1. Increased Income Tax Exemption Limits

The Indian government has raised the income tax exemption limit to ₹12 lakh under the new tax regime. Salaried employees can also benefit from an additional standard deduction of ₹75,000, effectively making income up to ₹12.75 lakh tax-free. This move aims to provide financial relief to middle-income groups and encourage more taxpayers to adopt the new tax regime.

2. Deactivation of Inactive UPI Accounts

To enhance digital transaction security, the National Payments Corporation of India (NPCI) has announced the deactivation of UPI IDs linked to inactive mobile numbers. Users are advised to ensure that their registered mobile numbers are up to date with their banks to avoid disruptions in digital payments.

3. Introduction of Unified Pension Scheme (UPS)

A new Unified Pension Scheme has been introduced for central government employees enrolled under the National Pension System (NPS). Employees with at least 25 years of service will now be eligible for a pension amounting to 50% of the average basic salary of the last 12 months. This aims to provide long-term financial security for government employees.

4. Mandatory PAN-Aadhaar Linking

Individuals who have not linked their Permanent Account Number (PAN) with Aadhaar by March 31, 2025, will face financial restrictions, including:

#Ineligibility to receive dividend income

#Higher Tax Deducted at Source (TDS) rates

#Possible deactivation of PAN

To avoid these inconveniences, taxpayers should complete the linkage as soon as possible.

5. Amendments in GST Regulations

Several changes have been introduced in the Goods and Services Tax (GST) framework, including:

#Mandatory Multi-Factor Authentication (MFA): Taxpayers must now use MFA to access the GST portal, enhancing security.

#E-Way Bill Validity: E-way bills can only be generated for documents less than 180 days old.

#Revised GST Rates for Hotels: Hotels with a daily room tariff exceeding ₹7,500 are now classified as ‘Specified Premises’ and will attract 18% GST on restaurant services.

6. Banking Account Requirements & KYC Updates

Public sector banks, including State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank, have updated their minimum balance requirements based on location (rural, semi-urban, urban). Additionally, Know Your Customer (KYC) verification is now mandatory for all mutual fund and demat accounts, with a focus on nominee re-verification to prevent fraud.

7. Higher Priority Sector Lending Limits for Home Loans

The home loan limits under Priority Sector Lending (PSL) have been increased:

Metro Cities: Up to ₹50 lakh

Tier-2 Cities: Up to ₹45 lakh

Smaller Cities: Up to ₹35 lakh

This revision is expected to make housing finance more accessible to a larger population.

8. Introduction of Positive Pay System for Cheques

To prevent cheque fraud, banks have introduced the Positive Pay System (PPS). For cheques above ₹50,000, issuers must provide cheque details electronically for verification before clearance. This ensures greater transparency and security in banking transactions.

9. Increased TDS Limit for Senior Citizens

The TDS threshold on interest income for senior citizens has been raised, providing them with greater financial flexibility and reducing tax liabilities on fixed deposits and savings accounts.

These tax and financial updates are set to shape the fiscal landscape in India. Whether you’re an individual taxpayer, a business owner, or an investor, staying updated on these changes is essential for smart financial planning. Accruon Global Consultants is here to help you navigate these changes and make informed financial decisions. Reach out to us for expert guidance on tax planning, compliance, and financial strategy for the year ahead.