Big news for the common people of India. March is wrapping up, and April is just around the corner. Just like in March, several rules are set to change in April, which will have both positive and negative effects on everyday people’s finances.
Additionally, there could be penalties for not adhering to these new regulations. These changes will include adjustments in LPG gas cylinder prices, updates to banking rules, and modifications to TDS, GST, and more. Let’s dive into the details of these changes…
LPG Price
LPG prices are reviewed on the first day of each month. Government oil companies adjust the costs of both domestic and commercial cylinders based on market conditions. This will directly affect consumers and businesses alike.
Major UPI Changes Ahead
Starting April 1, a new rule regarding UPI payments will come into effect. The National Payments Corporation of India (NPCI) has mandated the use of the Mobile Number Revocation List (MNRL) on the Digital Intelligence Platform (DIP) to combat fraud. Banks and payment service providers (PSPs) must update their databases by March 31 to remove inactive or changed mobile numbers. After this update, UPI transactions linked to inactive numbers will no longer be possible.
MFA Rules for GST
From April 1, the Input Tax Distributor System (ISD) will be introduced. This means businesses must register for Input Tax Credit (ITC). Previously, businesses had the choice to register for ITC, but now, if they opt out, they won’t receive ITC for the recipient location. Non-compliance could result in fines of up to Rs 10,000.
Changes in Banking Regulations
Starting April 1, 2025, the Reserve Bank of India will implement several new banking rules that will impact account holders at various public sector banks, including SBI, PNB, Canara, and HDFC. There will be new minimum balance requirements…
If customers manage to exceed the allowed number of free transactions, they might face a penalty. According to the ATM transaction policy, additional fees can be charged for free withdrawals that go beyond the set limit. Right now, many banks provide the option for free ATM withdrawals ranging from three to five times a month at their own machines.
Updates on TDS Regulations
With the Central Government’s recent announcement, there will be changes to tax deduction (TDS) and tax collection at source (TCS) rules starting from April 1, 2025, marking the beginning of the new financial year. In the Budget, it was revealed that the TDS threshold for senior citizens has been increased to Rs 1 lakh.
The TDS limit for rental income will rise from Rs 2.4 lakh to Rs 6 lakh per financial year. Additionally, the TCS limit for the RBI’s Liberalised Remittance Scheme for international transactions has been raised to Rs 10 lakh. The TCS on education loans from certain financial institutions has been eliminated. Previously, a 0.5% TCS was applied to education loans up to Rs 7 lakh, while a 5% TCS was charged on amounts exceeding that.
Furthermore, the TDS limit for dividend income has been increased to Rs 10,000, and the same limit applies to income from mutual fund units, set at Rs 10,000 per financial year.