Credit card, UPI and tax rules will change from April 1: Beginning from the financial year 2025-26, important developments are going to happen in mutual funds, UPI, credit cards, income tax, and GST. The focus lies on improving transparency, protecting the interests of consumers, and simplifying various activities involved in financial processes.
Hence, if you fall among investors, taxpayers, or spenders with digital payments, here are things to help you stay ahead.
1. Stricter Rules for Mutual Funds
The SEBI introduced stricter norms for New Fund Offerings (NFOs) in India. All Asset Management Companies (AMCs) are now mandated to invest within 30 business days of the collection of funds. For those failing to do so, a one-time extension of 30 days will be admissible but with Investment Committee approval.
Important Changes:
- Investment is not made within 60 days; no further new investments are allowed by AMCs, and penalty-free exits are given to the investors.
- Category-New Specialized Investment Funds (SIFs): sitting between mutual funds and Portfolio Management Services (PMS), this require a minimum investment of Rs. 10 lakh. SIFs can be launched only by AMCs with average AUM of Rs 10000 crore over the last three years.
- DigiLocker Integration: Now an investor can digitally store demat and mutual fund statements, leading to a reduction of unclaimed assets and easy access by the nominee.
2. Unified Pension Scheme (UPS) for Government Employees
From April 1, 2025, the Unified Pension Scheme (UPS) under the National Pension System (NPS) will be applicable to all central government employees.
How This Works:
- Employees spending at least 25 years in service would get 50 percent of the average last 12 months’ basic salary as pension.
- Therefore, despite the financial aspect being different, the system has been similar to that of providing for long-term employee welfare goals after retirement.
3. UPI Transactions & Mobile Number Updates
According to the National Payments Corporation of India (NPCI), all banks and payment service providers (PSPs) are to update their databases by the end of March 31, 2025.
What You Should Do:
If deactivated or recycled, your mobile number will have a direct impact on your UPI services. Please ensure that you have linked your bank account to an active mobile number so as to avoid possible issues with payments.
4. Credit Card Reward Changes
SBI Cards:
- SimplyCLICK SBI Card: Reward points on Swiggy drop from 10X to 5X, but remain 10X on Myntra, BookMyShow, and Apollo 24|7.
Air India SBI Platinum Card:
- Base variant: Rewards on Air India bookings decrease from 15 to 5 points per ₹100 spent.
- Signature variant: Drops from 30 to 10 points per ₹100 spent.
IDFC First Bank & Axis Bank:
- Club Vistara Credit Card: No new milestone benefits after March 31, 2025; card to be phased out.
- Axis Bank Vistara Card: Complimentary tier memberships and milestone vouchers will be discontinued from April 18, 2025.
5. Income Tax Slab Revisions – Big Relief for Taxpayers
The government has revised tax slabs, offering significant relief to middle-class earners.
New Tax Slabs (Under New Tax Regime):
- ₹0 – ₹4 lakh: No tax
- ₹4 – ₹8 lakh: 5% tax
- ₹8 – ₹12 lakh: 10% tax
- ₹12 – ₹16 lakh: 15% tax
- ₹16 – ₹20 lakh: 20% tax
- ₹20 – ₹24 lakh: 25% tax
- Above ₹24 lakh: 30% tax
Benefits for Senior Citizens:
- Interest deduction limit increased from ₹50,000 to ₹1 lakh.
- Rent deduction limit raised from ₹2.4 lakh to ₹6 lakh annually.
- Liberalised Remittance Scheme (LRS) exemption up from ₹7 lakh to ₹10 lakh.
6. GST & E-Invoicing Compliance Tightened
Businesses with an annual turnover of ₹10 crore or more must now upload e-invoices on the Invoice Registration Portal (IRP) within 30 days (previously applicable only for ₹100+ crore turnover).
Why This Matters:
- Real-time invoice tracking improves transparency.
- Easier Input Tax Credit (ITC) claims.
- Stronger tax compliance reduces fraud risks.