Key Money Changes from April 1
As we know the new financial year 2025-26 (FY26) begins on April 1, bringing several important changes to income tax rules, UPI transactions, bank requirements, and more. These updates will affect taxpayers, salaried employees, and consumers across India. Here’s a simple breakdown of the major changes
1. New Income Tax Rules
The government has introduced new income tax rules, making earnings up to Rs 12 lakh per year tax-free. Finance Minister Nirmala Sitharaman announced this update in the Budget 2025 speech. Additionally, salaried individuals will benefit from a Rs 75,000 standard deduction. This means that people earning up to Rs 12.75 lakh annually will not have to pay income tax.
2. Changes in Pension Scheme
The government has replaced the Old Pension Scheme with the Unified Pension Scheme (UPS), which was introduced in August 2024. This change will impact approximately 23 lakh central government employees. Under the new scheme:
Employees with at least 25 years of service will receive a pension equal to 50% of their last 12 months’ average basic salary.
This aims to provide better financial security to retirees.
3. Credit Card Rule Changes
Several banks are revising their credit card reward structures. Some major updates include:
SimplyCLICK SBI Card and Air India SBI Platinum Credit Card: Changes in the reward points system.
Axis Bank Vistara Credit Card: Benefits will be revised due to Vistara’s merger with Air India.
Customers should check with their banks to understand how these changes will affect their credit card benefits.
4. UPI Transaction Rules Update
The National Payments Corporation of India (NPCI) has introduced new security measures for UPI transactions. Key updates include:
Deactivation of inactive UPI numbers: If a user has not made UPI transactions using their mobile number for a long time, the number will be deactivated.
Action Required: Users must update their mobile number with their bank before April 1 to continue using UPI services.
Banks and UPI providers like PhonePe and Google Pay will remove inactive numbers to reduce security risks.
5. Minimum Bank Balance Requirements
Several major banks, including State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank, are updating their minimum balance requirements from April 1. Customers who fail to maintain the required minimum balance may face penalties. It is important for account holders to check with their banks and ensure they meet the new balance requirements.
6. GST Rules Changes
The Goods and Services Tax (GST) system will see new security and compliance measures, including:
Mandatory Multi-Factor Authentication (MFA): Taxpayers must now complete MFA when logging into the GST portal for added security.
E-Way Bill Restrictions: E-Way bills can only be generated for base documents that are not older than 180 days. This ensures businesses keep their documents up to date.
Final Thoughts
This is not new for us like every year government changes something. When Mach is closing then all middle class eyes on only 1st April because our government changing some rule and that impact on our budget. These changes aim to improve financial security, simplify tax structures, and enhance digital payment safety. Taxpayers, salaried employees, and consumers should stay informed and take necessary actions, such as updating UPI details, checking new tax slabs, and ensuring bank account balances meet the new requirements.
Keeping track of these updates will help individuals and businesses avoid penalties and make the most of new financial benefits. Those having GST and coming under the Tax slab they must have to check all details so that they can avoid from the penalty.