As we step into the new financial year on April 1, 2025, several pivotal changes in India’s financial landscape are set to take effect. These modifications span various sectors, including income tax regulations, digital payments, credit card rewards, and more. Understanding these updates is crucial for individuals and businesses to navigate the evolving financial environment effectively.
Revised Income Tax Slabs
One of the most significant alterations pertains to the income tax structure. The Union Budget 2025 introduced new tax slabs aimed at providing relief to taxpayers:
- Income up to ₹4 lakh: No tax (NIL)
- Income from ₹4 lakh to ₹8 lakh: 5%
- Income from ₹8 lakh to ₹12 lakh: 10%
- Income from ₹12 lakh to ₹15 lakh: 15%
- Income above ₹15 lakh: 20%
Additionally, the basic exemption threshold has been raised from ₹3 lakh to ₹4 lakh, and the rebate limit under Section 87A has increased from ₹7 lakh to ₹12 lakh. These adjustments are designed to enhance disposable income and stimulate economic growth.
Changes in UPI Regulations
The National Payments Corporation of India (NPCI) has implemented new guidelines to bolster the security of digital transactions. UPI IDs linked to mobile numbers that have been inactive or reassigned will be deactivated. To prevent any disruption in UPI services, ensure that your bank account is linked to an active mobile number.
Credit Card Reward Points Adjustments
Several banks are revising their credit card reward structures:
SBI SimplyCLICK Credit Card: The reward points for transactions on Swiggy have been reduced from 10X to 5X. However, 10X reward points will continue for purchases on Myntra, BookMyShow, and Apollo 24|7.
Air India SBI Platinum Credit Card: Reward points for booking Air India tickets have decreased from 15 to 5 per ₹100 spent.
These changes underscore the importance of reviewing your credit card benefits to maximize rewards.
Unified Pension Scheme Implementation
The Unified Pension Scheme (UPS) under the National Pension System (NPS) is now in effect, guaranteeing a fixed pension for central government employees. Those with at least 25 years of service will receive 50% of the average basic salary of the last 12 months as a pension, providing enhanced financial security post-retirement.
E-Invoicing Requirements for Businesses
Businesses with an annual turnover of ₹10 crore or more are now mandated to upload e-invoices to the Invoice Registration Portal within 30 days of issuance. This requirement, previously applicable to businesses with turnovers exceeding ₹100 crore, aims to improve GST compliance and streamline tax processes.
Tax Relief for Parents Funding Education Abroad
Under the Liberalized Remittance Scheme (LRS), parents can now remit up to ₹10 lakh annually for their children’s education abroad without incurring Tax Deducted at Source (TDS). This is an increase from the previous limit of ₹7 lakh, offering financial relief to families supporting international education.
GST and Tax Audit Reporting Updates
From April 1, 2025, India has updated tax audit reporting requirements with amendments to Form 3CD. These changes necessitate that businesses and tax professionals align their tax audit procedures with the new standards to ensure compliance.
Staying informed about these financial changes is vital for effective financial planning and compliance. Whether it’s understanding the new tax slabs, adapting to digital payment regulations, or maximizing credit card rewards, being proactive will help you navigate the financial landscape of the new fiscal year successfully.
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