The new financial year (FY 2025-26) begins on April 1, 2025 bringing significant changes to online payments and GST rates, income tax slabs, bank balances and LPG cylinder prices, TDS and toll charges plus credit card policies. Taxpayers and citizens need to monitor current income tax regulations alongside changes in bank fees for credit cards and UPI (Unified Payments Interface) modifications as well as all other personal finance adjustments that become effective on April 1.
Changes In UPI Payments
The National Payments Corporation of India (NPCI) plans to execute updated UPI guidelines starting April 1 to boost security measures. The regulations regarding payments through inactive phone numbers have been modified to deny such transactions.
The deactivation policy for UPI accounts associated with unusable numbers extends to SBI and HDFC Banks and all UPI third-party providers including PhonePe and Google Pay to protect account security. After April 1 2025 users who want to keep their UPI access must notify their banks about their inactive linked numbers.
Revised Income Tax Slabs
Finance Minister Nirmala Sitharaman presented alterations to income tax brackets through her Budget 2025 speech which comes into effect starting from April 1, 2025. Starting April 1, 2025 anyone who earns less than ₹12 lakh yearly will not pay income taxes.
Salaried employees who have these deductions will get no tax liability for incomes between ₹12.75 lakh and ₹1,000,000. Wage earners now access a higher basic tax-free threshold under the new tax system as it elevates from ₹3 lakh to ₹5 lakh.
Increase In TDS Relief
The Finance Minister announced that starting April 1, 2025, the tax deducted at source (TDS) restriction would be elevated from ₹5,000 to ₹10,000. Equities and mutual fund investors obtain advantages due to the revision in TDS rules because tax deduction starts only when dividend earnings exceed ₹10,000 annually.
Credit Card Updates
1. Multiple alterations have been introduced to credit card rules. Specific changes regarding these policies can be obtained by contacting individual banks. Some affected cards include:
2. SBI Cards adjusted the reward points system of the SimplyCLICK and Air India SBI Platinum Credit Cards.
3. The benefits provided by Vistara Credit Card underwent adjustments when Axis Bank acquired Air India.
Minimum Bank Balance Requirements
As of April 1 the minimum balance requirements of SBI together with Canara Bank and Punjab National Bank (PNB) are being adjusted according to customer location between rural, semi-urban and urban. Customers who do not keep their account balance above the minimum requirement will be imposed penalties.
Unified Pension Scheme Implementation
The ducted Unified Pension Scheme adopted in August 2024 starts operation on April 1 as a replacement for the retired Old Pension Scheme. The UPS will affect 23 lakh central government employees who have worked for more than 25 years and will ensure their retirement pension matches fifty percent of their basic income during the last year.
Changes In GST Rules
From April 1 the GST portal will enforce necessary multi-factor authentication (MFA) for enhanced security of taxpayers. E-Way Bills require generating documents based on base documents which should have been issued within the previous 180 days.
Increase In National Highway Tolls
1. The toll cost increase in Indian national highway (NH) operation stands at about 3% as new rates get implemented.
2. Maternity Hospital of King George Medical University implemented a ₹5 fee increase which established toll rates at ₹10 for light vehicles and ₹25 for heavy vehicles.
3. The toll fee for cars traveling from Sarai Kale Khan to Meerut along Delhi-Meerut Expressway & NH-9 has increased by ₹5 to become ₹170 without additional round-trip charges. The toll rates for light commercial vehicles and buses amount to ₹275 and trucks are expected to pay ₹580.
4. Users of cars at Chhijarsi toll plaza (NH-9) will now pay ₹175 while light commercial vehicles need to pay ₹280 and buses/trucks must pay ₹590. The travel toll for Ghaziabad-Meerut has been elevated by ₹5 to reach ₹75.
5. Cars and jeeps maintain the same toll rate of ₹85 at Delhi-Jaipur Highway (Kherki Daula toll plaza) while monthly passes for larger vehicles exist between ₹20 and ₹950. Truck tolls are set at ₹85 in one direction while monthly passes range between ₹20 to ₹1,255 for commercial vehicles.
LPG Cylinder Price Reductions
From today onward there will be a ₹41 decrease in the price of 19 kg commercial LPG cylinders. The rate decreased by ₹7 last February 1. The updated toll prices for main cities maintain these levels:
New Delhi: ₹1,762
Mumbai: ₹1,713
Bengaluru: ₹1,836
Chennai: ₹1,921
Hyderabad: ₹1,985
Kolkata: ₹1,868
The recent financial and regulatory changes that go into effect from April 1, 2025 will influence both taxpayers and investors and consumers in similar ways. People who keep themselves informed will have better insights into the developing financial environment.
