UPI rules and tax changes effective April 1, 2025

Starting April 1, 2025, several important changes will impact your finances as the new financial year begins. If you use UPI payment apps like PhonePe or Google Pay, be aware that inactive accounts will be deactivated. The National Payments Corporation of India (NPCI) will close UPI IDs that haven’t been used for a year. To keep your UPI ID active, make sure to use it regularly. The tax system will also change. A new tax regime will offer lower rates, but it will not include deductions like 80C. If you want to keep the old regime with its deductions, you must choose it when filing taxes. Otherwise, you will automatically be switched to the new system. Additionally, starting April 1, anyone who hasn’t linked their Permanent Account Number (PAN) with their Aadhaar will not receive dividend payments. It’s essential to complete this linking to avoid higher tax deductions and delays in getting refunds. There may also be changes in prices for subsidized products like LPG and fuel, but no official announcements have been made yet. Experts suggest that price increases could happen. Lastly, the Securities and Exchange Board of India (SEBI) has new rules for mutual funds and demat accounts. Starting April 1, 2025, investors must revalidate their Know Your Customer (KYC) details and update their nominee information. If you don’t comply, your accounts could be frozen, and you may not be able to withdraw funds.