As the next financial year is about to start from April 1, there are many big changes that will impact you from the very beginning. Credit card, UPI and tax rules will change from April 1. New rules related to Mutual Funds, UPI, Credit Cards, Income Tax and GST will come into force then. Here we are going to take you through the major rules and changes that would impact you directly and indirectly.
Mutual funds
According to the new SEBI rule, fund houses must invest funds raised through New Fund Offers (NFO) within 30 business days. If an asset management company(AMC) is unable to invest within this period, it can get an extension of 30 days once again with the approval of the Investment Committee. According to various reports, If there is no investment within 60 days, the AMC will have to stop taking new investments and allow investors to exit without any penalty.
Specialized Investment Funds
SEBI has introduced a new category called Specialized Investment Funds (SIFs). This category lies between mutual funds and portfolio management services (PMS). Investors must invest a minimum of Rs 10 lakh in SIFs. Only asset management companies (AMCs) with an average AUM of over ₹10,000 crore in the past three years are eligible to launch these funds.
Unified Pension Scheme (UPS)
The government will implement the Unified Pension Scheme (UPS) under the National Pension System (NPS) from April 1, 2025. This scheme will be for central government employees and will guarantee pension based on service. Employees with at least 25 years of service will get 50% of their average basic salary of the last 12 months as pension.
UPI Transactions And Mobile Number Update
The National Payments Corporation of India (NPCI) has instructed banks and payment service providers (PSPs) to update their databases by March 31, 2025, by removing recycled or closed mobile numbers. If the Department of Telecommunications (DoT) deactivates or revokes your mobile number as per its rules, your bank and UPI app may remove it from their records, potentially disrupting UPI services. To avoid any inconvenience, ensure that you link your bank account to an active mobile number.
Changes Related To Credit Card
Changes related to Credit cards depends upon each bank.
SBI Card: SBI has rolled out many offers related to its credit cards like, SimplyCLICK SBI cardholders shall get 5X reward points instead of 10X on Swiggy. This credit card holders will also be getting many rewards on Myntra, BookMyShow and Apollo 24|7.
Air India SBI Platinum Credit Card offers reward points on Air India ticket booking. The bank will now reduce the holders’ reward points by 33 percent.
IDFC First Bank: After March 31, 2025, it will stop offering new milestone benefits for the Club Vistara Credit Card and gradually discontinue the card.
New Income Tax Structure
The government has increased the limit of tax free income from ₹ 7 lakh to ₹ 12 lakh under the new tax structure. This will greatly benefit middle income groups. Under this, individuals earning up to ₹12 lakh a year will not need to pay any tax. However, a standard deduction of ₹75,000 will apply for the salaried individuals. This will be effectively making ₹12.75 lakh salary tax-free under the new tax regime. Additionally, the government has changed the tax slabs under the new tax regime.
Relief for senior citizens:
The government has increased the limit of tax deduction on interest from ₹50,000 to ₹1 lakh for senior citizens. The annual threshold for deduction of tax at source (TDS) on rent to ₹6 lakh from the current limit of ₹2.4 lakh for senior citizens.
(This article is for informational purposes only and not an investment advice. Prior to making an investment or taking a loan, conduct thorough research and consult with your financial advisor.)
