Major Financial Changes from 1st April 2025: UPI Rules, Minimum Balance & Toll Hikes

As the new financial year commences on April 1, 2025, several regulatory and financial changes are set to take effect, impacting taxpayers, pensioners, and other stakeholders. Announced during the Union Budget 2025 by Finance Minister Nirmala Sitharaman, these updates include revised tax slabs, the introduction of a unified pension scheme, and new UPI regulations. Read on to learn more about these key changes and their implications.

New Income Tax Slabs

The new income tax slabs announced during the Union Budget 2025 have come into effect. The new tax regime includes raising the threshold exemption limit from Rs 3 lakh to Rs 4 lakh, along with raising the rebate limit from Rs 7 lakh to Rs 12 lakh. For salaried employees, a standard deduction of rs 75,000 will be applicable, due to which any salary up to Rs 12.5 lakh will now be tax-free under the new tax regime. 

TDS Relief Hike

The Union Budget 2025 introduced key revisions to the threshold of TDS (Tax Deducted at Source). 

• The TDS threshold on dividend income has increased from ₹5,000 to ₹10,000, allowing equity and mutual fund investors to retain more earnings.
• The TDS threshold for insurance commission has been raised from ₹15,000 to ₹20,000, offering relief to insurance agents and brokers.
• For non-senior citizens, the TDS threshold on interest income has been increased from ₹40,000 to ₹50,000, enhancing financial flexibility.
• All changes will be effective from April 1, 2025.

Unified Pension Scheme

Launched in August 2024, the Unified Pension Scheme officially takes effect from April 1, 2025, replacing the old pension system. This transition is set to impact over 23 lakh central government employees. As per the new regulations, employees with a minimum of 25 years of service will be entitled to a pension amount equivalent to 50% of the average basic salary drawn over the last 12 months.

Updated UPI Rules

The National Payments Corporation of India (NPCI) has introduced new security measures for UPI transactions. Effective April 1, UPI IDs linked to reassigned mobile numbers will be deactivated. If your mobile number is linked to UPI but hasn't been used for an extended period, ensure update the same before April 1 to avoid deletion of your UPI account.

PAN-Aadhaar Linking

 Failure to link your PAN with Aadhaar by March 31 will result in the suspension of dividend income from April 1. Additionally, TDS deductions will increase, and no credit will be reflected in Form 26AS.

Deadline Extension for Updated Returns

The deadline for submitting updated tax returns has now been extended. Under the new regulations effective April 1, 2025, taxpayers now have 48 months, as opposed to the previous deadline of 24 months, post assessment year to file their updated returns. This revision effectively doubles the permitted filing period.

GST Security Feature

The Goods and Services Tax (GST) framework is set to undergo changes, including the mandatory implementation of Multi-Factor Authentication (MFA) for taxpayers accessing the GST portal.

New TCS Rules

Revised rules for Tax Collection At Source (TCS) have gone into effect starting April 1, 2025. The TCS threshold for foreign travel, investments, and other high-value transactions has been raised from ₹7 lakh to ₹10 lakh.

Higher National Highway Tolls

Tolls prices are set to increase by about 3% for all national highways across the country from Apr 1, 2025. 

• In Lucknow, tolls will rise by Rs 5 to Rs 10 for light vehicles and Rs 25 for heavy vehicles.
• On the Delhi-Meerut Expressway, Eastern Peripheral Expressway, and NH-9, car tolls from Sarai Kale Khan to Meerut will increase to Rs 170.
• Light commercial vehicles and buses on the same route will pay Rs 275, while trucks will pay Rs 580.
• At NH-9's Chhijarsi toll plaza, tolls will rise to Rs 175 for cars, Rs 280 for light commercial vehicles, and Rs 590 for buses and trucks.
• The Ghaziabad-Meerut toll will increase to Rs 75.
• On the Delhi-Jaipur highway’s Kherki Daula toll plaza, car tolls remain unchanged.
• Commercial vehicles on this route will pay Rs 85 one-way, with monthly passes ranging from Rs 20 to Rs 1,255. 

Revised Prices For LPG Cylinders

Following are the revised prices for a 19kg cylinder in various cities: 

• Delhi – Rs 1,762 
• Kolkata – Rs 1,872
• Mumbai – Rs 1,714.50 
• Chennai – Rs 1,924.50

Revised Minimum Account Balance

Major banks like State Bank of India, Punjab National Bank, and Canara Bank have revised their minimum balance requirements, failure to maintenance of which  may result in penalties starting .

As the new financial year begins, these regulatory changes will have a significant impact on taxpayers, pensioners, and businesses. Ensuring compliance with these changes will be essential to ensure better financial planning and a hassle-free transition into FY26.

Also Read
Income Tax Changes from 1st April 2025
TDS & TCS Changes from 1st April 2025
GST Changes from 1st April 2025