As the new financial year begins on April 1, 2025, several significant changes in financial regulations are set to impact taxpayers, UPI users, credit card holders, and pensioners across India. These updates, announced in the Union Budget 2025 and other regulatory frameworks, aim to streamline processes and enhance financial security.
1. Revised Income Tax Slabs
Under the new tax regime, individuals earning up to ₹12 lakh annually will be exempt from paying income tax. Additionally, a standard deduction of ₹75,000 for salaried individuals makes incomes up to ₹12.75 lakh tax-free. These changes are expected to provide relief to middle-class taxpayers.
2. UPI Security Enhancements
The National Payments Corporation of India (NPCI) has introduced new guidelines to improve UPI security. Mobile numbers linked to UPI accounts that have been inactive for an extended period will be deactivated. Users are advised to update their UPI-linked mobile numbers to avoid disruptions.
3. Credit Card Reward Adjustments
Credit card holders will experience changes in reward structures. For instance, SBI SimplyCLICK and Air India SBI Platinum credit cards will see revised benefits. Axis Bank will also update its Vistara credit card perks following the merger of Air India and Vistara.
4. Unified Pension Scheme (UPS)
The Unified Pension Scheme, replacing the old pension system, will come into effect. Central government employees with at least 25 years of service will receive a pension equivalent to 50% of their last 12 months’ average basic salary.
5. GST Compliance Updates
Multi-Factor Authentication (MFA) will become mandatory for accessing the GST portal, enhancing security. Additionally, E-Way Bills can only be generated for base documents not older than 180 days.
6. Banking Sector Changes
Major banks, including SBI, Punjab National Bank, and Canara Bank, have updated their minimum balance requirements. Customers failing to maintain the revised balance may face penalties.
These reforms are expected to influence financial planning and decision-making for individuals and businesses alike. Staying informed and proactive will be crucial to navigating these changes effectively.
