Major Financial Changes from April 1, 2025: New Tax Rules, UPI Updates & More
The financial year concludes today, and starting tomorrow, several key financial changes will take effect. From new tax rules and UPI regulations to changes in credit card benefits and GST updates, here’s what you need to know before April 1, 2025.
Revised Income Tax Rules
Starting April 1, 2025, a new tax structure will come into effect, bringing significant relief to taxpayers.
- Income up to ₹12 lakh per annum will now be tax-exempt.
- Salaried individuals will benefit from an increased standard deduction of ₹75,000.
- This effectively means that individuals earning up to ₹12.75 lakh annually will pay zero tax under the new regime.
- Tax slabs have been revised, offering greater savings for middle and high-income earners.
UPI Payment Changes: Update Your Mobile Number
The National Payments Corporation of India (NPCI) has implemented new security measures for Unified Payments Interface (UPI) transactions.
- From April 1, UPI payments will not be processed from inactive phone numbers.
- Users must update their UPI-linked mobile numbers with their banks before the deadline to avoid transaction failures.
- Banks and UPI providers like PhonePe and Google Pay will phase out inactive accounts to enhance security.
GST Updates: New Security Measures & Compliance Rules
The Goods and Services Tax (GST) portal will enforce multi-factor authentication (MFA) for all taxpayers to improve security.
- E-Way Bills (EWBs) can only be generated for base documents that are less than 180 days old.
- Businesses will need to ensure timely documentation to comply with the new regulations.
Credit Card Rule Changes: Updates on Rewards & Benefits
Several credit card providers are modifying their reward programs and benefits starting April 1.
- SBI SimplyCLICK and Air India SBI Platinum Credit Card users will see reduced reward points on select transactions.
- Axis Bank will update its Vistara Credit Card benefits following the airline’s merger with Air India.
Home Loan Borrowers: Interest Rate Outlook
With inflation easing and the Reserve Bank of India (RBI) reducing the repo rate by 25 basis points, home loan borrowers can expect lower interest rates.
- Another 25 bps rate cut is anticipated in April or June, further reducing borrowing costs.
- Borrowers with high credit scores (800+) may negotiate better interest rates or consider switching lenders.
Reciprocal Tariffs: US Announces New Trade Measures
US President Donald Trump has announced a new reciprocal tariff policy set to be unveiled on April 2.
- The tariffs will apply globally, not just to major trading partners like China.
- Industries reliant on imported goods may face costlier raw materials, impacting global trade.
Final Opportunity for Tax-Saving Decisions
March 31 is the last chance for individuals to make tax-saving investments for the FY 2024-25.
- Taxpayers should ensure timely investments in instruments like ELSS, PPF, and NPS.
- The new tax regime does not offer deductions under Section 80C, so planning ahead is crucial.
With these major financial changes, individuals and businesses should take necessary steps to stay compliant and maximize benefits. Stay updated with the latest business and finance news for more insights.