As the new financial year begins on April 1, 2025, several key financial and regulatory changes will come into effect that will impact salaried individuals, pensioners, UPI users, and businesses alike.
Revised income tax slabs bring relief to middle-income earners
Under the new tax regime announced in the Union Budget, individuals earning up to ₹12 lakh annually will be exempt from paying income tax. The revised slab also includes a standard deduction of ₹75,000, effectively exempting those with an annual salary up to ₹12.75 lakh from taxes.
Here is the new tax structure:
- Up to Rs 4 lakh – No tax
- Rs 4 lakh to Rs 8 lakh – 5%
- Rs 8 lakh to Rs 12 lakh – 10%
- Rs 12 lakh to Rs 16 lakh – 15%
- Rs 16 lakh to Rs 20 lakh – 20%
- Rs 20 lakh to Rs 24 lakh – 25%
- Above Rs 24 lakh – 30%
Unified Pension Scheme promises post-retirement stability for government staff
The Unified Pension Scheme (UPS), launched in August 2024, will come into force from April 1. The scheme is aimed at benefiting around 23 lakh central government employees. Those who have served for 25 years or more will be entitled to a pension equal to 50% of their average basic salary over the last 12 months, offering a more secure retirement.
UPI security tightened with inactive number purge
To enhance digital payment security, the National Payments Corporation of India (NPCI) has issued guidelines for banks and UPI service providers to phase out inactive mobile numbers linked with UPI.
From April 1, UPI platforms are mandated to use the Mobile Number Revocation List (MNRL) and Digital Intelligence Platform (DIP) to regularly update user data—at least once a week. Users with inactive numbers are advised to update their mobile details with their banks to prevent loss of UPI access or potential misuse.
GST filing and authentication norms become stricter
In the GST domain, multi-factor authentication (MFA) will become mandatory for users logging into the GST portal, improving data security. Further updates include:
- E-Way Bills (EWB) will be restricted to documents not older than 180 days.
- GSTR-7 filings for Tax Deducted at Source (TDS) must now be filed in sequence with no skipping of months.
Promoters and directors will be required to visit a GST Suvidha Kendra for biometric verification.
These changes are part of broader efforts to streamline compliance and secure financial systems as the country enters the new fiscal year.