New Income Tax Rules: Starting April 1, 2025, a slew of regulatory and financial changes will be coming into effect, affecting citizens across the country. From changes in the tax slabs to the Unified Payments Interface (UPI) to the launch of the Unified Pension Scheme, here’s a complete list of the changes that you can expect.
New tax slabs and rates
After Union Finance Minister Nirmala Sitharaman announced the new tax slabs and rates in the annual budget speech in the parliament, the revised tax structure will kick into effect, starting Tuesday (Apr 1). Individuals earning up to Rs 12 lakh annually will be exempt from paying taxes under the new regime.
Additionally, salaried individuals will be eligible for a standard deduction of Rs 75,000 which effectively means an indisual with salary upton Rs 12,75,000 is exempt from paying any taxes.
| Income tax slabs | New income tax rates |
| 0-Rs 4 lakh | No tax |
| Rs 4 lakh-Rs 8 lakh | 5 per cent |
| Rs 8 lakh-Rs 12 lakh | 10 per cent |
| Rs 12 lakh-Rs 16 lakh | 15 per cent |
| Rs 16 lakh-Rs 20 lakh | 20 per cent |
| Rs 20 lakh-Rs 24 lakh | 25 per cent |
| Abover Rs 24 lakh | 30 per cent |
Unified Pension Scheme
The Unified Pension Scheme (UPS) was launched by the central government in August 2024 but will be implemented from April 1, 2025. It is expected to benefit around 23 lakh central government employees. Those with at least 25 years if service will receive a pension equivalent to 50 per cent of their last 12 months’ average basic salary to ensure financial security post-retirement.
UPI
To enhance the security and efficiency of the Unified Payments Interface (UPI), the National Payments Corporation of India (NPCI) has announced a series of directives. These guidelines, coming into effect from April 1, requires banks and third-party UPI providers (PhonePe, GooglePay) to implement specific measures to phase out inactive numbers.
Inactive mobile numbers linked to UPI pose a security risk. When users change or deactivate their numbers, their UPI accounts often remain active, making them vulnerable to misuse.
“The Banks, PSP App shall use the Mobile Number Revocation List/Digital Intelligence Platform (MNRL/DIP) and update their database accordingly at regular intervals, at least on weekly basis,” NPCI said.
If your mobile number is inactive or unused for a long time, update it with your bank before April 1, 2025, to avoid losing access to UPI payments.
GST
With the new financial year, the GST regime is also getting its annual makeover. Multi-factor authentication (MFA) will be made mandatory for taxpayers for better security on the GST portal. Additionally, E-Way Bills (EWBs) can only be generated for base documents not older than 180 days.
If you file GSTR-7 for tax deductions at source (TDS), you can no longer skip months or file out of order. Additionally, promoters and directors will now need to visit a GST Suvidha Kendra for biometric authentication.
