UPI Changes, etc: The yearly transition from April 1 initiates different modifications which shape the financial aspects of taxpayers alongside salaried employees and shopping consumers nationwide in India. During FY26 starting April 2025 the government will enforce new income tax brackets while implementing updated UPI standards as well as other modifications.
The spectrum of major changes implementing from April 1 contains the following items:
New Income Tax Rules
The proposal to tax exemption up to Rs 12 lakhs a year was revealed by Finance Minister Nirmala Sitharaman during her Budget 2025 presentation. The modified tax plan applies a standard deduction of Rs 75,000 to salaried employees starting April 1 which creates tax exemption for their Rs 12.75 lakh annual income.
New Pension Scheme Rule Change
The Unified Pension Scheme (UPS) will become the new pension system after its introduction by the government in August 2024. The new pension scheme change will affect 23 lakh central government personnel. Staff who work for twenty-five years and more can receive a pension benefit amounting to half of their basic salary during the last 12 months of service.
Credit Card Rule Change
Multiple banking institutions are currently adjusting the methods by which they reward their credit card users. Modifications for reward points systems exist in both the SimplyCLICK SBI Card and the Air India SBI Platinum Credit Card. The benefits structure of Vistara Credit Cards needs modification as the carrier completes its Air India acquisition.
UPI Rule Change
NPCI established new UPI transaction security protocols which involve terminating UPI access from unused numbers. Users who want to maintain UPI access must notify their bank about their mobile UPI details before April 1 because bank accounts with inactive numbers will be deactivated after this date.
Facebook, Google Pay and PhonePe must remove UPI-linked numbers that remain inactive because it represents a safety threat.
Minimum Balance in Banks
Starting from April 1, State Bank of India (SBI) alongside Punjab National Bank (PNB) and Canara Bank will adjust their account balance requirements. A lack of minimum balance in bank accounts results in charges being applied to customers.
GST Rule Change
The Goods and Services Tax (GST) system will require taxpayees to perform MFA security checks before GST portal access begins. E-Way Bill Restrictions enable the generation of documents based on base documents between 180 days old and current.
Hotel room tariff and GST
Hotels with daily rates exceeding Rs 7,500 in any financial year will be categorized as ‘Specified Premises.’ The provision of restaurant services in hotels at 18% GST rate includes benefits from input tax credit.
Bank account minimum balance rules
The big banking institutions including SBI and Punjab National Bank together with Canara Bank updated their rules regarding bank account minimum balance. Starting from April 1 you will encounter penalties on your bank account when the balance drops below the specified limit.
You will fail to receive dividend payments because of non-linkage between PAN and Aadhaar.
Starting from April 1, failure to link your PAN with your Aadhaar by March 31 will prevent you from obtaining dividend payments. The TDS rate increase together with Form 26AS non-credit functionality will take effect from April 1.
Mutual fund and demat KYC mandatory
Starting in April 2025 mutual fund and demat accounts will require valid KYC information for complete registration. During this process all existing nominee information will be thoroughly verified again.
Positive pay system for check clearance
Positive pay system implementation will occur to stop bank-related fraud schemes. The account holder must provide electronic details about checks exceeding Rs 50,000 to their bank for verification before payment occurs.
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