The new financial year 2025-26 will begin on 1 April, bringing several changes to mutual funds, credit cards, UPI transactions, income tax, and GST rules. These changes will impact investors, taxpayers, and the general public. If you are involved in mutual funds, credit cards, UPI transactions, or income tax, it is essential to understand these new rules.
Mutual Fund Rule Changes
The Securities and Exchange Board of India (SEBI) has introduced new regulations for mutual fund investments, effective from April 1, 2025.
Funds raised under new fund offers (NFOs) must be invested within 30 business days. If an asset management company (AMC) fails to invest within this period, it can seek a 30-day extension with approval from the investment committee. If the investment is not made within 60 days, the AMC will be restricted from accepting new investments, and investors can exit without any penalty.
SEBI has also introduced a new category called specialized investment funds (SIFs), which lies between mutual funds and portfolio management services (PMS).
Minimum investment required is ₹10 lakh. Only AMCs with an average AUM of ₹10,000 crore in the last three years can launch this category.
DigiLocker for Investment Statements
From April 1, investors can store and access their demat and mutual fund holding statements digitally in DigiLocker. This move will help in reducing unclaimed assets and make it easier for nominees to access investments.
New Income Tax Slabs
A revised tax structure will be implemented from April 1, increasing the tax-free income limit from ₹7 lakh to ₹12 lakh.
The new tax slabs are:
Up to ₹4 lakh – No tax
₹4 lakh to ₹8 lakh – 5%
₹8 lakh to ₹12 lakh – 10%
₹12 lakh to ₹16 lakh – 15%
₹16 lakh to ₹20 lakh – 20%
₹20 lakh to ₹24 lakh – 25%
Above ₹24 lakh – 30%
This change will provide significant relief to middle-class taxpayers.
Also Read- GST New Rules: GST Rules Will Change from April 1, Know How It Will Impact Your Pocket
GST and E-Invoicing Rules
From April 1, 2025, businesses with an annual turnover of ₹10 crore or more must upload their invoices on the invoice registration portal (IRP) within 30 days. Earlier, this rule applied only to businesses with a turnover above ₹100 crore.
Unified Pension Scheme (UPS) Implementation
The unified pension scheme (UPS) under the national pension system (NPS) will be introduced on April 1, 2025. This scheme will provide guaranteed pensions to central government employees.
Employees with a minimum 25 years of service will receive 50% of their last 12 months’ average basic salary as a pension.
Changes in UPI Transactions
The National Payments Corporation of India (NPCI) has directed banks and payment service providers (PSPs) to update their database by March 31, 2025.
Mobile numbers that have been recycled or deactivated must be removed. If your registered mobile number has been deactivated by the Department of Telecommunications (DoT), your UPI services may be affected. Ensure that your bank account is linked to an active mobile number.
TDS Exemption on Foreign Remittances
From April 1, under the liberalized remittance scheme (LRS), there will be no TDS on foreign remittances up to ₹10 lakh for students studying abroad. Previously, a 5% TDS was applicable for remittances exceeding ₹7 lakh.
Changes in Credit Card Rules
Several banks are modifying credit card reward structures from April 1.
SBI SimplyCLICK Credit Card will reduce Swiggy reward points from 10X to 5X, while Myntra, BookMyShow, and Apollo 24|7 rewards will remain at 10X. Air India SBI Platinum Credit Card will lower reward points for Air India ticket bookings from 15 to 5 per ₹100 spent. IDBI First Bank Club Vistara Credit Card will no longer offer new milestone benefits.
These rule changes will impact investors, taxpayers, businesses, and everyday users of credit cards and UPI services. It is advisable to stay updated and make necessary adjustments to your financial planning.