New Tax Rates, UPI Updates, and GST Changes: What to Expect Starting April 1, 2025
New Tax Rates, UPI Updates, and GST Changes: What to Expect Starting April 1, 2025
These changes will have a significant impact on both individuals and businesses, so it’s crucial to stay informed and make necessary adjustments ahead of the new regulations.
From April 1, 2025, several important regulatory and financial changes will come into play, impacting citizens across the country. These updates include revised tax slabs, enhancements to UPI security, and updates to the GST system.
 Here’s a detailed look at the changes you can expect:
New Tax Slabs and Rates
As announced by Union Finance Minister Nirmala Sitharaman in the annual budget, the new tax structure will be implemented starting April 1, 2025. Under the revised tax regime, individuals earning up to Rs 12 lakh annually will no longer be required to pay taxes. Additionally, salaried individuals will receive a standard deduction of Rs 75,000, meaning those earning up to Rs 12.75 lakh will be exempt from paying taxes under the new system.
Unified Pension Scheme (UPS)
The Unified Pension Scheme, introduced by the central government in August 2024, will officially take effect on April 1, 2025. It is expected to benefit around 23 lakh central government employees. Employees who have served for at least 25 years will be entitled to a pension equal to 50% of their average basic salary over the last 12 months, ensuring financial stability post-retirement.
UPI Security Updates
To strengthen the security of the Unified Payments Interface (UPI), the National Payments Corporation of India (NPCI) has issued new guidelines, which will take effect from April 1, 2025. These guidelines require banks and third-party UPI providers, such as PhonePe and Google Pay, to remove inactive mobile numbers linked to UPI accounts. Inactive numbers pose a security risk as they can remain linked to accounts even after the number is deactivated or changed. To avoid losing access to UPI payments, users should update their mobile numbers with their bank before April 1, 2025.
GST System Changes
With the new financial year, the Goods and Services Tax (GST) system will also undergo its annual updates. Starting April 1, 2025, Multi-factor Authentication (MFA) will become mandatory for all taxpayers using the GST portal, enhancing security. Additionally, E-Way Bills (EWBs) can only be generated for documents not older than 180 days. For those filing GSTR-7 for tax deductions at source (TDS), there will be no more skipping months or filing out-of-order. Also, promoters and directors will now be required to visit a GST Suvidha Kendra for biometric authentication.
