New Financial Year Brings Major Tax, UPI, and GST Changes – Here’s What You Need to Know
As the new financial year kicks in on April 1, 2025, a wave of regulatory updates will take effect, impacting taxpayers, businesses, and digital payment users across India. From revised tax slabs to stricter UPI security measures and GST modifications, these changes aim to streamline processes while enhancing financial security. Here’s a breakdown of what’s coming:
Tax Relief for Middle-Income Earners
The revised tax regime, announced in the Union Budget, will exempt individuals earning up to ₹12 lakh annually from paying taxes. Additionally, salaried employees will benefit from a standard deduction of ₹75,000, effectively raising the tax-free income threshold to ₹12.75 lakh. This move is expected to provide significant relief to middle-class taxpayers.
Unified Pension Scheme for Government Employees
The Unified Pension Scheme (UPS), introduced last year, will officially roll out on April 1. Central government employees with at least 25 years of service will now receive a pension equivalent to 50% of their average basic salary from their last year of employment. This scheme is projected to benefit 23 lakh employees, ensuring better post-retirement financial security.
Stricter UPI Rules to Curb Fraud
To enhance digital payment security, the National Payments Corporation of India (NPCI) has mandated that banks and UPI apps like PhonePe and Google Pay must remove inactive mobile numbers linked to UPI IDs. Users who have changed their numbers but not updated their bank details risk losing UPI access. The deadline for compliance is April 1, 2025, so ensure your registered mobile number is active to avoid disruptions.
GST Portal Gets a Security Upgrade
The GST system is also undergoing key changes:
- Multi-Factor Authentication (MFA) will be compulsory for all GST portal logins.
- E-Way Bills can only be generated for invoices not older than 180 days.
- GSTR-7 (TDS) filers must submit returns in chronological order—no more skipping months.
- Promoters and directors must complete biometric authentication at GST Suvidha Kendras.
These updates aim to reduce tax evasion and improve compliance.
Stay Ahead of the Changes
With these reforms set to reshape financial transactions and tax liabilities, individuals and businesses must review their records, update bank details, and ensure compliance to avoid penalties or service disruptions.
