The new 2025 financial year begins on April 1, a bunch of new tax and money rules will kick in. These updates, shared over the past few months, will affect people who pay taxes, invest, or use banking services daily. From bigger tax breaks to fresh UPI rules, here’s a simple breakdown of what’s coming.
Bigger Tax Breaks
Starting April 1, if you earn up to Rs 12 lakh a year, you won’t owe any income tax. Plus, if you’re a salaried worker, you’ll get a Rs 75,000 standard deduction, meaning you can earn up to Rs 12.75 lakh without paying tax under the new system.
UPI Shutoff for Unused Numbers
From April 1, if your phone number linked to UPI hasn’t been active for a while, that UPI ID will stop working. So, if your bank-registered mobile number has been dormant, you’ll lose access to UPI services unless you update it.
New Unified Pension Scheme (UPS)
The Unified Pension Scheme (UPS) rolls out on April 1, giving central government employees under the National Pension System (NPS) a new choice. If you’ve worked for 25 years or more, you’ll get a pension equal to half your average basic pay from the last 12 months.
PAN-Aadhaar Link Deadline
If you don’t connect your PAN to your Aadhaar by March 31, 2025, you’ll miss out on dividend payments. On top of that, your TDS (tax deducted at source) will go up, and you won’t see credits in your Form 26AS, which tracks your tax details.
GST Portal Updates
To make things safer, the GST portal will require multi-factor authentication (MFA) starting April 1. Also, e-way bills—needed for moving goods—can only be made for documents less than 180 days old, keeping things current and secure.
New Minimum Balance Rules
Major banks like the State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank are changing how much money you need to keep in your account. If your balance dips below the new limit after April 1, you could face a fee.
KYC Must for Investments
Starting April 1, you’ll need to complete KYC (Know Your Customer) checks for all mutual fund and demat accounts. They’ll also double-check your nominee details to keep everything up to date.
Boost in Priority Sector Lending
From April 1, homebuyers can borrow more under Priority Sector Lending rules. You can get up to Rs 50 lakh in big cities, Rs 45 lakh in medium-sized towns (Tier-2), and Rs 35 lakh in smaller areas—making home loans easier to access.
Cheque Safety with Positive Pay
To stop cheque scams, banks are launching the Positive Pay System. If you write a cheque for Rs 50,000 or more, you’ll need to send its details to your bank online for a check before it’s cashed.
More TDS Relief for Seniors
For senior citizens, the TDS limit on interest income jumps to Rs 1 lakh starting April 1. This means they can earn more from savings or fixed deposits without the tax being cut upfront.
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