GUWAHATI: As the new financial year begins on April 1, 2025, several significant updates in tax laws and banking regulations will come into effect. These changes, announced over the past few months, will impact taxpayers, investors, and regular banking users.
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Here’s a simplified breakdown of the major updates:
1. Higher Tax Exemption Limit
-Individuals earning up to ₹12 lakh per year will now be exempt from income tax.
-Salaried employees will receive a standard deduction of ₹75,000, effectively making income up to ₹12.75 lakh tax-free under the new tax regime.
2. UPI Deactivation for Inactive Numbers
-The National Payments Corporation of India (NPCI) will deactivate UPI IDs linked to mobile numbers that have been inactive for a long time.
-To prevent your UPI account from being deactivated, update your mobile number before April 1 if necessary.
3. Unified Pension Scheme (UPS)
-The new Unified Pension Scheme (UPS) will be introduced as an alternative to the National Pension System (NPS) for central government employees.
-Employees with at least 25 years of service will receive a pension equal to 50% of their average basic salary from the last 12 months.
4. PAN-Aadhaar Linking Deadline
-If PAN and Aadhaar are not linked by March 31, 2025, taxpayers will:
-Lose eligibility to receive dividend income.
-Face a higher TDS rate with no credit given in Form 26AS.
5. GST Portal Security Update
-Multi-factor authentication (MFA) will be made mandatory for accessing the GST portal.
-E-way bills can now only be generated for documents that are less than 180 days old.
6. Changes in Minimum Balance Requirements
-Major banks like SBI, PNB, and Canara Bank will revise their minimum balance requirements.
-Customers failing to maintain the required balance may face penalties starting April 1.
7. KYC Mandatory for Mutual Funds & Demat Accounts
-Know Your Customer (KYC) verification will be compulsory for all mutual fund and demat accounts.
-Nominee details will also need to be re-verified.
8. Revised Priority Sector Lending Limits
-Home loan borrowers can now avail higher loan limits under the Priority Sector Lending (PSL) scheme:
-Up to ₹50 lakh in metro cities.
-Up to ₹45 lakh in Tier-2 cities.
-Up to ₹35 lakh in smaller cities.
9. Positive Pay System for Cheques
-To reduce cheque fraud, banks will introduce a Positive Pay System (PPS).
-If issuing a cheque of ₹50,000 or more, account holders must electronically submit cheque details to the bank before clearance.
10. Higher TDS Exemption Limit for Senior Citizens
-The TDS exemption limit on interest income for senior citizens will increase to ₹1 lakh.
