Starting April 1, 2025, several major regulatory and financial updates will take effect, impacting citizens nationwide. From revised tax slabs and UPI security measures to the implementation of the Unified Pension Scheme, here’s a breakdown of what to expect.
Revised Tax Slabs and Rates
The new tax structure, announced by Union Finance Minister Nirmala Sitharaman in the annual budget, will be implemented from April 1. Under the revised system, individuals earning up to ₹12 lakh annually will be exempt from paying income tax. Additionally, salaried employees will benefit from a standard deduction of ₹75,000. This means individuals with a salary of up to ₹12.75 lakh per year will effectively pay no taxes under the new regime.
Unified Pension Scheme (UPS)
Initially introduced in August 2024, the Unified Pension Scheme (UPS) will officially roll out from April 1, 2025. Designed to support around 23 lakh central government employees, the scheme ensures that those with at least 25 years of service receive a pension equivalent to 50% of their average basic salary over the last 12 months, providing financial stability post-retirement.
UPI Security Enhancements
To strengthen security in digital payments, the National Payments Corporation of India (NPCI) has introduced new guidelines for the Unified Payments Interface (UPI). From April 1, banks and third-party UPI providers (such as PhonePe and Google Pay) must adopt measures to phase out inactive mobile numbers, which pose security risks.
Inactive UPI-linked numbers often remain active even after users change or deactivate their SIM cards, making them vulnerable to misuse.
“The Banks, PSP App shall use the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP) and update their database accordingly at regular intervals, at least on a weekly basis,” NPCI stated.
Users with inactive or unused mobile numbers are advised to update their details with their banks before April 1 to prevent disruptions in UPI transactions.
GST Reforms
The Goods and Services Tax (GST) system is also undergoing updates for the new financial year. Multi-factor authentication (MFA) will now be mandatory for all taxpayers accessing the GST portal to enhance security. Additionally, E-Way Bills (EWBs) can only be generated for base documents issued within the last 180 days.
For those filing GSTR-7 (related to tax deductions at source or TDS), returns must be filed sequentially without skipping months. Another significant update requires promoters and directors to undergo biometric authentication at a GST Suvidha Kendra.
These regulatory changes aim to improve financial security, streamline taxation, and enhance digital transaction safety, marking a significant shift in the financial landscape starting April 1, 2025.
