New Financial Year 2025-26: Key Changes in UPI Payments, Income Tax Slabs, and More

The financial year 2025-26 kicks off today, April 1, 2025, ushering in a series of changes that will impact consumers across India. Key modifications include new guidelines on online payments, alterations in income tax slabs, revised bank balance requirements, updates on LPG cylinder prices, and adjustments to toll charges. These changes require citizens and taxpayers to stay informed and adjust their financial habits accordingly.

Changes to UPI Payments Security

To enhance the safety of Unified Payments Interface (UPI) transactions, the National Payments Corporation of India (NPCI) has introduced strengthened guidelines that come into effect beginning April 1, 2025. Here are the main points:

• No payments will be allowed from inactive mobile numbers.
• Public and private sector banks, including State Bank of India and HDFC Bank, along with third-party UPI service providers like PhonePe and Google Pay, will begin phasing out inactive numbers linked to UPI accounts.
• To retain your UPI account, ensure your linked mobile number is active. If it has been inactive for a long time, contact your bank to update your details before the deadline.

Revisions in Income Tax Slabs

During the Budget 2025 address in February, Union Finance Minister Nirmala Sitharaman unveiled new income tax slabs that will be effective from April 1, 2025. Notable changes include:

• Individuals earning up to ₹12 lakh per annum will not be liable for income tax.
• A standard deduction of ₹75,000 for salaried individuals will effectively raise the tax-free income cap to ₹12.75 lakh.
• The basic exemption limit has been elevated from ₹3 lakh to ₹5 lakh.

TDS Limits Increased for Taxpayers

In a move to provide relief to investors, the government has increased the limit for Tax Deducted at Source (TDS) from ₹5,000 to ₹10,000. Effective April 1, 2025, TDS will only be deducted on annual dividend income that exceeds the new limit.

Updates to Credit Card Rules

For credit card users, new rules will come into play that will affect various products. Customers are advised to consult their respective banks for specific information. Some changes include:

• For SBI Card with SimplyCLICK and the Air India SBI Platinum Credit Card, modifications in reward points structures will be implemented.
• Axis Bank will revise Vistara Credit Card benefits following its merger with Air India.

Minimum Bank Balance Requirements

Effective from April 1, public sector banks such as SBI, Canara Bank, and Punjab National Bank are updating their minimum balance requirements. This will now be determined based on market conditions in respective regions—urban, semi-urban, and rural areas. Customers failing to maintain the minimum balance will incur penalties.

Unified Pension Scheme Implementation

The Unified Pension Scheme (UPS), designed to replace the outdated old pension scheme (OPS), will take effect on April 1, 2025. This change will impact approximately 2.3 million central government employees with a minimum of 25 years of service. Under UPS, eligible staff will receive a pension equivalent to 50% of their average basic salary over the last 12 months.

Goods and Services Tax (GST) Changes

Starting April 1, new regulations will be enforced on the GST portal, which will require mandatory multi-factor authentication for improved security. Additionally, E-Way Bills (EWBs) will be limited to base documents not older than 180 days to streamline operations.

National Highway Toll Increases

The toll rates on national highways across India are set to rise by approximately 3%. Specific changes include:

• Lucknow: Light vehicles will pay ₹10, increased by ₹5; heavy vehicles will now face a toll of ₹25.
• Delhi-Meerut Expressway: One-way tolls for cars will rise to ₹170, with light commercial vehicles and buses paying ₹275 and trucks ₹580, respectively.
• Chhijarsi Toll Plaza: Cars will face a toll increase to ₹175, light commercial vehicles ₹280, and buses/trucks ₹590.

LPG Cylinder Price Revisions

In a welcome development for consumers, the price of 19 kg commercial LPG cylinders has been reduced by ₹41, effective as of April 1, 2025. The latest prices across major cities are:

• New Delhi: ₹1,762
• Mumbai: ₹1,713
• Bengaluru: ₹1,836
• Chennai: ₹1,921
• Hyderabad: ₹1,985
• Kolkata: ₹1,868

As citizens navigate these financial changes beginning April 1, it is crucial to stay informed and adapt to the evolving landscape of personal finance and taxation.

By remaining vigilant and proactive, individuals can position themselves to benefit from these new regulations.

Keywords:

• Financial Year 2025-26
• UPI Payments Changes
• Income Tax Slabs 2025
• GST Updates
• Bank Balance Requirements
• Unified Pension Scheme
• Toll Rate Increases
• LPG Cylinder Price Reductions

Hashtags:

• #FinancialYear2025
• #UPIChanges
• #IncomeTaxSlabs
• #GSTUpdates
• #PensionScheme

This revised article summarizes the critical changes affecting taxpayers, consumers, and citizens as the new financial year begins and presents the information in an accessible, structured manner.

Source link