Major Financial and Tax Changes to Impact Taxpayers, Investors, and UPI Users Starting April 1, 2025

Several important financial and tax changes will come into effect from April 1, 2025, impacting taxpayers, UPI users, credit card holders, investors, and those engaging with financial institutions. These changes stem from the Union Budget 2025 and regulatory updates from bodies such as SEBI, RBI, and NPCI.

1. New Income Tax Slabs and Exemptions

The most notable tax reform includes new income tax slabs and exemptions. The new tax regime will ensure that no tax is levied on income up to Rs. 12 lakh annually, with salaried individuals benefiting from a standard deduction of Rs. 75,000, making income up to Rs. 12.75 lakh tax-free under the revised system. These changes are aimed at reducing the tax burden for middle-income earners.

2. Deactivation of Inactive UPI Accounts

The National Payments Corporation of India (NPCI) has announced that UPI accounts linked to mobile numbers that have been inactive for extended periods will be deactivated starting April 1, 2025. This initiative is aimed at improving security and reducing the risk of dormant account misuse. Users need to ensure their UPI-linked mobile numbers are active and updated to avoid account deactivation.

3. Revised Credit Card Rewards and Benefits

Several banks, including SBI and Axis Bank, will revise their credit card reward structures. For example, SBI credit cardholders, such as those using the SimplyCLICK or Air India SBI Platinum cards, will see changes in their rewards programs. Additionally, Axis Bank is adjusting the benefits of its Vistara credit card due to the merger of Air India and Vistara, which will affect travel-related perks.

4. Unified Pension Scheme for Government Employees

A new Unified Pension Scheme (UPS) will come into effect for central government employees with at least 25 years of service. The UPS will provide a pension equal to 50% of the average basic salary from the last 12 months of service, off