Union Minister Kiren Rijiju graces Indian community interaction program in Riyadh

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.

A 7.7 magnitude earthquake, and an aftershock of 6.8, hit central Myanmar at 12.50pm (local time) Friday. The epicentre was 16km northwest of the city of Sagaing, and at a depth of 10km, the United States Geological Survey said. 20 deaths have been reported - in Myanmar so far - by local media.

Deaths have also been reported from a mosque in Mandalay city, which collapsed while people were inside, praying and a university building in which a fire broke out. And a 1,000-bed hospital in Myanmar capital Naypyidaw has become a "mass casualty area", news agency AFP said.

The Myanmar junta has declared an 'emergency' and has appealed for international aid.

Tremors were felt as far away as northern Thailand, where some metro and rail services were suspended in Bangkok. Thai Prime Minister Paetongtarn Shinawatra is holding an "urgent meeting" to review the crisis and she too has declared a state of 'emergency' in the capital city.

China's Yunnan province also reported strong tremors; the China Earthquake Networks Center said the magnitude was 7.9. And mild tremors were also reported from Kolkata in Bengal and parts of Manipur, where tremors of 4.4 magnitude were recorded as well as Dhaka and Chattogram in Bangladesh.

Prime Minister Narendra Modi has said India is ready to offer any assistance needed. "Praying for the safety and wellbeing of everyone," he posted on X. "... have asked our authorities to be on standby."

Terrifying videos on X showed buildings shaking in Bangkok and other cities, with people running onto the streets in panic. "I heard it... I was sleeping in the house and then I ran as far as I could in my pyjamas out of the building," Duangjai, a resident of popular tourist city Chiang Mai, told AFP.

One particularly horrifying video showed water from an infinity pool falling over the edge.

And another showed an under-construction skyscraper in Bangkok's Chatuchak neighbourhood collapsing. According to reports, 43 workers have been trapped amid the debris.

"When I arrived to inspect the site, I heard people calling for help, saying help me," Worapat Sukthai, deputy police chief of Bang Sue district, told AFP. "We estimate that hundreds of people are injured but we are still determining the number of casualties."

In Myanmar, an old bridge over the Irrawaddy River and some residential buildings having collapsed, with images from Mandalay (around 24km from Sagaing) suggesting more people may be trapped.

Other videos showed extensive damage to the airport in Mandalay and to a monastery near the city of Taunggyi, in Myanmar's Shan State that is on the border to Thailand.

Earthquakes are relatively common in Myanmar, where six strong quakes of 7.0 magnitude or more struck between 1930 and 1956 near the Sagaing Fault, which runs north to south through the country.

A powerful 6.8-magnitude earthquake, in the ancient capital Bagan in central Myanmar, killed three people in 2016, also toppling spires and crumbling temple walls at the tourist destination.

The impoverished nation has a strained medical system, especially in its rural states.

Israel has announced the launch of a new ground onslaught in Gaza City, with rescuers saying military aggression has killed at least 30 people across the Palestinian territory since dawn.

In Gaza City, the Israeli military said ground troops had begun pushing into the Shejaiya neighborhood to expand the so-called "security zone" there, claiming that civilians had been allowed to evacuate the area. 

Initial reports, however, said a Palestinian woman and her daughter were just killed in an Israeli artillery shelling on displaced people in Shejaiya.

Gaza's civil defense agency said Israeli military aggression had killed at least 30 people in the Palestinian territory since dawn, adding that the toll was "not final".

A single Israeli strike on Khan Yunis killed at least 25 people, a medical source at the southern city's Nasser Hospital said. 

"The situation is very dangerous, and there is death coming at us from every direction," Elena Halas told AFP reportedly via text message, adding that she and her family were trapped in her sister's house in Shejaiya.

Israel has pushed since the collapse of a short-lived truce in the war to seize territory in Gaza. Simultaneously, it has escalated attacks on Lebanon and Syria, with a strike in the south Lebanese city of Sidon killing a Hamas commander along with his son on Friday. 

Minister of military affairs Israel Katz had said on Wednesday that Israel would bolster its military presence inside the Gaza Strip to "seize large areas that will be incorporated into Israeli security zones", without specifying how much territory.

Prime minister Benjamin Netanyahu said the military was dividing Gaza and "seizing territory" to force Hamas to free the remaining captives seized in the October 2023 operation inside southern settlements. 

Netanyahu has said his regime is working closely with the US to implement President Donald Trump's plan to displace Gazans.

Latest air raids have targeted Gaza City, as well as Beit Lahia, Rafah, and Khan Yunis, killing dozens of people and injuring several others.

On Thursday, hundreds of thousands of fleeing Gazans sought shelter in one of the biggest mass displacements of the war, as Israeli forces advanced into the ruins of the city of Rafah. 

A day after declaring their intention to capture large swathes of the crowded territory, Israeli forces pushed into the city on Gaza's southern edge which had served as a last refuge for people fleeing other areas for much of the war.

The Ministry of Health in Gaza said on Thursday that 112 Palestinians were killed by Israeli airstrikes, with at least 70 of those deaths taking place in Gaza City, in the north of the strip. 

Gaza's civil defense agency said women and children were among the dead, while six people were still unaccounted for in the strike on Dar al-Arqam School in the al-Tuffah neighborhood, northeast of Gaza City, including a pregnant woman who was expecting twins. 

Beit Hanoun Mayor Mohammad Nazek Al-Kafarna was one of the victims of the Israeli strike that hit the school on Thursday.

The Health Ministry said on Thursday that 1,163 people have been killed in the Palestinian territory since Israel resumed intense bombing on March 18, bringing the overall death toll since the war began to 50,523.

The usurping entity accepted longstanding negotiation terms by the Hamas resistance group under a Gaza ceasefire, which began on January 19.

On March 18, however, Israel unilaterally broke the truce and resumed its relentless bombing of Gaza.