The financial year 2025-26 has begun. Many major changes in financial and money rules have taken place, starting today, i.e. April 1, 2025. These changes will affect taxpayers, digital payment users, and pensioners. The new income tax slab, changes in UPI rules, and the introduction of the Unified Pension Scheme (UPS) will affect the personal finances of millions, including central government employees. Apart from this, the prices of toll tax, gas and medicines have also been revised.

The following are the key financial changes that can affect your pocket.

1. Changes in the income tax slab

Under the new tax slab, the basic tax exemption limit has been increased from Rs 3 lakh to Rs 4 lakh. That is, those whose total annual income is less than Rs 4 lakh will no longer need to file income tax returns. In the Union Budget, the Modi government announced a major overhauling of tax slabs under the new tax regime, making an income up to Rs 12.75 lakh tax-free after adjusting the 87A rebate of Rs 60,000.

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

2. Relief in TDS

The limit of TDS exemption on dividend income has been increased from Rs 5,000 to Rs 10,000, which will benefit equity and mutual fund investors. The limit of TDS for insurance agents and brokers has been increased from Rs 15,000 to Rs 20,000.

The limit of TDS exemption on bank interest has been increased from Rs 40,000 to Rs 50,000, which will provide relief to fixed deposit (FD) and savings account holders.

3. Changes in pension benefit rules

Employees who joined government jobs after 2004 will get the option to shift to the Unified Pension Scheme (UPS). This UPS option will be available under the NPS. Under this scheme, 50% of the last salary will be given as assured pension, dearness allowance (DA) and minimum Rs 10,000 monthly pension.

4. Hike in toll tax

Toll tax on national highways has gone up on several routes. Toll rates will increase on Delhi-Meerut Expressway, Eastern Peripheral Expressway and NH-9. Meerut toll from Sarai Kale Khan will increase from Rs 165 to Rs 170. Meerut toll from Ghaziabad will increase from Rs 70 to Rs 75. Toll for heavy vehicles on Delhi-Jaipur Highway (Kherki Daula toll plaza) will increase by Rs 5.

5. Increase in medicine prices

There will be a slight increase in the prices of medicines for serious diseases like painkillers, antibiotics, anti-infectives, anti-diabetics and cancer.

Also read: Big money rule changes from April 1: Tax relief, UPI deactivation, PAN-Aadhaar impact and more

6. Change in gas prices

CNG and power generation will become expensive as natural gas prices have been increased by 4%. The price of 19 kg commercial LPG cylinder has been reduced by Rs 41.

New LPG rates: Delhi: Rs 1,762 (earlier Rs 1,803); Kolkata: Rs 1,872 (earlier Rs 1,913); Mumbai: Rs 1,714.50 (earlier Rs 1,755.50); Chennai: Rs 1,924.50 (earlier Rs 1,965.50).

7. UPI security update

Banks and UPI apps will have to update users’ mobile numbers every week. To avoid wrong payments due to wrong numbers, UPI apps will now take explicit consent from users before transactions.

8. Changes in GST rules

Multi-factor authentication will be implemented for e-way bill and e-invoice generation. New input service distributor (ISD) mechanism will be implemented.

9. Small loans will be cheaper

Now banks will give home loans up to Rs 50 lakh in metro cities under Priority Sector Lending (PSL). This is likely to reduce the interest rates of home loans.

How will it affect your pocket?

These changes will have a direct impact on your tax liability, investment, pension, daily expenses and digital payment system. If you are an investor or a government employee, then update your financial plan keeping these changes in mind.