6 financial changes from April 1, 2025: From new income tax slabs to TDS and UPS changes - here's what you should know

As the new fiscal year commences (April 1, 2025 - March 31, 2026), several significant changes in income tax, financial frameworks and banking operations will impact citizens, organisations and market participants.The revisions include adjustments to income tax slabs under the new income tax regime, TDS limits, alongside new pension programmes and UPI payment regulations.Here is a detailed overview of the key modifications taking effect from April 1, 2025, as listed by ET.The commencement of the new financial year (April 1, 2025 - March 31, 2026) brings substantial revisions to the income tax slabs under the new income tax regime.The revised new income tax regime introduces updated income tax slabs for FY2025-26. Under the new structure, earnings exceeding Rs 24 lakh will attract the maximum tax rate of 30% in FY2025-26.TDS AdjustmentsFor regular citizens (non-senior category), the government has raised the TDS threshold on interest earnings from Rs 40,000 to Rs 50,000, effective April 1, 2025.Also Read | 11 Income Tax changes from April 1, 2025: From new income tax slabs to zero income tax up to Rs 12 lakh - top points to knowThe government has elevated the TDS threshold on interest income for senior citizens from Rs 50,000 to Rs 1 lakh. This adjustment enables individuals to accumulate higher interest earnings without immediate tax deductions, particularly advantageous for those with modest interest income.Unified Pension SchemeThe Unified Pension Scheme (UPS) was announced in August 2024 to serve as an alternative to the NPS, which had previously replaced the Old Pension Scheme (OPS). Due to persistent demands from government employees for the reinstatement of OPS, the UPS emerged as a compromise solution. The implementation of UPS commences from April 1, 2025. Under this scheme, employees with a minimum service tenure of 25 years are entitled to receive a pension amounting to 50% of their average basic income calculated from their final 12 months of service before retirement.Changes in UPI rulesUPI applications must now obtain explicit and clear consent from users before creating or altering numeric UPI IDs. Users are automatically opted out of this feature and must actively choose to participate. To prevent any misunderstanding, applications are prohibited from seeking this authorisation during ongoing transactions.Also Read | How to calculate income tax with latest tax slabs: Have taxable income above Rs 12 lakh? Know how it will be taxed under new income tax regimeInterest Rates for Post Office Schemes Remain UnchangedThe interest rates for the Post Office Small Savings Scheme will continue unchanged for the April-June 2025 quarter. This decision affects various schemes including the Public Provident Fund (PPF) and National Savings Certificate (NSC). The unchanged rates offer continuity to investors who depend on these instruments for their long-term savings and retirement plans.Mahila Samman Savings CertificateThe government's small savings initiative, MSSC (Mahila Samman Savings Certificate), which was established to promote women's financial empowerment and inclusion, ended on March 31, 2025. Prospective investors who have not opened accounts before the specified end date will not have the opportunity to participate in this programme.For existing account holders who invested prior to the deadline, the scheme will continue to provide the promised interest rate of 7.5% until their investments reach maturity.Also Check | Post Office savings schemes: Latest interest rates for April-June 2025 announced - check list