Financial Year 2025-26: Important Changes in Tax and Financial Rules from April 1
1 Apr, 2025 11:54 IST|Sakshi Post
The start of the new financial year has brought several significant changes that will impact your personal finances, from income tax revisions to updates on TDS limits and credit card reward systems. Here’s a closer look at the key financial updates:
1. Income Tax Revisions: A Boon for Taxpayers
The new income tax regime, effective from April 1, 2025, offers several benefits, especially for middle-income earners. Individuals earning up to ₹12 lakh annually will now be exempt from paying income tax. Furthermore, salaried individuals can now enjoy a standard deduction of ₹75,000, effectively increasing their non-taxable income limit to ₹12.75 lakh.
2. Standard Deduction Benefit Increases
For salaried individuals and pensioners, the standard deduction has been increased from ₹50,000 to ₹75,000. This change will provide more relief, making it easier for individuals to manage their finances.
3. Higher TDS Limit for Senior Citizens
To support senior citizens, the TDS (Tax Deducted at Source) limit on interest income from bank fixed and recurring deposits has been raised from ₹50,000 to ₹1 lakh. For individuals under the age of 60, the TDS threshold has been increased from ₹40,000 to ₹50,000, offering more financial flexibility.
4. TDS Limit Increase for Insurance Brokers
The TDS threshold on commission income earned by insurance brokers has been raised from ₹15,000 to ₹20,000, helping brokers retain more of their earnings.
5. UPI IDs Deactivated for Inactive Accounts
For security reasons, UPI IDs linked to inactive or non-operational accounts will now be deactivated. Users with such accounts will need to reactivate them and, if necessary, create new UPI IDs to continue using the service.
6. Mutual Fund Regulations Tightened
According to new regulations from SEBI (Securities and Exchange Board of India), mutual fund investments must now be utilized within 30 working days after the issue is closed, ensuring timely deployment of investor funds.
7. Specialized Investment Funds (SIFs)
SEBI has introduced a new category of Specialized Investment Funds (SIFs), which will require a minimum investment of ₹10 lakh. This move aims to cater to high-net-worth investors with a focus on more targeted investment opportunities.
8. Demat Account Statements in DigiLocker
Investors can now receive their demat account statements and consolidated account statements directly in their DigiLocker, making it easier for them and their nominees to access investment details in one secure location.
9. SBI Credit Card Reward Changes
SBI has updated its credit card reward system, particularly impacting those who shop on Swiggy. Reward points for purchases made using the Simply Click SBI Card on Swiggy have been reduced from 10x to 5x, affecting the earning potential for cardholders.
10. Tariff Reductions on U.S. Imports
In response to demands from the United States, India is planning to reduce tariffs on certain imported products, such as apples, almonds, and auto parts. This reduction is expected to lower the prices of these products, benefiting consumers.
These updates mark a pivotal moment in India’s financial landscape, providing both opportunities and challenges for taxpayers, investors, and consumers alike. Stay informed and plan your finances accordingly to make the most of these changes.
