New Rules: The commencement of the new financial year 2025-26 is just a few days away, and significant changes are anticipated that could impact individuals’ financial situations. Notably, alterations to regulations governing ATM transactions and TDS are set to take effect soon.
Key changes effective from April 1 include:
1. Positive Pay System
As reported by various media outlets, numerous banks are expected to introduce the Positive Pay System starting April 1. This system will require verification of the check number, date, payee’s name, and amount for any check transaction exceeding Rs 5,000, aiming to mitigate instances of financial fraud.
2. LPG, CNG, and PNG Pricing
Oil companies are mandated to adjust the prices of LPG, CNG, and PNG on the first day of each month. Consequently, there may be fluctuations in the prices of these fuels on April 1.
3. ATM Regulations
Several modifications concerning ATM operations are anticipated on April 1. Reports suggest that banks may lower the withdrawal limit, and the fee for cash withdrawals beyond the free limit could rise from Rs 17 to Rs 19. Currently, individuals in metropolitan areas such as Delhi, Mumbai, and Kolkata can make up to three free cash withdrawals. Exceeding this limit incurs a fee.
4. TDS Adjustments
Significant changes regarding TDS are also expected on April 1. According to media reports, the government may raise the TDS threshold for senior citizens to Rs 1 lakh, an increase from the current limit of Rs 50,000.
5. TDS on Rent Payments
Additionally, the TDS limit on rent paid to landlords may be increased to Rs 6 lakhs annually, up from the current threshold of Rs 2 lakhs per year.
6. TDS on Foreign Transactions
There is also a possibility of an increase in the TDS limit for foreign transactions, which is projected to rise to Rs 2.4 lakhs per year.
7. Education Loan TDS
Changes may also occur regarding the TDS applicable to education loans.