Come April 1, you will see some major changes in financial and tax rules. Most of these changes have been announced in the last couple of months. Finance Minister Nirmala Sitharaman announced a slew of income tax-related changes in the recent budget, and these will be implemented from April 1, 2025.
Among the major financial and tax changes are income tax exemption on annual income up to Rs 12 lakh, deactivation of UPI for mobile numbers not used for a long time, and no dividend if PAN-Aadhaar is not linked.
- New Income Tax Rule
Starting April 1, 2025, there will be new tax rates. No income tax will be charged on annual income up to Rs 12 lakh. Salaried individuals will get a standard deduction of Rs 75,000, making incomes up to Rs 12.75 lakh tax-free.
For more details on Tax - https://www.hemanthsardafinservices.in/2025/04/what-changes-for-taxpayers-from-april.html?m=1
- Changes in UPI Rules
From April 1, UPI IDs linked to reassigned numbers will be deactivated. If you haven't used your UPI-linked mobile number for a long time, update it before April 1 to keep your UPI account active.
- Changes in Credit Card Reward Points
SBI SimplyCLICK and Air India SBI Platinum credit card holders will see changes in their reward points. Axis Bank will also revise the benefits of Vistara credit cards due to the Air India and Vistara merger.
- Unified Pension Scheme (UPS)
Starting April 1, the Unified Pension Scheme will be available for central government employees under the NPS. Employees with 25 years of service will get 50% of their average basic salary of the last 12 months as a pension.
- Changes in GST Rules
From April 1, multi-factor authentication (MFA) will be required on the GST portal for added security. E-way bills can only be generated for documents not older than 180 days.
- Hotel Room Tariff and GST
Hotels with room tariffs over Rs 7,500 per day will be considered 'Specified Premises'. Restaurant services in these hotels will have an 18% GST but can benefit from input tax credit.
- Bank Account Minimum Balance Rules
SBI, Punjab National Bank, Canara Bank, and other major banks have updated their minimum balance requirements. If you don't maintain the minimum balance, you might face a penalty from April 1.
- Dividend Will Not Be Received if PAN-Aadhaar is Not Linked
If you don't link your PAN and Aadhaar by March 31, you won't receive dividend income from April 1. Additionally, TDS will increase, and no credit will be given in Form 26AS.
- Mutual Fund and Demat KYC Mandatory
From April 1, 2025, KYC will be mandatory for mutual fund and demat accounts. All nominee details will need to be re-verified.
- Positive Pay System for Check Clearance
To prevent bank fraud, a positive pay system will be implemented. For checks over Rs 50,000, account holders must electronically provide check details to the bank for verification before payment.
- Changes in Priority Sector Lending
From April 1, home loan borrowers can take loans up to Rs 50 lakh in metro cities, Rs 45 lakh in Tier-2 cities, and Rs 35 lakh in smaller cities under Priority Sector Loan.
- Increase in TDS Limit
The TDS limit on interest income for senior citizens has been increased to Rs 1 lakh.
- Changes in TCS Rules
New TCS rates will take effect from April 1, 2025. The TCS limit on foreign travel, investment, and other large transactions has been increased from Rs 7 lakh to Rs 10 lakh.
Summing Up...
These changes will impact your finances and transactions. Make sure to complete necessary financial tasks before April 1, 2025.
Source - FinancialExpress
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