New Tax Rates, UPI, and GST: Key Changes Taking Effect from April 1, 2025

New Income Tax Rules: Key Financial Changes Effective April 1, 2025

Starting April 1, 2025, a series of regulatory and financial changes will take effect, impacting taxpayers nationwide. These include revisions to tax slabs, updates to the Unified Payments Interface (UPI), and the introduction of the Unified Pension Scheme.

Revised Tax Slabs and Rates

Following the announcement by Union Finance Minister Nirmala Sitharaman in the annual budget, the updated tax structure will be implemented from April 1. Under the new regime, individuals earning up to ₹12 lakh annually will be exempt from income tax.

Additionally, salaried individuals will benefit from a standard deduction of ₹75,000, effectively making incomes up to ₹12.75 lakh tax-free.

These changes aim to provide relief to middle-income earners while ensuring a progressive taxation structure. Stay updated on additional financial and regulatory shifts expected in the new fiscal year.

Unified Pension Scheme

The Unified Pension Scheme (UPS) was launched by the central government in August 2024 but will be implemented from April 1, 2025. It is expected to benefit around 23 lakh central government employees. Those with at least 25 years if service will receive a pension equivalent to 50 per cent of their last 12 months' average basic salary to ensure financial security post-retirement.

UPI and GST: Key Changes Effective April 1, 2025

UPI Security Enhancements

To improve the security and efficiency of the Unified Payments Interface (UPI), the National Payments Corporation of India (NPCI) has issued new directives, set to take effect from April 1, 2025. Banks and third-party UPI providers such as PhonePe and Google Pay will be required to implement measures to phase out inactive mobile numbers linked to UPI accounts.

Inactive numbers pose a security risk, as users who change or deactivate their mobile numbers often leave their UPI accounts vulnerable to misuse. To address this, NPCI has mandated that banks and payment service providers (PSPs) regularly update their databases using the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP) at least once a week.

If your mobile number has been inactive for a long period, ensure it is updated with your bank before April 1, 2025, to avoid losing access to UPI services.

GST Updates and Compliance Changes

With the start of the new financial year, the Goods and Services Tax (GST) framework will see significant updates aimed at improving security and compliance.

• Mandatory Multi-Factor Authentication (MFA): Taxpayers will be required to use MFA for enhanced security on the GST portal.

• E-Way Bill (EWB) Validity: EWBs can now only be generated for base documents issued within the last 180 days.

• GSTR-7 Filing Rules: Taxpayers filing GSTR-7 for tax deducted at source (TDS) must now file returns sequentially without skipping months.

• Biometric Authentication: Promoters and directors will need to visit a GST Suvidha Kendra for biometric verification as part of the compliance process.

These updates aim to strengthen the security and efficiency of digital transactions and tax administration. Stay informed and ensure compliance before the changes take effect.