As we enter the new fiscal year (April 1, 2025 – March 31, 2026), individuals, businesses, and investors are set to be affected by various important changes in tax laws, financial systems and banking services. These modifications range from change in income tax slabs and TDS thresholds to introduction of new pension schemes and UPI transaction laws. Here’s a breakdown of the latest changes that come into effect from April 1, 2025.
New income tax slabs
With the start of the new financial year (April 1, 2025 – March 31, 2026), the government has introduced an important change in the income tax slabs under the new tax regime.
The new tax regime will have new income tax slabs for FY2025-26. The highest tax rate of 30% will apply to income above Rs 24 lakh in the new tax regime in FY2025-26.
TDS relief
For non-senior citizens (general citizens), the government has increased the TDS threshold for interest income from Rs 40,000 to Rs 50,000. This change is effective from April 1, 2025.
For senior citizens, the government has increased the TDS threshold for interest income from Rs 50,000 to Rs 1 lakh. This will help individuals earn more interest income without immediate tax deductions, especially benefitting those with relatively smaller interest earnings.
Unified Pension Scheme
The new Unified Pension Scheme (UPS), which was introduced in August 2024 as an alternative to the NPS. NPS was introduced as a replacement of the Old Pension Scheme (OPS). However, a large section of government employees kept demanding re-introduction of the OPS. UPS was introduced as a solution following this demand. The UPS is being implemented starting April 1, 2025. The UPS is designed to provide employees with a pension equal to 50% of their average basic income over the last 12 months immediately preceding retirement, provided their service period is at least 25 years.
Unified Pension Scheme: PFRDA notifies UPS new rules, applicable from April 1, 2025 ; Check eligibility, contribution, retiral benefits & more
Changes in UPI rules
Before assigning or modifying a numeric UPI ID, UPI apps will ask for clear and explicit authorization from the user. By default, users should be opted out and if they want to use this functionality, they must explicitly opt in. Apps cannot request this consent during a transaction to avoid confusion.
Small Savings Schemes kept unchanged
The government has kept the interest rates of the Post Office Small Savings Scheme unchanged for the April- June 2025 quarter. This includes schemes like the Public Provident Fund (PPF), National Savings Certificate (NSC), and others. By maintaining the current interest rates, the government aims to provide stability for investors in small savings schemes, particularly those relying on these instruments for long-term savings and retirement planning.
SBI credit card changes
Key modifications include the removal of complimentary flight ticket vouchers as part of renewal and milestone benefits, along with a reduction in reward points for certain spending categories. Cardholders will earn fewer points for Swiggy transactions and Air India ticket bookings on select cards.
Link: SBI Card revises reward benefits: Major changes effective from April 1, 2025, on these cards; check details
PM Internship Program’s last date extended
The Prime Minister’s Internship Program (PMIP) application deadline for 2025 is extended to April 15, 2025 from March 31, 2025. The Prime Minister’s Internship Scheme is a Government of India initiative aimed at providing internship opportunities to youth in top Indian companies . The program offers youth exposure to real-life business environments across sectors, helping them gain valuable skills and work experience
Mahila Samman Savings Certificate
The Mahila Samman Savings Certificate (MSSC), a government-backed small savings scheme introduced to encourage financial inclusion and empowerment of women, has not been extended beyond March 31, 2025. Individuals who intended to invest under this scheme but did not do so before the deadline will no longer be able to open a new account under this program.
However, those who have already invested in MSSC before the deadline will continue to earn interest at the committed 7.5% rate until their investment matures.
