New Income Tax Rules Highlights: Key Changes from April 1, 2025

News Network
April 1, 2025

tax.jpg

As the new financial year begins, several significant financial and tax-related changes take effect from April 1, 2025. Many of these updates were announced by Finance Minister Nirmala Sitharaman in the Union Budget 2025 and have now been officially approved as part of the Finance Bill 2025.

Some of the key changes include income tax exemption on annual earnings up to Rs 12 lakh, deactivation of UPI for long-unused mobile numbers, and suspension of dividend payouts for individuals who haven’t linked their PAN with Aadhaar. Below is a comprehensive look at all the important updates.

1. Income Tax Exemption & New Tax Slabs
Under the revamped tax regime:
✅ Individuals earning up to Rs 12 lakh per year will be completely exempt from income tax.
✅ For salaried employees, a standard deduction of Rs 75,000 raises the effective tax-free limit to Rs 12.75 lakh.
✅ To claim a rebate of up to Rs 60,000, taxpayers must file their returns on time.
✅ The new tax structure applies to income earned between April 1, 2025 – March 31, 2026, and will be reflected in ITR filings for FY 2025-26 (AY 2026-27).

2. Major Changes in TDS & TCS Rules
To provide tax relief and streamline transactions, several TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) amendments have been introduced:
🔹 TDS on bank interest for senior citizens has doubled from Rs 50,000 to Rs 1 lakh.
🔹 TDS on dividend income has increased to Rs 10,000.
🔹 TCS on overseas remittances under the Liberalised Remittance Scheme (LRS) has been raised from Rs 7 lakh to Rs 10 lakh.

3. UPI Deactivation for Inactive Mobile Numbers
The National Payments Corporation of India (NPCI) will start unlinking UPI IDs associated with inactive mobile numbers. If your number has been inactive for a long period:
🔸 Your bank may remove it from their records.
🔸 You could face disruptions in Google Pay, PhonePe, or any UPI-based transactions.
🔸 This change enhances security by preventing unauthorized access to old UPI-linked accounts.

4. New GST Rules
Several Goods and Services Tax (GST) updates take effect:
🔹 Multi-factor authentication (MFA) is now mandatory for logging into the GST portal, improving online security.
🔹 E-way bills can only be generated for documents issued within the last 180 days, ensuring better compliance.
🔹 Hotel room tariffs above Rs 7,500 per day are now classified as "Specified Premises," attracting an 18% GST on restaurant services.

5. Toll Tax Hike Across National Highways
From April 1, 2025, toll charges across various highways will increase:
🚗 Delhi-Meerut Expressway, NH-9: Toll for cars will rise by Rs 5 to Rs 170.
🚛 Trucks and buses will now pay Rs 580 on major highways.
🚗 Delhi-Jaipur Highway: The Kherki Daula toll plaza will maintain current rates for cars, but the monthly pass for larger vehicles will rise by Rs 20 to Rs 950.

6. End of Equalisation Levy on Digital Transactions
The Finance Act 2025 removes the Equalisation Levy, which previously imposed a 2% tax on e-commerce and 6% on online advertisements. This change aims to:
✅ Reduce tax burden on digital service providers.
✅ Attract foreign investments in India’s digital economy.

7. Positive Pay System for Cheque Payments
To prevent bank fraud, the Positive Pay System requires account holders to:
✅ Electronically submit cheque details for payments above Rs 50,000.
✅ Ensure the details match before the cheque is processed.

8. KYC Mandatory for Mutual Fund & Demat Accounts
🔹 KYC (Know Your Customer) verification is now compulsory for mutual fund and demat accounts.
🔹 Nominee details will also undergo re-verification to enhance security.

9. Major Credit Card Perk Reductions
Credit card users will see major perk reductions, particularly with SBI, IDFC First, and Axis Bank:
❌ SBI Cards will remove complimentary insurance coverage for accidents (Rs 50 lakh for air, Rs 10 lakh for rail).
❌ Reward points on SBI Cards will be slashed from 15% to just 5%.
❌ IDFC First Club Vistara cardholders will lose milestone benefits and Club Vistara Silver membership perks.
❌ Axis Bank is discontinuing Maharaja Club tier memberships and premium vouchers.

10. Minimum Balance Rules for Bank Accounts
📌 Major banks like SBI, PNB, and Canara Bank have updated their minimum balance requirements based on account location:
🏙 Urban branches will require higher minimum balances.
🏡 Rural and semi-urban accounts may have lower minimum balance thresholds.
🚨 Failing to maintain the required balance will result in penalty charges, varying by bank.

11. Unified Pension Scheme (UPS) for Government Employees
The Unified Pension Scheme (UPS), introduced in August 2024, takes effect:
✅ Central government employees under NPS can opt for UPS.
✅ Those with at least 25 years of service will receive 50% of their average basic salary as a monthly pension.

Final Thoughts

These changes, introduced as part of the Union Budget 2025, mark a significant shift in India's tax, banking, and digital transaction landscape. With higher tax exemptions, updated TDS & TCS rules, stricter banking security, and GST amendments, the new financial year aims to simplify compliance while improving financial security and economic efficiency.

Stay informed and ensure all necessary updates to your financial accounts to avoid disruptions.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 13,2025

shelling.jpg

Srinagar: Following an unprecedented episode of intense cross-border shelling by the Pakistan Army that directly targeted the towns of Rajouri and Poonch in Jammu and Kashmir, the Indian government is moving to construct community bunkers in these towns and other vulnerable areas along the Line of Control (LoC).

While the government has, over the past decade, supported the construction of both individual and community bunkers along the LoC and the International Border (IB), towns like Rajouri and Poonch had been excluded from such initiatives. These towns were considered safe, as previous shelling incidents were largely restricted to forward villages closer to the border.

Officials now say the latest shelling marks a dangerous shift in the pattern of cross-border hostilities.

“The nature and intensity of the attack marked a significant departure from past ceasefire violations. For the first time in years, heavily populated towns like Rajouri and Poonch were directly hit,” a senior official said.

Caught unprepared, residents in both towns had little access to protective infrastructure as long-range mortar shells struck deep inside civilian areas.

“People weren’t expecting this—these towns had never been targeted before. Without bunkers, many had nowhere to go for safety,” the official added.

In response, the government now plans to build community bunkers at strategic locations throughout Rajouri and Poonch. These reinforced shelters will offer immediate protection to civilians during any future shelling incidents.

“In areas where individual bunkers aren't viable, community shelters become essential. These will provide residents with quick access to safety in emergencies,” the official noted.

The attacks have left local communities rattled.

“This is the first time shells landed so close to our homes in Poonch town,” said Abdul Rashid, a resident. “We never thought this would happen here.”

The sudden escalation has disrupted the fragile calm along the LoC, raising concerns over a potential return to more violent confrontations in the region.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 11,2025

spy.jpg

Amid the ongoing border tension with Pakistan, the Punjab Police in India arrested two individuals on espionage charges. They allegedly leaked sensitive information and photographs of Army cantonment areas and Air Bases in Amritsar, said the police on Sunday.

The two persons were identified as Palak Sher Masih and Suraj Masih. They were arrested in a significant counter-espionage operation by the Amritsar Rural Police.

Director General of Police Gaurav Yadav wrote on X, "Malerkotla Police apprehends two individuals for their alleged involvement in espionage activities linked to a Pakistani official posted at the High Commission, New Delhi.

"Acting on credible intelligence, one suspect was arrested for leaking sensitive information regarding Indian Army movements to a Pakistan-based handler. Based on disclosures made during interrogation, a second conduit was also identified and taken into custody.

"Preliminary investigation reveals that the accused had been receiving payments through online transactions in exchange for classified information. They were in frequent contact with the handler and were involved in channeling funds to other local operatives as per his instructions. Two mobile phones have been recovered, and an FIR has been registered."

The police said further investigation will be undertaken as per established protocol, with a focus on tracing the financial trail and identifying additional operatives and linkages within the network.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 10,2025

indaarmy.jpg

New Delhi, May 10: In a detailed joint briefing today, India’s defence and foreign ministries dismantled Pakistan’s claims of major strikes on Indian infrastructure and exposed Islamabad’s alleged attempts to escalate conflict along the border. Here's a clear breakdown of 12 crucial points made by Indian military officials:

1. Pakistan’s Claims Are False
The Indian government called Pakistan’s statements about destroying airbases, power grids, and cyber systems “completely false” and “state-sponsored propaganda.”

2. No Damage to Indian Airbases
Indian officials categorically denied Pakistani claims of hitting Sirsa, Suratgarh, and the S-400 radar base in Udhampur.

3. Pakistan Used Multiple Attack Platforms
Pakistan employed UCAVs (unmanned combat aerial vehicles), loitering munitions, long-range missiles, and fighter aircraft to target military and civilian sites.

4. Civilian Infrastructure Targeted
Pakistan struck schools and a Medicare centre near Indian Air Force bases in Srinagar, Awantipora, and Udhampur.

5. Over 26 Locations Attacked
India reported air intrusions and harassment attacks across 26+ locations from Srinagar to Naliya, along the Line of Control (LoC) and international border.

6. Limited Damage at IAF Bases
Minor damage occurred at four IAF stations: Udhampur, Patan, Adampur, and Bhuj — but all operations remain unaffected.

7. Heavy Cross-Border Shelling
Sectors like Kupwara, Baramulla, Poonch, Rajouri, and Akhnoor saw intense artillery, mortar, and small arms fire — all met with strong Indian retaliation.

8. Pakistan Moving Troops to Forward Areas – Signals Possible Escalation
The Indian Army observed significant Pakistani troop mobilisation toward forward posts along the LoC. This movement, described as “indicative of offensive intent,” suggests that Pakistan may be preparing for a wider military escalation. The Indian armed forces are on high operational alert, closely monitoring the situation and ready to respond to any provocation.

9. India’s Response: Swift, Measured, Targeted
In retaliation, India struck only military assets — radar stations, command centres, and storage sites — using precision air-launched weapons.

10. No Damage to Critical Indian Defences
Pakistan’s claims of destroying India’s S-400 systems, BrahMos base, and Chandigarh ammo depot were debunked with timestamped visual evidence.

11. Pakistan Trying to Spread Communal Discord
Indian officials accused Pakistan of fabricating stories to stoke communal unrest in India — calling such efforts "doomed to fail."

12. India Committed to Responsible Conduct
India reiterated its commitment to non-escalation — “provided Pakistan reciprocates.” Officials stressed that India’s military operations have been calibrated and proportionate.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.