Many new rules are going to be implemented from April 1. This will affect the common man. The budget may also deteriorate. So know these changes in advance. Let’s know what will change next month?
New Rules From April 1: As soon as the month of March ends, many new rules will come into force. Which will affect the common man. Some changes will be beneficial, while some can increase the burden on the pocket. Therefore, it is important to know about these rules in advance. So that future problems can be avoided. This will also help in financial planning.
The new financial year is starting from April 1. Many rules related to income tax are going to change. Changes can be seen in the rules related to credit card. New rules related to UPI will also come into force at the beginning of April. Some essential medicines may also become expensive. There is also a possibility of revision in the rates of LPG gas cylinder and fuel. Not only this, new rules related to mutual funds can also be implemented.
New rules related to dividend and mutual funds
The government has increased the TCS limit on dividend income from Rs 5000 to Rs 10,000 per financial year.
Rules related to mutual funds and demat accounts will be strict. Now users will have to verify KYC and nominee details. Failure to do so may freeze the account. In this regard, market regulator SEBI has also issued instructions to non-banking financial companies.
There will be new rules related to tax
The TCS limit for RBI’s Liberalized Remittance Scheme on foreign transactions is going to increase. It has been increased from Rs 7 lakh to Rs 10 lakh.
The government has decided to remove TCS deduction for education loan from specific financial institution.
The limit of TDS deduction on rent shortfall for landlords has been increased from Rs 2.4 lakh to Rs 6 lakh per financial year.
From April 1, it will be mandatory to apply separately to avail the old tax system like 80C exemption. The new system will be the default.
A new tax slab will be applicable. Under which there will be no tax on income of Rs 12 lakh. Salaried employees will get the benefit of tax deduction of Rs 75 thousand.
New rules related to FD
Senior citizens are going to get relief. TDS deduction has been doubled. Earlier it was Rs 50,000, but from April 1, TDS deduction will be Rs 1 lakh. This means that now senior citizens will not be charged TDS on interest income up to Rs 1 lakh from fixed deposit or recurring deposit.
Input Tax Distribution System will be implemented
It will be mandatory for those doing business to register under the Input Tax Credit System. The rule will come into effect from April 1, 2025. Failure to do so may result in a penalty.
New rules related to banking
Rules related to minimum bank balance will be strict. Banks can increase the limit of minimum balance in savings account. Customers will have to keep minimum amount in the account based on urban, semi-urban and rural areas. Many banks including SBI, PNB have changed the rules.
SBI and IDFC First Bank have changed the rules related to credit card. It has been announced to stop reward points, free vouchers and milestone benefits on some credit cards.
Rules related to check payment can also change. Positive pay system will be necessary for amounts more than Rs 50,000. This step has been taken to reduce cases of fraud.
New rules related to UPI
NPCI has changed the rules related to UPI. UPI transactions are going to be stopped for inactive mobile numbers. This will reduce cases of fraud.
Medicines will become expensive
The government has allowed a 1.74% increase in the prices of medicines under LLEM. This will make medicines used for many common diseases including fever, diabetes, allergies expensive. This list includes medicines like vitamins, minerals, paracetamol etc.
Change in LPG cylinder prices
Oil companies fix new prices of LPG cylinders on the first date of the month. There may be fluctuations in the price of cylinders on April 1.
PAN-Aadhaar linking rules
If you have not linked your PAN and Aadhar card yet, then get this work done as soon as possible. Otherwise the TDS rate may increase. Tax refund may also be delayed.
