New Delhi: Several financial changes will take effect with the start of the new fiscal year on April 1, 2025. The changes, including a revised income tax slab, TDS relief, and the introduction of the Unified Pension Scheme, among others, will transform personal finance for millions of people nationwide.
Here are the significant changes taking effect from April 1 that will affect taxpayers, pensioners, and digital payment users.
Under the new tax regime, people earning up to Rs 12 lakh annually would not be required to pay income tax. Under the new tax regime, for salaried individuals, a standard deduction of Rs 75,000 will apply, making Rs 12.75 lakh salary tax-free.
The dividend tax deduction threshold limit has been increased to Rs 10,000 from Rs 5,000. Starting April 1, 2025, for equities and MF investors, the tax will be deducted at source when dividend income exceeds Rs 10,000. The TDS threshold for insurance commission has been increased from Rs 15,000 to Rs 20,000. For general citizens, the TDS threshold for interest income has been increased from Rs 40,000 to Rs 50,000, effective April 2025.
Central government employees, who joined from 2004, will have the opportunity to switch to the Unified Pension Scheme, which offers an assured pension of 50% of last salary drawn, inflation adjustment and a 10,000 monthly payout after serving for 10 years.
Starting April 1, the cost of around 900 essential medicines, including those used to treat heart disease, diabetes, and infections, will increase. The prices of these medicines will increase by 1.74 percent.
The Centre permits a yearly raise to offset price increases, which will result in a roughly 3% increase in the toll on NH. The updated prices, which go into effect on April 1, will impact both commercial operators and commuters on important routes including the Lucknow highways, Delhi-Meerut Expressway, Eastern Peripheral Expressway, NH-9, and the Delhi-Jaipur highway.
Bringing the much needed relief to the common man, Oil marketing companies have revised the prices of commercial LPG gas cylinders effective from 1 April 2025. The rate of a 19 kg commercial LPG gas cylinder has been reduced by Rs 41, effective from 1 April 2025. In Delhi, the retail sale price of a 19 kg commercial LPG cylinder is Rs 1762 now. However, the prices of domestic LPG cylinders will remain unchanged.
The GST system has been modified to require taxpayers to complete MFA when they log into the GST portal. Additionally, E-Way bills can now only be created for base documents that are no more than 180 days old.
Starting April 1, mobile number records will be updated weekly by banks and UPI apps to reduce transaction processing errors. Due to security concerns, banks and UPI providers will gradually remove dormant UPI-linked numbers. Inactive numbers cannot be used to make payments.
From April 1, home loan borrowers can apply for Priority Sector Loans up to Rs 50 lakh in metro cities, Rs 45 lakh in Tier-2 cities, and Rs 35 lakh in small cities.
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