Significant Changes Effective from April 1 of Financial Year 2024-25
As we step into the new financial year FY 2024-25 starting April 1, several significant changes in governance rules related to taxation, National Pension Scheme (NPS), mutual funds, and other fiscal matters come into effect. Understanding these amendments is crucial for maximizing savings potential and ensuring compliance with regulations.
New Tax Regime:
Commencing April 1, 2024, the Central Government will enforce the New Tax Regime as the default structure. Unless individuals explicitly opt for the old tax system, taxes will be automatically assessed according to this new regime. Notably, income tax slabs for FY 2024-25 (AY 2025-26) remain unchanged. Individuals earning up to Rs 7 lakh annually will not be liable to pay taxes under this new scheme.
National Pension Scheme (NPS):
Starting April 1, 2024, the Pension Fund Regulatory and Development Authority (PFRDA) will introduce an additional security measure for the NPS. This enhanced system includes a two-factor Aadhaar-based authentication for password-based CRA system access. The aim is to strengthen security, reduce spoofing attempts, and ensure genuine transactions.
Ola Money Wallet:
OLA Money has announced a transition to small PPI (prepaid payment instrument) wallet services with a maximum load restriction of Rs 10,000 per month, effective April 1.
FASTag Update:
Effective April 1, it is mandatory to complete the KYC process for your car’s FASTag with the bank to avoid deactivation. Failure to update KYC may result in double toll tax charges, as per NHAI guidelines.
Credit Cards:
SBI Card has revised its reward points policy, discontinuing reward points accumulation for rental payments across select credit cards, effective April 1, 2024.
ICICI Bank now requires a minimum expenditure of Rs 35,000 in the previous quarter for complimentary airport lounge access, effective April 1.
Similarly, Yes Bank will also update its lounge access benefits, requiring cardholders to spend at least Rs 10,000 in a quarter for lounge access.
Debit Cards:
SBI has increased annual maintenance charges by Rs 75 for specific debit cards, effective April 1, 2024.
Mutual Funds:
Starting April 1, investors must re-do their KYC to continue MF transactions such as SIPs, SWPs, and redemptions. KYC based on Aadhaar card, passport, voter ID, among others, is required for valid transactions.
Insurance:
From April 1, 2024, all insurance policies will be issued electronically as per the directive of the Insurance Regulatory and Development Authority of India (IRDAI).
IRDAI has announced new rules on surrender value, which may remain the same or decrease for policies surrendered within three years, with a marginal increase expected for policies surrendered between the fourth and seventh years.
Stay informed about these changes to make informed financial decisions and ensure compliance with updated regulations.
To Access the CBDT Notification No. 37/2024 Dated 27 March 2024 CLICK HERE
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