NEW DELHI, April 1, 2025 — As the financial year 2025-26 begins, a series of new government and regulatory changes come into effect today, directly impacting banking, taxation, UPI transactions, investments, and GST compliance. These updates are set to influence not just salaried individuals and senior citizens, but also investors, traders, and digital payment users. Here’s a detailed breakdown of the eight most significant rule changes you need to know starting April 1, 2025.
1. Inactive UPI IDs to Be Deactivated
The National Payments Corporation of India (NPCI) has implemented stricter guidelines for digital payments to curb fraud. From today:
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UPI IDs inactive for 12 months will be automatically disabled.
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Users are advised to update their linked mobile numbers and reactivate dormant accounts to avoid disruptions.
This move aims to enhance security and reduce unauthorized transactions in digital payments.
2. Higher TDS Exemption on Fixed Deposit Interest
A major relief for depositors, especially senior citizens:
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TDS exemption limit for seniors on FD and RD interest has been raised from ₹50,000 to ₹1,00,000.
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For other individuals, the limit goes up from ₹40,000 to ₹50,000.
This change reduces the tax burden and encourages savings through fixed-income instruments.
3. Revised Savings and FD Interest Rates
Major banks including SBI, HDFC, Indian Bank, Punjab & Sind Bank, and IDBI have revised their interest rates on savings and fixed deposits:
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New rates are applicable starting today.
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Customers are advised to review their bank’s official website for detailed updates, especially if planning new investments.
4. Mandatory PAN-Aadhaar Linking for Dividend Payouts
Investors take note:
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Dividend payouts and capital gains TDS will now require a linked PAN and Aadhaar.
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Failure to link could result in higher TDS rates and no credit in Form 26AS.
Ensure your documents are synced to continue receiving seamless stock market-related earnings.
5. Minimum Balance Requirement in Savings Accounts
Banks are reintroducing or revising minimum balance requirements for savings accounts:
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Non-compliance will result in monthly penalties.
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Each bank has different thresholds — customers must check their bank’s updated policy to avoid unnecessary charges.
6. Big GST Rule Update: Input Service Distributor (ISD) System
Effective today, the ISD mechanism under GST is officially in place:
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Aimed at fairer tax distribution among states.
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Businesses must understand and integrate this system into their accounting to maintain compliance.
This update boosts transparency and ease of credit claims under the GST regime.
7. New Income Tax Regime Becomes Default
Starting today, the new tax regime becomes the default option:
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Taxpayers must opt-in manually if they wish to stay under the old regime with deductions like Section 80C.
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Tax slabs and exemptions differ — advanced tax planning is advised.
The move is intended to simplify the filing process while still giving flexibility to choose.
8. UPI Rules Tightened for Dormant Numbers
In addition to ID deactivation, UPI-linked bank accounts with closed or outdated mobile numbers must be updated:
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Failure to do so can lead to failed transactions or blocked UPI access.
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The step is a fraud prevention measure aligned with user safety.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
