Beginning in the new fiscal year commencing April 1, 2025, several significant changes will enter into the financial landscape. These changes will impact the taxpayer, the investor, the borrower, and the layman. Below is an in-depth view of what is in sight and how it applies to the financial scenario.
1. Change In Income Tax Slab Rates
Changes to the periods of slabs or exemptions regarding income tax, imposed by the Government in 2025, are expected. Some taxes are, in all probability, to be eventually imposed on the upper-income classes in the relief of tax exemption for the middle-class taxpayers. Hence, do check for slab rates that are revised and may affect your financial planning from now on.
2. Changes In TDS Rules
Changes will be made in TDS rules for fixed deposits, income from dividends, and rent. Changes in TDS could affect your post-tax income positively. Keep an eye on TDS so that you can lessen it.
3. Interest Rates On Saving Schemes To Be Revised
The interest on the PPF, NSC, and Senior Citizens Savings Scheme may be cut or increased. However, these interest rate changes will have a direct impact on your returns. Revisit the investment options in light of the changed rates.
4. Charges On UPI And Digital Payments
With RBI releasing new circulars regarding the UPI transactions, small-value payments might remain free; however, business transactions might attract nominal charges. Consumers need to keep themselves informed about such charges while budgeting.
5. Interest Rate On Credit Card and Loans
The banks and NBFCs will alter rates of interest for personal loans, home loans, and credit cards; hence, the borrowers should be ready for either an increase or decrease based on the monetary policy issued by RBI. Check your loan agreements; refinancing may suit you if the rates rise.
6. Changes In Mutual Funds And Stock-Market Regulations
New laws will come into place regulating mutual funds and stock-market investors. With higher compliance, transparency will also increase; however, some investment strategies may be disallowed. Hence, investors will have to realign their portfolio.
7. EPFO Pension And Insurance Benefits
Pensions under EPFO could be boosted. The government also wants to raise the minimum pension to ₹7,500 from the current ₹1,000. And another huge addition for EPFO subscribers is ₹7 lakh insurance coverage under the EDLI scheme.
Conclusion
The foregoing impending financial changes would have implications of considerable bearing on various spectra. For financial security, one must know how these changes affect his income, investments, and expenses. A financial advisor can help in ensuring this is actually done.
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