As 2025 unfolds, several financial regulations are changing, impacting taxpayers, investors, and general consumers. Understanding these changes is crucial to avoid penalties and financial disruptions. Here’s a comprehensive breakdown of the key updates you need to be aware of:
1. Income Tax Changes 2025
- Increased Tax Exemption: Individuals earning up to ₹12 lakh annually are now exempt from income tax under the new tax regime. Additionally, salaried individuals receive a standard deduction of ₹75,000, effectively making incomes up to ₹12.75 lakh tax-free.
- TDS Relief: The TDS threshold for dividend income has increased to ₹10,000, reducing tax deducted at source for investors. Similarly, the TDS limit on interest income has been raised for both general and senior citizens.
2. UPI Usage Updates
- The National Payments Corporation of India (NPCI) is deactivating UPI IDs linked to mobile numbers that have been inactive for a prolonged period.
- To avoid disruptions, users should ensure their mobile numbers linked to UPI accounts are updated.
3. Unified Pension Scheme (UPS)
- Eligibility: Central government employees with 25+ years of service can now opt for the UPS as an alternative to the National Pension System (NPS).
- Pension Calculation: The pension amount will be 50% of the average of the last 12 months’ basic salary.
4. PAN-Aadhaar Linking Deadline
- Failure to link PAN with Aadhaar may result in financial restrictions, such as difficulty receiving dividend income and higher TDS deductions.
5. GST Updates 2025
- Multi-Factor Authentication (MFA): Logging into the GST portal now requires MFA for enhanced security.
- E-way Bill Validity: Businesses can only generate e-way bills for documents less than 180 days old.
- GST on Hotel Restaurant Services: Hotels with room tariffs above ₹7,500 per day will attract an 18% GST rate, with input tax credit benefits.
6. Mandatory KYC Updates
- The Securities and Exchange Board of India (SEBI) now requires full KYC compliance for mutual fund investors and Demat account holders.
- Ensuring nominee details are updated is now more important than ever.
7. Credit Card Reward Program Changes
- Various banks are modifying reward structures, affecting credit cards like SBI SimplyCLICK, Air India SBI Platinum, and Axis Bank Vistara.
8. Minimum Balance Requirements for Bank Accounts
- Banks such as SBI and Punjab National Bank have revised their minimum balance requirements, which vary by location.
Key Takeaways:
- Stay informed about these financial changes to remain compliant and avoid penalties.
- Update your UPI-linked mobile number to prevent service disruptions.
- Ensure PAN is linked with Aadhaar to avoid financial restrictions.
- Complete KYC updates for mutual funds and Demat accounts.
- Be aware of credit card reward modifications and bank balance requirements.
By taking proactive steps now, you can navigate these financial changes smoothly and optimize your financial planning in 2025.
Staying updated on these financial shifts can help you make informed decisions and safeguard your finances. Take action now to stay compliant and maximize your financial benefits in 2025.
