Income Tax, UPI, Credit Cards: Key Money Changes from April 1
Income Tax, UPI, Credit Cards: Key Money Changes from April 1
Starting April 1, 2025, several important financial rule changes will come into effect, impacting taxpayers, UPI users, credit card holders, and pensioners. These updates, introduced in the Union Budget 2025, will influence income tax, digital payments, banking, and GST compliance.
Income Tax Changes
Under the new tax regime, individuals earning up to ₹12 lakh annually will be exempt from income tax. Additionally, a standard deduction of ₹75,000 will apply to salaried employees, making incomes up to ₹12.75 lakh tax-free. These revisions aim to benefit middle-class taxpayers and encourage a shift to the new tax structure.
UPI Transactions to Be More Secure
The National Payments Corporation of India (NPCI) has introduced new security measures for UPI transactions. From April 1, UPI payments linked to inactive mobile numbers will be disabled. Banks and payment apps like PhonePe and Google Pay will phase out accounts linked to outdated mobile numbers. Users must update their UPI-linked numbers with their banks to avoid transaction disruptions.
Credit Card Reward Changes
Credit card users will see changes in reward structures. SBI SimplyCLICK and Air India SBI Platinum Credit Card holders will face modifications in their benefits. Axis Bank will revise its Vistara Credit Card perks following Air India’s merger, potentially altering travel benefits.
New Pension Scheme Implementation
The Unified Pension Scheme (UPS) will replace the old pension system from April 1, affecting nearly 23 lakh central government employees. Employees with at least 25 years of service will receive a pension equal to 50% of their last 12 months’ average basic salary.
GST and Banking Updates
GST rules will require Multi-Factor Authentication (MFA) for portal access, enhancing security. Additionally, E-Way Bills can only be generated for documents no older than 180 days to ensure compliance.
Major banks, including SBI, PNB, and Canara Bank, will update their minimum balance requirements. Customers failing to meet the new limits will face penalties.
With these financial changes taking effect from April 1, staying informed and updating personal details is crucial for smooth financial management in the new fiscal year.
