{"id":69746,"date":"2025-04-01T11:48:37","date_gmt":"2025-04-01T06:18:37","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?p=69746"},"modified":"2025-08-05T11:36:55","modified_gmt":"2025-08-05T06:06:55","slug":"new-financial-changes-2025","status":"publish","type":"post","link":"https:\/\/www.5paisa.com\/finschool\/new-financial-changes-2025\/","title":{"rendered":"New Financial Changes Effective April 1, 2025: What You Need to Know"},"content":{"rendered":"\t\t
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As we enter the financial year<\/a> 2025-26, numerous new regulations, policies, and updates come into effect, bringing changes that impact individuals and businesses across India. These financial changes, updates, announced in the Union Budget 2025 and various government directives, aim to promote economic growth, enhance financial security, and provide relief to taxpayers. Staying informed about these changes is crucial to making the most of the new financial landscape.<\/p>

\"Financial<\/p>

Key Financial Changes Effective from 1st April 2025 are as follows :\u00a0<\/h2>

Revised Income Tax Slabs<\/strong><\/h2>

\"Revised<\/p>

One of the most significant changes is the revision of income tax slabs under the new tax regime. The government has introduced a progressive tax structure with increased thresholds, providing substantial relief to taxpayers. The revised income tax slabs for the financial year 2025-26 are as follows:<\/p>

Income Range (\u20b9)<\/strong><\/p><\/td>

Tax Rate (%)<\/strong><\/p><\/td><\/tr><\/thead>

0 – 4,00,000<\/p><\/td>

Nil<\/p><\/td><\/tr>

4,00,001 – 8,00,000<\/p><\/td>

5%<\/p><\/td><\/tr>

8,00,001 – 12,00,000<\/p><\/td>

10%<\/p><\/td><\/tr>

12,00,001 – 16,00,000<\/p><\/td>

15%<\/p><\/td><\/tr>

16,00,001 – 20,00,000<\/p><\/td>

20%<\/p><\/td><\/tr>

20,00,001 – 24,00,000<\/p><\/td>

25%<\/p><\/td><\/tr>

Above 24,00,000<\/p><\/td>

30%<\/p><\/td><\/tr><\/tbody><\/table>

Under the new tax regime, individuals earning up to \u20b912 lakh annually are exempt from paying income tax due to a rebate under Section 87A. For salaried individuals, the standard deduction of \u20b975,000 further increases the tax-free income threshold to \u20b912.75 lakh. These changes aim to alleviate financial stress for taxpayers while stimulating consumption and investment.<\/p>

Unified Pension Scheme for Government Employees<\/strong><\/h2>

The Unified Pension Scheme replaces the Old Pension Scheme and provides enhanced benefits for eligible government employees. Employees with a minimum of 25 years of service are entitled to a pension equivalent to 50% of their last 12 months’ average basic salary. Payouts are inflation-adjusted, ensuring retirees’ financial security in the long term. This scheme reflects the government\u2019s commitment to supporting its workforce even after retirement.<\/p>

\"Stricter<\/h2>

The National Payments Corporation of India (NPCI) has introduced new regulations for Unified Payments Interface (UPI) transactions, effective April 1, 2025. These changes aim to enhance security, improve interoperability, and provide a seamless user experience. Here are the key updates:<\/p>

  1. Deactivation of Inactive Mobile Numbers<\/strong>: UPI IDs linked to inactive mobile numbers will be deactivated. This measure ensures that recycled or reassigned mobile numbers do not lead to unauthorized access or transaction errors. Users must keep their registered mobile numbers active and updated with their banks to avoid disruptions in UPI services.<\/li>
  2. Weekly Database Updates<\/strong>: Banks and Payment Service Providers (PSPs) are now required to update their databases weekly using the Mobile Number Revocation List (MNRL) and Digital Intelligence Platform (DIP). This step minimizes errors caused by mobile number churn, where previously assigned numbers are reallocated to new users.<\/li>
  3. Explicit User Consent for UPI Number Seeding<\/strong>: UPI apps must obtain explicit user consent before seeding or porting a UPI number. The consent mechanism now requires users to opt in manually, ensuring transparency and preventing misleading or forceful messaging. Consent cannot be sought during or before a transaction, reinforcing user control over their data.<\/li>
  4. Removal of the “Collect Payments” Feature<\/strong>: To combat fraud, the “Collect Payments” feature is now restricted to large, verified merchants. For person-to-person transactions, a limit of \u20b92,000 has been set. This change aims to reduce misuse of the pull-payment system while maintaining its utility for legitimate purposes.<\/li>
  5. Numeric UPI IDs<\/strong>: UPI applications will now offer numeric UPI IDs, but users must actively choose to enable this feature. By default, numeric UPI IDs are opted out, and users need to provide explicit permission to activate them. This ensures that users have full control over their UPI settings.<\/li>
  6. Monthly Reporting by PSPs<\/strong>: Payment Service Providers (PSPs) must report cases where they locally resolve UPI numbers due to delays in NPCI’s system responses. This monthly reporting ensures transparency and accountability, driving improvements in the UPI ecosystem.<\/li>
  7. Impact on Users<\/strong>: Users who fail to update their mobile numbers with their banks or UPI apps may face issues such as:<\/li><\/ol>