Starting 1st April 2025, a set of important rule changes have come into effect in India that will directly impact your finances. Whether you’re a salaried professional, a retiree, a frequent highway traveler, or someone who uses UPI and credit cards, these updates affect you. Understanding these changes can help you make better financial decisions and avoid any unpleasant surprises.
Rule Change 1st April
| Change | Details | Impact |
|---|---|---|
| Income Tax Slab Update | Tax exemption limit raised to Rs 4 lakh | Individuals earning up to Rs 12.75 lakh won’t pay tax |
| UPI Deactivation for Inactive Numbers | NPCI to disable UPI IDs linked to unused mobile numbers | Potential loss of UPI access if details are not updated |
| Unified Pension Scheme (UPS) | Govt introduces new pension scheme for post-2004 employees | 50% pension of last 12-month salary for eligible employees |
| Toll Charges Increased | NHAI raises toll fees across the country | Higher travel cost on national highways |
| Credit Card Reward Structure Changed | SBI and Axis revise card rewards and benefits | Reduced cashback and points, revised partner offers |
These five financial rule changes effective from April 1, 2025, might seem small, but their impact is significant – from your monthly budget to your retirement planning. Whether it’s keeping your UPI active, understanding tax savings, or adjusting your travel or credit card use, staying updated means staying financially smart.
1. Income Tax Slab Update – More Take-Home Pay for Many
From 1st April 2025, the basic tax exemption limit under the new regime has been raised to Rs 4 lakh. This means if your total income is up to Rs 4 lakh, you won’t have to pay any tax.
Salaried Class Benefits
If you’re a salaried employee earning up to Rs 12 lakh, the new standard deduction of Rs 75,000 also applies. Combined, you could legally avoid paying tax on up to Rs 12.75 lakh. That’s huge savings!
Example:
If you earn Rs 10 lakh/year:
- No tax on the first Rs 4 lakh
- Standard deduction: Rs 75,000
- Remaining taxable income = Rs 5.25 lakh
- You’ll pay tax only on that amount, resulting in substantial savings.
see also: On Investment of ₹5 Lakhs, You Will Get Interest of Only ₹2.24 Lakhs
2. UPI Deactivation for Inactive Mobile Numbers
The National Payments Corporation of India (NPCI) has directed banks to deactivate UPI IDs linked to inactive mobile numbers to prevent fraud.
What You Need to Do
If you’ve changed your mobile number recently or stopped using an old SIM:
- Make sure your bank knows your current number.
- Log in to your UPI apps (like Google Pay, PhonePe, or Paytm) and update your mobile settings.
Failure to do so might mean losing access to your UPI-linked bank account.
Why This Matters
Imagine trying to send or receive money via UPI, only to find your ID has been deactivated. A small update now can save you major headaches later.
3. New Unified Pension Scheme (UPS) for Central Govt Employees
This is a game-changer for government employees who joined after 2004 under the National Pension Scheme (NPS).
What’s Changing?
The Unified Pension Scheme (UPS) allows qualifying central government employees to opt for a guaranteed pension – 50% of their average last 12-month basic salary – if they have completed 25 years of service.
Benefits of UPS over NPS
- NPS is market-linked and risky.
- UPS offers guaranteed income post-retirement, adding security.
4. Toll Charges Hiked Nationwide
The National Highways Authority of India (NHAI) has increased toll rates from April 1. The hike is approximately 3% across all vehicle categories.
Example:
Delhi-Meerut Expressway tolls have changed:
- Car: Rs 165 → Rs 170
- LCVs: Rs 265 → Rs 275
- Trucks: Rs 560 → Rs 580
Travel Cost Planning
If you’re a regular commuter or logistic operator, you’ll need to factor in the increased transportation cost into your budget or pricing.
5. Credit Card Rewards Get a Makeover
Several banks have revised their credit card rewards and benefits structure, particularly for SBI and Axis Bank users.
What’s Changing?
- SBI SimplyCLICK Card: Reduced reward points on partner sites.
- SBI Air India Card: Updated point redemption rules.
- Axis Vistara Card: New benefits after Vistara-Air India merger.
What to Do
- Read emails from your bank about changes.
- Log in to your credit card portal and review the updated benefits.
- Consider switching to a card that aligns with your current spending habits.
see also: What Does Increasing the TDS Limit to ₹50,000 Mean?
Rule Change 1st April FAQs
Q. Is the new income tax slab applicable under the old regime?
No, the updated slabs apply only to the new tax regime. The old regime remains unchanged.
Q. What happens if my UPI ID is deactivated?
You won’t be able to send or receive money. Update your number with your bank and UPI app immediately.
Q. How do I check if I qualify for the new UPS pension scheme?
You must be a central govt employee who joined after 2004 and completed 25 years of service. Contact your HR or visit the Pensioners’ Portal.
Q. Are toll hikes permanent?
Yes, toll charges are revised annually based on inflation and other regulatory factors.
Q. Can I opt out of credit card changes?
Not really, but you can switch cards or close your card account if the new benefits don’t suit you.
