- By Nidhi Giri
- Sat, 29 Mar 2025 04:34 PM (IST)
- Source:JND
Starting April 1, the financial year 2025-26 is set to begin. A slew of regulatory and financial changes will be coming into effect for citizens across India. From changes in the tax slabs to the Unified Payments Interface (UPI) to the launch of the Unified Pension Scheme, here's a complete list of the changes that you can expect.
The Union Budget 2025-26, presented in February, introduced significant changes in the income tax structure, eliminating tax up to an income of Rs 12 lakh. During her speech in the Parliament, Finance Minister Nirmala Sitharaman said that the move was aimed at benefiting taxpayers by boosting household consumption expenditure and encouraging increased investment.
No Income Tax On Rs 12 Lakh Annual Income
After Union Finance Minister Nirmala Sitharaman announced the new tax slabs and rates in the annual budget speech in the parliament, the revised tax structure will kick into effect, starting Tuesday, April 1. Individuals earning up to Rs 12 lakh annually will be exempt from paying taxes under the new regime. Salaried individuals will be eligible for a standard deduction of Rs 75,000 which effectively means an individual with salary upto Rs 12,75,000 is exempt from paying any taxes.
New Tax Slabs and Rates
0 to Rs 4 lakh – NIL
Rs 4 lakh to Rs 8 lakh – 5 per cent
Rs 8,00,001 to Rs 12,00,000 – 10 per cent
Rs 12,00,001 to Rs 16,00,000 – 15 per cent
Rs 16,00,001 to Rs 20,00,000 – 20 per cent
Rs 20,00,001 to Rs 24,00,000 – 25 per cent
Above Rs 24,00,000 – 30 per cent
Unified Pension Scheme (UPS)
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 of 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
The National Payments Corporation of India (NPCI) has announced a series of directives to enhance the security and efficiency of the Unified Payments Interface (UPI). These guidelines require banks and third-party UPI providers (PhonePe, GooglePay) to implement specific measures to phase out inactive numbers.
Inactive mobile numbers linked to UPI pose a security risk. When users change or deactivate their numbers, their UPI accounts often remain active, making them vulnerable to misuse.
If your mobile number is inactive or unused for a long time, update it with your bank before April 1, 2025, to avoid losing access to UPI payments.
GST
Multi-factor authentication (MFA) will be made mandatory for taxpayers for better security on the GST portal. Additionally, E-Way Bills (EWBs) can only be generated for base documents not older than 180 days. If you file GSTR-7 for tax deductions at source (TDS), you can no longer skip months or file out of order. Additionally, promoters and directors will now need to visit a GST Suvidha Kendra for biometric authentication.