As the beginning of the new financial year (1 April, 2025 – 31 March, 2026), many significant changes in income tax, financial structures and banking operations will affect citizens, organizations and market participants. Amendments include new Income Tax regime, under TDS boundaries, new pension programs and income tax slabs with UPI Payment Rules.
Here is a detailed observation of major amendments that are effective from April 1, 2025, as listed by ET.
Latest Income Tax Slab FY 2025-26
The introduction of the new financial year (April 1, 2025 – 31 March, 2026) brings adequate amendments to the Income Tax Slab under the new Income Tax regime.
The revised new Income Tax rule introduces the updated Income Tax Slab for FY2025-26. Under the new structure, earning more than Rs 24 lakhs will attract a maximum tax rate of 30% in FY2025-26.
TDS adjustment
For regular citizens (non-class category), the government has increased the TDS limit from April 1, 2025, Rs 40,000 to Rs 50,000.
Also read April 11, 2025 to 11 Income Tax Change: up to Rs 12 lakh from new income tax slab to zero income tax – to know the top marks
The government has increased the TDS limit from Rs 50,000 to Rs 1 lakh on interest income for senior citizens. This adjustment enables individuals to deposit high interest income without immediate tax deduction, especially beneficial for people with minor interest income.
Integrated pension scheme
The Integrated Pension Scheme (UPS) was announced in August 2024 to serve as an alternative to NPS, which replaced the old pension scheme (OPS) earlier. Due to frequent demands from government employees for restoration of OPS, UPS emerged as a compromise solution.
The implementation of UPS starts from April 1, 2025. Under this scheme, employees with a minimum service of 25 years are entitled to receive pension up to 50% of the average basic income calculated from their last 12 months service before retirement.
Changes in UPI rules
The UPI application should now get clear and clear consent from users before creating or changing numerical UPI ID. Users are selected automatically from this feature and will have to be selected to participate actively. To prevent any misconception, applications are banned from demanding this authority during the ongoing transaction.
Also read How to calculate income tax with the latest tax slab: Is taxable income above Rs 12 lakh? Know how this will be done under the new income tax regime
Interest rates remain unchanged for post office schemes
Interest rates for post office small savings scheme will remain unchanged for the April-June 2025 quarter. This decision affects various schemes including Public Provident Fund (PPF) and National Saving Certificate (NSC). Unchanged rates provide continuity to investors who depend on these devices for their long -term savings and retirement plans.
Women’s salmon savings certificate
The government’s small savings initiative, MSSC (Mahila Samman Sanging Sertification), which was established to promote financial empowerment and inclusion of women, ended on 31 March, 2025. Potential investors have not opened accounts before the specified end date, they will not get an opportunity to participate in this program.
For existing account holders who had invested before the deadline, the scheme will continue to provide a promise of 7.5% until their investment reaches maturity.
Also check this. Post Office Saving Schemes: Announcement of latest interest rates for April -Zoon 2025 – Czech List
