New Income Tax Rules Highlights: Tax relief, UPI deactivation – Here’s what all changes from today

When logging into the GST portal online, people will have to complete their multi-factor authentication as that is mandatory. This will ensure more online security for the taxpayers. Also, now e-bills will only be generated for documents that are not older than 180 days.

The toll prices for national highways across India are set to increase by approximately 3%, affecting various routes and toll plazas. For travelers using the Delhi-Meerut Expressway, Eastern Peripheral Expressway, and NH-9, the one-way toll for cars and jeeps traveling from Sarai Kale Khan to Meerut will rise by Rs 5 to Rs 170. Light commercial vehicles and buses will now pay Rs 275, whereas trucks will be charged Rs 580.

At NH-9’s Chhijarsi toll plaza, toll rates will also see an uptick. Cars will now be charged Rs 175, light commercial vehicles Rs 280, and buses and trucks Rs 590. Similarly, the toll from Ghaziabad to Meerut will increase by Rs 5, bringing the total to Rs 75.

On the Delhi-Jaipur highway, the Kherki Daula toll plaza will maintain the toll rates for cars and jeeps. However, the monthly pass for larger vehicles will rise by Rs 20 to Rs 950. Commercial cars and jeeps will now pay Rs 85 for a one-way trip, with the monthly pass increasing by Rs 20 to Rs 1,255.

Key changes in TDS and TCS rules aim to provide tax relief and streamline financial transactions. The TDS threshold on bank interest for senior citizens has doubled from Rs 50,000 to Rs 1 lakh, while for others, it has increased to Rs 50,000. Similarly, the TDS threshold for dividend income has been raised to Rs 10,000.

In addition, the tax collected at source (TCS) threshold for overseas remittances under the Liberalised Remittance Scheme has been increased from Rs 7 lakh to Rs 10 lakh. These revisions are designed to reduce tax burdens and offer greater flexibility in both domestic and international financial dealings.

The Finance Act 2025 marks a major shift in India’s digital tax landscape by scrapping the equalisation levy on digital transactions. Introduced in 2020, the levy imposed a 2% charge on e-commerce operators and 6% on online advertisements. Starting April 2025, these charges will no longer apply. This move is expected to simplify digital transactions, ease the tax burden on non-resident digital service providers, and attract greater foreign investment into India’s digital economy. By eliminating this levy, the government aims to reduce regulatory hurdles and foster a more competitive and innovation-driven online marketplace.

Under the revamped tax regime, individuals with an annual income of up to Rs 12 lakh — Rs 12.75 lakh for salaried employees, factoring in the standard deduction — will enjoy complete tax exemption. However, they must file their returns to claim a rebate of up to Rs 60,000. The revised system also brings significant tax relief for those in higher income brackets, making it a win-win for taxpayers across different earnings levels.

To enhance security and prevent bank fraud, the Positive Pay System will be implemented. Under this system, for cheque payments exceeding Rs 50,000, account holders must electronically submit cheque details to the bank for verification before the payment is processed.

Starting April 1, KYC verification will be mandatory for all mutual fund and demat accounts. As part of the process, nominee details will also undergo re-verification to ensure compliance and security.

Credit card perks are getting a major shake-up in the upcoming financial year, with SBI Cards leading the charge. Starting July 26, SBI cardholders will no longer receive complimentary insurance coverage — Rs 50 lakh for air accidents and Rs 10 lakh for rail accidents.

Additionally, SBI’s rewards program is taking a hit. Instead of earning 15% rewards per Rs 100 spent, customers will now get just 5%. As the second-largest credit card issuer with 1.96 crore active cards and an 18.7% market share (as of December), these changes will impact millions.

Frequent travelers are also in for a jolt. IDFC First Club Vistara credit cardholders will lose milestone benefits, although Maharaja points will still be available until March 2026. The bank is also scrapping Club Vistara Silver memberships and complimentary vouchers for premium economy tickets and upgrades.

Axis Bank is following suit, discontinuing Maharaja Club tier memberships, welcome vouchers and milestone ticket vouchers. If you rely on these perks, it’s time to reassess your credit card strategy.

Big banking changes are here! Major banks like SBI, PNB and Canara Bank have rolled out new minimum balance rules and where you opened your account — urban, semi-urban or rural — now determines how much you need to maintain.

Failing to meet the required balance? Be ready for penalties, which will vary based on your bank and account type. If you’re a customer of these banks, it’s time to check your balance rules to avoid unexpected deductions.

The Unified Pension Scheme (UPS), introduced by the government in August 2024, is set to take effect from April 1. This scheme will be an option for central government employees currently covered under the National Pension System (NPS). Under the UPS, government employees with at least 25 years of service will receive a pension amounting to 50% of their average basic salary from the last 12 months.

Starting April 1, the National Payments Corporation of India (NPCI) will begin unlinking UPI IDs associated with inactive mobile numbers. If you use GPay, PhonePe or any UPI-based payment app, an inactive or reassigned number could prevent you from completing transactions.

What does this mean for you?

If your mobile number has been inactive for a long time, banks may remove it from their records and suspend UPI services linked to your account. This step aims to tackle technical issues within the banking system and reduce the risk of fraud.

Inactive numbers pose a security threat, especially if they get reassigned to new users. By removing such numbers, NPCI hopes to prevent unauthorised access to UPI-linked accounts and enhance overall security. If your number is inactive, it’s best to update it with your bank to avoid disruptions in digital transactions.

Several key changes have been introduced in the Goods and Services Tax (GST) system from today onwards. The GST portal now mandates multi-factor authentication for added security. Additionally, e-way bills can only be generated for documents issued within the last 180 days, ensuring more stringent compliance.

In a significant update for the hospitality sector, hotels with room tariffs exceeding Rs 7,500 per day will now be classified as ‘Specified Premises’. As a result, restaurant services in these hotels will be subject to an 18% GST rate. However, businesses operating within these establishments will benefit from input tax credit.

Let’s start with the most important change that comes into effect from today and impacts many of us, if not all – Income Tax exemption. Starting April 1, individuals earning up to Rs 12 lakh annually will enjoy full income tax exemption under the new tax rules. With a standard deduction of Rs 75,000, salaried professionals can now earn up to Rs 12.75 lakh tax-free.

The revised tax structure applies to income earned between April 1, 2025, and March 31, 2026 and will be reflected in the Income Tax Returns for the financial year 2025-26 (Assessment Year 2026-27). Taxpayers will need to file their returns post-April 2026, with the usual deadline for individuals set at July 31.

With these changes, taxpayers can look forward to higher savings and a simplified tax regime in the coming financial year.

These changes were introduced by Finance Minister Nirmala Sitharaman in the Union Budget on February 1 and were officially approved by both the Lok Sabha and Rajya Sabha as part of the Finance Bill 2025 recently.

As the new financial year begins today (April 1), several key regulatory and financial changes take effect, impacting taxpayers, salaried individuals and consumers nationwide. These include revised income tax slabs, a unified pension scheme and new UPI deactivation rules, among others. From updated tax rates to changes in digital payments, we’ll update you with all you need to know about what’s changing from today. Stay tuned for all the latest developments.