New Financial Year 2025: Key Changes in UPI, GST & Tax Slabs

New Financial Year 2025: UPI, Income Tax, GST, and More

As the new financial year (FY 2025-26) begins on 1 April, 2025, several important updates will affect various sectors including UPI payments, income tax, GST, and personal finance. Citizens and taxpayers are urged to stay updated on these changes to avoid disruptions.

Changes to UPI Payments from April 1: Inactive Numbers Will Be Restricted

Starting 1 April, 2025, the National Payments Corporation of India (NPCI) will enforce new guidelines to improve the security of UPI payments. Inactive mobile numbers linked to UPI accounts will be deactivated to protect users from security threats. Both public and private sector banks, including State Bank of India and HDFC Bank, along with third-party UPI platforms like PhonePe and Google Pay, will implement these changes.

To prevent losing access to your UPI account, it is recommended that users update their details with their bank if their mobile number has been inactive. Ensure to complete this by 1 April, 2025, to avoid disruptions.

New Income Tax Slabs and TDS Relief: Key Changes from April 1, 2025

Union Finance Minister Nirmala Sitharaman has announced updated income tax slabs under the new regime that will be applicable from 1 April, 2025. The major changes include:

• Income up to ₹12 lakh: Tax-free for individuals under the new tax regime.
• Standard Deduction: A ₹75,000 deduction, making a salary of ₹12.75 lakh tax-free.
• Basic Exemption Limit: Raised from ₹3 lakh to ₹5 lakh, benefiting lower-income taxpayers. 

Additionally, the TDS limit for investors has been increased from ₹5,000 to ₹10,000, meaning TDS will now apply only to dividend income above ₹10,000.

Credit Card Rewards and Minimum Bank Balance Requirements

Several changes will affect credit card holders:

• SBI Card Simply CLICK and Air India SBI Platinum Credit Card customers will notice changes to their rewards point structure.
• Axis Bank’s Vistara Credit Card benefits will be adjusted following the Air India-Vistara merger.

Moreover, starting 1 April, public sector banks like SBI, Canara Bank, and PNB will introduce new minimum balance requirements based on rural, semi-urban, and urban areas. Customers failing to meet the updated balance may incur penalties.

Unified Pension Scheme (UPS) Implementation

The Unified Pension Scheme (UPS), which replaces the old pension system (OPS), will be implemented from 1 April, 2025. The scheme, impacting around 23 lakh central government employees with at least 25 years of service, will offer a pension equivalent to 50% of the last 12 months’ average basic salary for eligible employees.

GST Portal Enhances Security with Multi-Factor Authentication

Starting 1 April, the Goods and Services Tax (GST) portal will require multi-factor authentication (MFA) to increase security. Additionally, E-Way Bills (EWBs) can only be generated for base documents not older than 180 days, ensuring compliance and improving the system’s overall integrity.

National Highway Toll Hike

Several national highway tolls will increase from April 1, 2025, including the following:

• Lucknow: Toll hikes of ₹5 for light vehicles and ₹25 for heavy vehicles.
• Delhi-Meerut Expressway: A ₹5 increase for cars to ₹170. Light commercial vehicles will now pay ₹275, and trucks will pay ₹580.
• Chhijarsi Toll Plaza on NH-9: New tolls of ₹175 for cars, ₹280 for light commercial vehicles, and ₹590 for buses and trucks.
• Ghaziabad to Meerut: A ₹5 increase to ₹75.
• Delhi-Jaipur Highway: Commercial vehicles will face increased tolls, with fees ranging from ₹85 to ₹1,255. 

LPG Gas Cylinder Prices Revised

The prices of 19 kg commercial LPG cylinders have been reduced by ₹41 starting 1 April, 2025. Previously, LPG cylinder prices were reduced by ₹7 on February 1, 2025. Here are the updated prices across major cities:

• New Delhi: ₹1,762
• Mumbai: ₹1,713
• Bengaluru: ₹1,836
• Chennai: ₹1,921
• Hyderabad: ₹1,985
• Kolkata: ₹1,868

These changes will impact businesses and consumers, particularly in sectors involving transportation and cooking gas.

Stay informed about these changes to ensure that you comply with the new regulations and benefit from the updates starting from 1 April, 2025.

As the new financial year begins on 1 April, 2025, it’s important to stay ahead of changes in UPI payments, income tax slabs, GST regulations, credit card policies, and more. These updates may impact both individuals and businesses, and staying informed is key to avoiding disruptions. For professional guidance on how these changes affect you or your business, Vakilsearch can provide the support you need to navigate this transition smoothly.

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Martina Arokiyaraj

CMS Content Assistant at Vakilsearch

I'm Martina Arokiyaraj A, a CMS Content Assistant at Vakilsearch. I focus on simplifying legal topics into easy-to-understand articles. As a regular contributor to the Vakilsearch news portal, my aim is to keep you informed about the latest in law, compliance, taxation, and more. I make sure you stay updated with Vakilsearch experts' insights on every piece of news, how it impacts you, and the steps you should take.

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