Outlook Business Desk
Starting April 1, the revised income tax slabs, announced by Finance Minister Nirmala Sitharaman in the Union Budget 2025-26, will come into effect. Under the new regime, individuals earning up to Rs 12 lakh per year will not be required to pay income tax.
Up to Rs 4 lakh: Nil
Rs 4 lakh to Rs 8 lakh: 5%
Rs 8 lakh to Rs 12 lakh: 10%
Rs 12 lakh to Rs 16 lakh: 15%
Rs 16 lakh to Rs 20 lakh: 20%
Rs 20 lakh to Rs 24 lakh: 25%
Salaried employees will benefit from a standard deduction of Rs 75,000. As a result, those with an annual salary of up to Rs 12.75 lakh will have no tax liability.
The Unified Pension Scheme (UPS), introduced by the central government in August 2024, will come into effect from April 1, 2025. Expected to benefit about 23 lakh central government employees, the scheme ensures that those with at least 25 years of service receive a pension equal to 50% of their average basic salary over the last 12 months.
To streamline the Unified Payments Interface (UPI), the National Payments Corporation of India (NPCI) has introduced new guidelines effective from April 1, 2025. Banks and third-party UPI providers, such as PhonePe and Google Pay, must implement measures to deactivate inactive mobile numbers linked to UPI accounts.
NPCI has directed banks and payment service providers (PSPs) to regularly update their records using the Mobile Number Revocation List (MNRL) or Digital Intelligence Platform (DIP) at least once a week.
To avoid disruptions in UPI transactions, users should ensure their registered mobile number is active and updated with their bank before April 1, 2025. The NPCI says that inactive numbers pose a security risk, as old or deactivated numbers linked to active UPI accounts can be misused.
Several banks like SBI, ICICI, and Yes Bank are changing benefits and rules on their credit cards starting April 1. State Bank of India (SBI) has revised its credit card rewards accumulation policy. Notably, reward points can no longer be accrued on rental payments made using SBI credit cards.
ICICI Bank has updated its criteria for complimentary airport lounge access. Its cardholders are now required to spend a minimum of Rs 35,000 in the preceding quarter to qualify for this benefit. Yes Bank has adjusted its spending threshold for complimentary airport lounge access to at least Rs 10,000.
Effective April 1, 2025, businesses with an annual aggregate turnover (AATO) of Rs 10 crore and above must upload e-invoices to the Invoice Registration Portal (IRP) within 30 days of issuance. For instance, an invoice dated April 1, 2025, must be reported by April 30, 2025; submissions beyond this period will be rejected by the IRP.