Rules Changed Update: The commencement of the financial year 2025-26 on April 1, 2025, has heralded several government revisions that have an impact on income tax, banking, credit cards, fixed deposits, etc. These will affect your financial and tax planning, savings, and other liabilities.
Here are the 10 most significant financial rule changes you should consider:
1. STRICTER MINIMUM BALANCE RULES IN SAVINGS ACCOUNTS
Banking biggies will now tighten the minimum balance requirements based on the area, i.e., urban, semi-urban, and rural. New policies are being drafted by banks such as SBI, PNB, and Canara Bank. If a saver fails to maintain the minimum balance, he or she will be penalized.
Key Highlight: Consult your bank to avoid unnecessary deduction of charges on your account.
2. CHECK PAYMENT RULES TO CHECK CHECK-FRAUD
The Positive Pay System may be enforced by banks on checks exceeding ₹50,000, whereby customers will have to pre-verify their check details. This initiative would help curb check fraud and enhance security with respect to transactions.
Key Highlight: Always confirm check details with your bank before handing out high-value payments.
3. REVISED TAX REGULATIONS FOR MONEY SENDING OUTSIDE INDIA
Under the RBI’s scheme of Liberalized Remittances, sending money for foreign studies or medical expenses up to ₹10 lakh will now be freed from TDS. Earlier, amounts over ₹7 lakh attracted a TDS of 5%.
Key Highlight: Plan international remittances in a tax-efficient manner to avoid unnecessary tax deduction.
4. INCREASED TAX EXEMPTION LIMIT FOR SALARIED EMPLOYEES
The new tax regime, therefore, considers the tax-free limit of income to be ₹7 lakh as opposed to the tax-free limit of ₹2.5 lakh. Also, the 30% slab now kicks in for income over ₹14 lakh instead of ₹15 lakh.
Key Highlight: Assess if you are better off under the old or new tax regime before filing your returns.
5. HIGHER TDS EXEMPTION ON FIXED DEPOSIT WITH SENIOR CITIZENS
Senior citizens will have double the exemption limit on TDS applicable on FD/RD interest income—₹1 lakh (as compared to ₹50,000), meaning no TDS will be levied if the interest earnings do not go above ₹1 lakh.
Key Highlight: Senior investors earn more interest now without TDS deductions.
6. CUTS IN CREDIT CARD REWARDS AND BENEFITS
Banks like SBI and IDFC are scaling back on reward points and milestone benefits, including fewer vouchers. Credit card users might see fewer rewards attached to their spending.
Key Highlight: Revisit your card’s benefits and switch if required.
7. INPUTS TAX CREDITS- MANDATORY FOR BUSINESS
As per GST, from April 1, 2025, any business that fails to apply to register under Input Tax Credit (ITC) will be penalized.
Key Highlight: GST filings must be timely to avoid penalties.
8. PAN-Aadhaar Linking Deadline: Higher TDS if Not Linked
If your PAN and Aadhaar remain unlinked, you may face:
- Delays in tax refunds
- Higher TDS rates
Key Highlight: Get linking done immediately for a hassle-free life.
10. New Tax Regime is Your Default Option
The TDS-free limit on dividends from mutual funds and shares has increased from ₹5,000 to ₹10,000, reducing tax burdens for small investors.
