The new financial year 2025-26 is starting from Tuesday, April 1, 2025, and with this, there are going to be important changes in many rules related to financial and non-financial services. Among these, the rules related to Income Tax and changes in the interest received on savings schemes are prominent.
Apart from this, changes in the rules related to UPI can affect your transactions. Some important changes have also been made to the GST rules. All these changes will directly affect your pocket, so you must understand these new rules well so that you do not have to face any kind of problem. So let’s know about these big changes in detail.
No tax on income up to ₹ 12.75 lakh
From the new financial year, which is starting from April 1, salaried people will not have to pay any tax on income up to ₹ 12.75 lakh. The government has announced no tax on income up to ₹ 12 lakh for all taxpayers who choose the new tax regime from the financial year 2025-26. Along with this, employed people will also get the benefit of an additional standard deduction of ₹ 75 thousand. This change is a big relief for those who choose to adopt the new tax system.
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New tax system implemented
A new tax system is also being implemented for taxpayers from April 1, 2025. In this tax system introduced in the budget on February 1, the number of slabs and income limits have been increased. However, this new tax system will be voluntary for taxpayers. Taxpayers can choose either the new or old tax system to file income tax returns.
There is no tax exemption on any type of investment in the new tax system. The old system will continue as before and tax exemption can be claimed on all types of investments. Taxpayers have to choose one system wisely based on their financial situation and investments.
Tax exemption limit also increased
From April 1, the limit of non-taxable interest under fixed deposits (FD), recurring deposits (RD), and other savings schemes will increase. From the next financial year, senior citizens will not have to pay any tax on income up to ₹ 1 lakh from interest. Till now this limit was ₹ 50 thousand. Similarly, the limit of non-taxable interest for other people will increase from ₹ 40 thousand to ₹ 50 thousand. This change is great news for the people who save.
Payment will not be made from a UPI ID with an inactive mobile number
Consumers will not be able to make payments from UPI IDs linked to inactive mobile numbers. According to the recent guidelines of the National Payments Corporation of India (NPCI), inactive mobile numbers will be removed from UPI IDs from April 1. Therefore, if your mobile number is inactive, activate it as soon as possible to continue your UPI services.
Less tax on sending money to children studying abroad
RBI’s Liberalized Remittance Scheme is also coming into effect from April 1. Under this, no tax will have to be paid on sending up to ₹ 10 lakh for the fees or other expenses of children studying abroad. Till now this limit was ₹ 7 lakh. Sending more money than this was taxed at the rate of five percent. This change is a big relief for the parents of students studying abroad.
New pension scheme for central employees
The new pension scheme for central employees, Unified Pension Scheme (UPS), will come into effect from April 1. This will benefit about 23 lakh employees. Under the new scheme, employees will get a pension equal to 50 percent of the average monthly salary of the last 12 months on a minimum of 25 years of service. This change will strengthen the financial security of employees after retirement.
GST related changes
It will be mandatory for traders having an annual turnover of more than ₹ 10 crore to report the same on the invoice registration portal within 30 days of issuance of the e-invoice. Earlier there was no time limit for this.
Apart from this, if a trader has multiple GST registrations in different states on the same PAN number, then it will be mandatory for such a trader to register as an Input Service Distributor (ISD) for the distribution of Input Tax Credit (ITC). These changes will promote transparency and compliance in the GST system.
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