As the new financial year begins on April 1, 2025, taxpayers, investors, and banking customers in India must prepare for several important changes in financial regulations. These reforms, previously announced by the government and regulatory bodies, are aimed at improving compliance, digital security, and financial transparency.

Here’s a simple breakdown of the key changes that come into effect starting April 1.

1. Higher Income Tax Exemption Limit

Good news for salaried individuals! Under the new tax regime:

• No income tax is payable if your annual income is up to ₹12 lakh.

• A standard deduction of ₹75,000 applies, making income up to ₹12.75 lakh effectively tax-free.

2. UPI Deactivation for Inactive Mobile Numbers

The National Payments Corporation of India (NPCI) will deactivate UPI IDs linked to phone numbers that haven’t been used for an extended period.

• Action required: If you have UPI accounts tied to old or inactive numbers, update them to avoid losing access.

3. Unified Pension Scheme (UPS) for Government Employees

A new Unified Pension Scheme (UPS) is being launched for central government employees under the National Pension System (NPS).

• Employees with at least 25 years of service will get 50% of their average last 12-month basic salary as monthly pension.

4. PAN-Aadhaar Linking Deadline

If you fail to link your PAN with Aadhaar by March 31, 2025, you will face:

• Non-receipt of dividends

• Higher TDS (Tax Deducted at Source)

• No credit in Form 26AS

5. Mandatory KYC for Mutual Funds and Demat Accounts

From April 1:

• KYC verification becomes compulsory for all mutual fund and demat accounts.

• Investors will also need to re-verify nominee details.

6. Changes in GST Portal Security

To tighten fraud prevention:

• Multi-Factor Authentication (MFA) is now mandatory for logging into the GST portal.

• E-way bills can only be generated from documents that are less than 180 days old.

7. Updated Minimum Balance Rules in Major Banks

Public sector banks like SBI, PNB, and Canara Bank are changing their minimum balance rules.

• Customers failing to maintain the required balance may incur penalties.

8. Positive Pay System for Cheques

To prevent cheque fraud:

• For cheques of ₹50,000 or more, customers must pre-confirm cheque details electronically with the bank.

• This system ensures verification before cheque clearance.

9. Priority Sector Lending Loan Limits Increased

Loan eligibility under Priority Sector Lending (PSL) has been revised:

• Up to ₹50 lakh in metro cities

• Up to ₹45 lakh in Tier-2 cities

• Up to ₹35 lakh in smaller towns

This helps more homebuyers benefit from lower interest rates and priority processing.

10. Higher TDS Exemption Limit for Senior Citizens

• The TDS exemption limit on interest income for senior citizens has been raised to ₹1 lakh.

• This offers greater post-retirement tax relief and boosts savings for senior citizens.

In Summary From revised tax slabs and digital banking changes to pension schemes and compliance mandates, April 1, 2025, marks a significant shift in India's financial landscape. These updates are designed to promote transparency, reduce fraud, and provide relief to taxpayers. Whether you're a salaried employee, investor, retiree, or small business owner, review these rules carefully to stay compliant and make informed financial decisions.