As the new fiscal year (FY26) kicks off on April 1, 2025, several crucial financial changes will take effect, impacting millions of taxpayers and consumers across India. From new income tax slabs to updated UPI regulations, GST security enhancements, and credit card rule modifications, here’s what you need to know.
Revised Income Tax Slabs: Higher Exemption Limit
One of the most significant changes in FY26 is the revision of income tax slabs, which increases the minimum taxable income threshold to ₹12 lakh per annum. The new tax regime is as follows:
- 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 is expected to provide relief to lower and middle-income groups while bringing more taxpayers into the system.
UPI Payment Rules: Stricter Security Measures
The National Payments Corporation of India (NPCI) has introduced new security measures for UPI transactions. Effective April 1, transactions from inactive mobile numbers will be blocked. Payment platforms like Google Pay and PhonePe will begin phasing out such numbers to prevent fraudulent activities and enhance security.
GST Portal: Mandatory Multi-Factor Authentication (MFA)
To strengthen cybersecurity, the GST portal will now require multi-factor authentication (MFA) for user logins. Additionally, businesses will only be able to generate E-Way Bills (EWB) for documents no older than 180 days.
Credit Card Changes: Bank-Specific Updates
Credit card users will also see updates in their benefits and rewards programs:
- Axis Bank Vistara Credit Card: Changes in benefits following Vistara’s merger with Air India.
- SBI SimplyCLICK & Air India SBI Platinum Credit Cards: Modifications in the reward points system as per SBI’s latest policy update.
