From income tax exemptions and UPI security upgrades to GST changes and the Unified Pension Scheme rollout — here’s everything that changes from April 1, 2025.
March 29, 2025: Starting April 1, 2025, several important financial and regulatory changes will come into effect across India. From income tax relief and enhanced digital payment security to new pension benefits and updated GST norms, here’s a complete breakdown of what’s changing:
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1. New Income Tax Slabs Under New Regime
Union Finance Minister Nirmala Sitharaman announced revised tax slabs in the Union Budget 2025, offering relief to middle-income earners. Starting April 1, individuals with an annual income up to ₹12 lakh will be exempt from paying income tax, with an additional standard deduction of ₹75,000 for salaried individuals.
| Income Range | Tax Rate |
|---|---|
| ₹0 – ₹4 lakh | 0% |
| ₹4 lakh – ₹8 lakh | 5% |
| ₹8 lakh – ₹12 lakh | 10% |
| ₹12 lakh – ₹16 lakh | 15% |
| ₹16 lakh – ₹20 lakh | 20% |
| ₹20 lakh – ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
2. Unified Pension Scheme (UPS) Rollout
Initially announced in August 2024, the Unified Pension Scheme will be implemented from April 1. It is expected to benefit over 23 lakh central government employees. Those with 25+ years of service will receive a pension equal to 50% of their average basic salary over the last 12 months.
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3. UPI: Security Guidelines For Inactive Numbers
To improve digital payment security, NPCI (National Payments Corporation of India) will enforce new rules on inactive mobile numbers linked to UPI.
- Banks and UPI apps (PhonePe, Google Pay) must regularly update their records using the Mobile Number Revocation List (MNRL) or Digital Intelligence Platform (DIP).
- Users are advised to update their phone numbers with banks before April 1 to avoid UPI disruptions.
4. GST Changes and New Compliance Rules
The GST portal is getting security and compliance upgrades from the new financial year:
- Multi-Factor Authentication (MFA) becomes mandatory for all taxpayers.
- E-Way Bills (EWBs) can only be generated for documents not older than 180 days.
- GSTR-7 (TDS returns) must now be filed in sequence — skipping months is not allowed.
- Promoters and directors will now need biometric authentication at GST Suvidha Kendras.
With these sweeping changes across taxation, digital payments, and compliance frameworks, April 1, 2025 marks a significant turning point in India’s financial governance.
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April 1 rule changes, income tax slabs 2025, UPI update 2025, Unified Pension Scheme, GST April 2025, new tax regime India, personal finance India, NPCI, MFA GST, E-Way Bill rules, pension rules India