Changes in Income Tax to UPI, 7 New Financial Rules That Come Into Effect From April 1st 2025

Financial Rule Change from 1st April: As the new financial year kicks off on April 1st, 2025, several important financial rule changes have come into effect. These changes are set to impact the daily lives of common people, ranging from how we pay for services via UPI to the way we manage our income tax returns, credit card usage, and more. In this article, we’ll cover the major updates that are relevant to you, with a particular focus on income tax, UPI, LPG prices, and other important financial aspects.

Income Tax Slab Changes Offer Big Relief

One of the most notable changes this year is in the income tax regime. Finance Minister Nirmala Sitharaman announced that taxpayers can now avail an exemption of up to ₹12 lakh under the new Income Tax system. This is a significant relief for many individuals, as it means that no tax will be levied on earnings up to ₹12 lakh. If you fall under this category, you can file your Income Tax Return (ITR) without worrying about paying taxes on this portion of your income. This change comes into effect today, so if you’re filing your ITR, make sure to take advantage of this update.

LPG Cylinder Price Update

Along with other financial rule changes from April 1st, 2025, the price of 19 kg commercial LPG cylinders has been reduced by ₹41. This reduction brings welcome relief to businesses, especially restaurants and eateries that rely on LPG for cooking. The updated price for a 19 kg commercial cylinder is ₹1,762 in New Delhi, ₹1,713 in Mumbai, ₹1,836 in Bengaluru, ₹1,921 in Chennai, ₹1,985 in Hyderabad, and ₹1,868 in Kolkata. With this latest reduction, businesses can expect some savings, which may help in lowering operational costs.

UPI Rule Changes from 1st April

The National Payments Corporation of India (NPCI) has made some changes to the UPI (Unified Payments Interface) rules, which could cause inconvenience for a few users. If your phone number becomes inactive or is closed, your UPI service linked to that number will stop functioning. Additionally, if you haven’t used UPI for a long time, you may be required to update your details with the bank. Failure to do so could result in the suspension of your UPI service. It's crucial to ensure that your number is active and linked properly to avoid any disruptions in using UPI for your transactions.

GST Rule Changes from 1st April

Another significant update that comes into effect today concerns the Goods and Services Tax (GST). The government has introduced some key changes, including mandatory Multi-Factor Authentication (MFA) for taxpayers when they log into the GST portal. This enhanced security measure aims to protect sensitive financial information. Moreover, e-way bills can now only be generated for documents that are less than 180 days old. Traders will need to ensure that their e-way bills are timely and within the specified period to avoid penalties.

Changes in Minimum Bank Account Balance Rules

Several banks, including SBI, PNB, and Canara Bank, have updated their minimum balance requirements. From April 1st, customers must ensure they maintain the minimum required balance in their accounts, or they may face penalties. This change affects many individuals who don’t regularly monitor their bank account balances. It’s advisable to check with your bank regarding the updated minimum balance rules to avoid any unnecessary charges.

Credit Card Rules Update from 1st April

If you use credit cards, you may notice some important changes that could impact your rewards and spending. For example, SBI’s SimplyClick credit card has reduced Swiggy reward points from 10x to 5x. Similarly, Air India’s credit card will now offer fewer Signature reward points, dropping from 30 to 10. These changes mean that users who rely on credit card points for discounts and rewards may see a decrease in benefits. It’s important to check your card’s terms and conditions to stay informed about these changes.

Unified Pension Scheme (UPS) to Come Into Effect from 1st April

The new Unified Pension Scheme (UPS), which replaced the Old Pension Scheme (OPS), will now officially come into effect. This change will impact around 23 lakh central government employees who have completed at least 25 years of service. Under the new UPS, eligible employees will receive a pension equal to 50% of their average basic salary from the last 12 months of service. This update marks a significant shift in how pensions are handled for long-serving government employees.