Updates on Income Tax, Credit Cards, Mutual Funds & More

April 2025 Financial Changes: As the new financial year begins on April 1, 2025, several important rules are changing. These updates will affect mutual funds, credit cards, UPI payments, taxes, and GST. The goal is to make things clearer, safer, and easier for everyone. Here’s a simple breakdown of what’s new.

The Securities and Exchange Board of India (SEBI) has set new deadlines for mutual fund companies. When they launch a new fund (called an NFO), they must invest the money within 30 working days. If they can’t, they can ask for one extra month, but only with approval. If they still don’t invest the money after 60 days, they must stop taking new investments, let investors withdraw without penalties, and inform everyone.

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SEBI is also introducing a new type of fund called Specialized Investment Funds (SIFs). These are for people who want more flexible investment options but require at least ₹10 lakh to start. Only big mutual fund companies with ₹10,000 crore or more in assets can offer these.

Another helpful change is the use of DigiLocker. Now, investors can store their mutual fund and Demat account statements online. This makes it easier to keep track of investments and helps nominees access them if needed.

New Pension Rules for Government Employees

From April 1, central government workers will switch to the Unified Pension Scheme (UPS) under the National Pension System (NPS). If an employee has worked for at least 25 years, they will get 50% of their last year’s average basic salary as a pension.

UPI and Mobile Number Updates

The National Payments Corporation of India (NPCI) has told banks and payment apps to update their records. According to CNBC TV18, if a mobile number has been recycled or given to someone else, banks must remove it from UPI services by March 31.

If your mobile number is no longer active, your UPI payments might stop working. So, make sure your bank has your current mobile number linked before April 1 to avoid problems.

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Credit Card Rewards Cut

Many banks are reducing rewards on credit cards.

• SBI Card users will get fewer points on Swiggy orders (down from 10X to 5X). But rewards on Myntra, BookMyShow, and Apollo 24|7 stay the same.
• Air India SBI Card holders will earn fewer points on flight bookings, just 5 points per ₹100 spent (down from 15).
• IDFC First Bank is ending benefits for its Club Vistara Credit Card after March 31, 2025.
• Axis Bank is also changing its Vistara Credit Card perks after April 18, 2025, due to Vistara’s merger with Air India. Some free vouchers and memberships will be removed.

Tax Slabs Changed

The government has made tax rules simpler and better for middle-class earners.

• No tax on income up to ₹4 lakh.
• 5% tax on ₹4 lakh to ₹8 lakh.
• 10% tax on ₹8 lakh to ₹12 lakh.
• 15% tax on ₹12 lakh to ₹16 lakh.
• 20% tax on ₹16 lakh to ₹20 lakh.
• 25% tax on ₹20 lakh to ₹24 lakh.
• 30% tax on income above ₹24 lakh.

Senior citizens can now claim a higher tax deduction on interest income, up to ₹1 lakh instead of ₹50,000.

Rent deductions have also increased from ₹2.4 lakh to ₹6 lakh per year.

For those sending money abroad, the Tax Collected at Source (TCS) limit under the Liberalized Remittance Scheme (LRS) has gone up from ₹7 lakh to ₹10 lakh.

Stricter GST Rules for Businesses

From April 1, more businesses must upload e-invoices within 30 days. Earlier, only big companies (with ₹100 crore turnover) had to follow this rule. Now, even smaller businesses (with ₹10 crore turnover) must comply. This helps the government track invoices better and reduces tax errors.

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