National Payments Corporation of India (NPCI) has announced that UPI accounts linked to mobile numbers that have not been used for a long time will be deactivated. To avoid service disruption, ensure your number is active and updated before April 1.
Holders of SBI SimplyCLICK, Air India SBI Platinum, and Axis Bank Vistara credit cards will experience changes in their reward structures. These modifications are part of the ongoing merger of Air India and Vistara.
The new Unified Pension Scheme (UPS) will replace the old pension system, benefiting around 23 lakh central government employees. Those with over 25 years of service will receive 50% of their average basic salary from the past 12 months as pension.
The Goods and Services Tax (GST) portal will now require multi-factor authentication for login. Also, e-way bills can only be generated using documents issued within the last 180 days.
Hotels charging over ₹7,500 per night will be classified as ‘Specified Premises.’ Restaurants in these hotels will now attract an 18% GST rate, though input tax credit benefits will be available.
Major banks such as SBI, PNB, and Canara Bank will enforce new minimum balance rules. Customers failing to maintain the required balance from April 1 may face penalties.
Investors must link their PAN with Aadhaar by March 31 to continue receiving dividend payouts. Those who fail to do so will face higher tax deductions at source (TDS) and may lose tax credit benefits in Form 26AS.
To keep mutual fund and demat accounts active, investors must complete re-verification of their nominee details starting in April.
To prevent fraud, banks will verify cheque details electronically before processing payments above ₹50,000 under the Positive Pay system.
Homebuyers can now avail of higher loan amounts under the Priority Sector Lending scheme: ₹50 lakh in metro cities, ₹45 lakh in mid-tier towns, and ₹35 lakh in smaller cities.
The Tax Collected at Source (TCS) limit for foreign travel, high-value transactions, and investments has been raised from ₹7 lakh to ₹10 lakh per year.
These changes could significantly affect your financial planning. Ensure compliance to avoid penalties and maximise benefits under the new rules.
With these financial changes taking effect from April 1, 2025, it’s essential to review your tax planning, banking, and investment strategies. Ensure compliance to avoid penalties and make the most of new benefits.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 1, 2025, 11:24 AM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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