Sixteen Significant Changes in Personal Finance and Taxation Rules Effective April 1, 2025

As India enters a new financial year, several key changes in personal finance and taxation rules will come into effect. These changes will impact taxpayers, credit card users, and the general public. Here’s a comprehensive summary:

1.Revised Income Tax Slabs and Rates

 The new tax regime introduces updated tax slabs and rates, exempting individuals earning up to ₹12 lakh annually from paying income tax.

2. UPI Payment Rule Update

UPI payments from inactive numbers will no longer be possible. Update your mobile number linked to UPI with your bank before April 1.

3. Credit Card Reward Points Changes

 Certain credit cards, including SBI SimplyCLICK, Air India SBI Platinum, and Axis Bank Vistara Credit Card, will have revised reward points structures.

4. Unified Pension Scheme (UPS)

The UPS replaces the old pension scheme, affecting around 23 lakh central government employees. Eligible employees will receive a pension equivalent to 50% of their last 12 months’ average basic salary.

5. GST Portal Security Enhancements

The GST portal will implement mandatory multi-factor authentication (MFA) for taxpayers, enhancing security.

6. Bank Minimum Balance Requirement Updates

Banks like SBI, PNB, and Canara Bank will update their minimum balance requirements. Maintain the required balance to avoid penalties.

7. Changes in Saving Account and FD Interest Rates

Several banks, including SBI, HDFC Bank, Indian Bank, Punjab & Sind Bank, and IDBI Bank, will revise interest rates on savings accounts and FDs.

8. PAN-Aadhaar Linking Mandatory for Dividend Receipt

 Ensure your PAN-Aadhaar link is updated to receive dividends on stocks.

9. Stricter Demat-Mutual Fund Account Rules

SEBI has made rules for opening mutual fund and demat accounts stricter. Update your KYC and nominee details to avoid account freezing.

10. GST Rule Changes

The Input Service Distributor (ISD) system will be implemented, ensuring proper tax revenue distribution among states.

11. LPG Gas Cylinder Price Revisions

LPG gas cylinder prices may change, affecting domestic and commercial users.

12. TDS Exemption on FD Interest

Banks will not deduct TDS on interest up to ₹1 lakh on FD, RD, and similar savings schemes for senior citizens.

13. TDS/TCS Limit Revisions

 Threshold limits for TDS and TCS under certain sections of the Income Tax Act have been increased.

14. TDS on Partner’s Remuneration

Firms and LLPs must deduct TDS at 10% if payments to partners exceed ₹20,000 in a financial year.

15. Removal of TCS on Sale of Goods

 TCS under section 206C(1H) on sale of goods exceeding ₹50 lakhs will be removed.

16. Omission of Sections 206AB & 206CCA

Sections 206AB and 206CCA, requiring higher TDS and TCS rates for non-filers, will be removed.

Stay informed about these changes to ensure a financially secure future.