New Financial Year Brings Major Tax, Banking, and UPI Rule Changes from April 1

As the financial year 2025-26 (FY26) begins on April 1, several key rule changes will impact taxpayers, salaried individuals, pensioners, and digital payment users. From revised income tax slabs to stricter UPI security measures, here’s what to expect:

Income Tax Reforms

• Individuals earning up to ₹12 lakh annually will now be exempt from income tax.
• A ₹75,000 standard deduction for salaried individuals raises the effective tax-free salary to ₹12.75 lakh.

Unified Pension Scheme (UPS) Replaces Old Pension System

• Around 23 lakh central government employees will shift to the new pension scheme.
• Employees with 25+ years of service will get a pension equal to 50% of their last 12 months’ average basic salary.

Credit Card & UPI Rule Changes

• SBI, Axis Bank to modify reward structures for SimplyCLICK, Air India Platinum, and Vistara Credit Cards.
• NPCI mandates deactivation of UPI linked to inactive mobile numbers; users must update bank details before April 1.
• Third-party UPI apps like PhonePe and Google Pay must remove dormant numbers to enhance security.

Banking Updates

• SBI, PNB, and Canara Bank to revise minimum balance requirements.
• Non-compliance will attract penalties.

GST System Overhaul

• Mandatory Multi-Factor Authentication (MFA): Enhanced security for taxpayers logging into the GST portal.
• E-Way Bill Restrictions: Bills can only be generated for base documents less than 180 days old.

With these sweeping changes, taxpayers, salaried employees, and businesses must stay updated to avoid financial and operational disruptions.