On April 1, 2025, many changes are occurring in the country and the state.
It will have a direct impact on the finances of the average person. While some aspects will provide direct benefits, in many instances, you may also incur losses.
Let us know about the changes that have been implemented for the common man, including farmers, the elderly, youth, students, and mothers and sisters.
If you are a resident of India, you need to be aware of these regulations.
Change in the rules of UPI
National Payments Corporation of India (NPCI) will deactivate the Unified Payments Interface (UPI) accounts of users who have been inactive for an extended period, starting April 1, 2025. If you have not conducted any UPI transactions for a significant amount of time, your UPI ID will be closed.
In addition, dormant accounts will be closed. To prevent fraud, UPI IDs that have not been used in the last 12 months will also be disabled.
UPI accounts that have been linked to mobile numbers and remain inactive for an extended period will be removed from bank records.
If your phone number is linked to the UPI app and you have not used it for an extended period, its services may be discontinued.
Fixed Deposit& Recurring Deposit
Good news! Starting April 1, you will receive higher returns on Fixed Deposits (FD) and Recurring Deposits (RD), along with increased interest rates, which will be beneficial for you.
The bank will not deduct TDS on interest earned up to ₹1 lakh from the schemes.
However, this limit has been established only for senior citizens. Previously, this limit was ₹0, which has now been increased to ₹1 lakh.
For other investors, the limit has been increased from ₹400 to ₹ 00.
There has also been a change in the interest rates for savings accounts and fixed deposits (FDs).
From SBI to HDFC Bank, IND Bank, Punjab and Sindh Bank, and IDBI Bank, all have adjusted their interest rates for fixed deposits and special fixed deposits.
Additionally, to receive dividends, it has now become necessary to link your PAN with your Aadhaar. Otherwise, you will not receive dividends on your stocks.
If you work in the stock market, it is essential to link your PAN with your Aadhaar.
Demat and Mutual Fund
Under the new regulations, all investors are required to update their Know Your Customer (KYC) and nominee details for their demat and mutual fund accounts.
If you do not complete this action, your account may be frozen.
Not only is there a minimum balance requirement for savings accounts, but it is also mandatory to maintain a GST account. Failure to do so may result in penalties imposed by the bank. Additionally, significant changes have been made to the GST regulations, which will assist input service distributor businesses in managing their tax liabilities more effectively.
Under the new regulations, all investors are required to update their Know Your Customer (KYC) and nominee details for their demat and mutual fund accounts.
If you do not complete this action, your account may be frozen.
Not only is there a minimum balance requirement for savings accounts, but it is also mandatory to maintain a GST account. Failure to do so may result in penalties imposed by the bank. Additionally, significant changes have been made to the GST regulations, which will assist input service distributor businesses in managing their tax liabilities more effectively.
Pension Scheme Update
A new notification regarding the pension scheme has been issued for Central Government employees. All employees enrolled in the National Pension System (NPS) will receive a guaranteed pension amounting to 50% of the average salary earned over the last 12 months.
They can choose either the UPS or the OPS. The government will contribute 18.5%, while the employees will contribute 10%.
National Highway Authority of India (NHAI)
NHAI may increase toll tax rates starting March 31, which could directly affect your highway travel.
Passengers traveling on the Delhi-Meerut Expressway, Eastern Peripheral Expressway, and NH 9 may also face increased toll fees.
Updated Debit Card Rules
Significant updates are also on the way for the RuPay Debit Select Card.
Personal accident coverage of up to ₹1 lakh will be provided for death or permanent disability resulting from an accident.
While a free gym membership facility will be available each quarter with the launch of the new Tax E, the Unified Pension Scheme (UPS), which provides a guaranteed pension to central employees, is set to launch on April 1.
Central government employees will be able to apply through the portal starting April 1.
Starting April 1st, many banks, including the State Bank of India and Punjab National Bank, will amend the rules regarding the minimum balance requirements for their customers’ savings accounts.
Income Tax New Slab
Discussing the most important topics, tax slab, let us inform you that…
In Budget 2025, relief will be provided to the middle class government has made several significant announcements, including adjustments to tax slabs, TDS tax rebates, and other related matters, while the previous system…
Income Tax Act of 1961: A New Income tax bill was proposed as a replacement for the previous legislation.
Changes will come into effect on April 1, 2025. Under the new tax law, individuals earning up to ₹12 lakh annually will be exempt from paying taxes.
TDS, we would like to inform you that the TDS rules have also been updated.
Limits have been increased in various sections to minimize unnecessary deductions and enhance cash flow for taxpayers.
Thank you.