Major Financial and Regulatory Changes in India from April 1, 2025: GST, Tax, Banking, Mutual Funds, and LPG Updates

As of April 1, 2025, several significant financial and regulatory changes have been implemented in India, impacting taxation, banking, mutual funds, and LPG pricing. This article provides a comprehensive overview of these
developments.

Changes in Goods and Services Tax (GST) Rules

The Goods and Services Tax(GST)framework has introduced a new security feature: Multi-Factor
Authentication (MFA) is now
mandatory for taxpayers accessing
the GST portal. Additionally, E-Way Bills (EWB) can only be generated for base documents not older than 180 days.

New Requlations for Demat Accounts and Mutual Funds

The Securities and Exchange Board of India(SEBI) has implemented revised rules for mutual fund and demat
account nominations, effective March
1, 2025. These changes aim to simplify the nomination process, aiding in legal and succession planning.

Furthermore, SEBI now mandates that funds raised through New Fund Offers (NFOs) must be deployed within a
specified timeframe, generally within
30 days. Asset Management
Companies (AMCs) failing to invest on time must offer investors an exit option.

New Income Tax Laws

The Income Tax Act has undergone
several amendments:
· Omission of Sections 206AB and 206CCA: From April 2025, these sections have been removed to reduce the compliance burden on tax deductors and collectors.
(ClearTax)

• Changes in Tax Deducted at
  Source (TDS) and Tax Collected at Source (TCS): Section 206C(1H)has been removed, eliminating the requirement for sellers to collect TCS on goods sold.
  · New Income Tax Slabs: For the
  financial year 2025-26, the new tax
  regime introduced revised slabs:
• Starting April 1, 2025, India will implement new income tax slabs as part of the revised tax regime announced in the Union Budget 2025. The key changes are as follows:
• Income up to Rs 4 lakh: No tax
• Income from Rs 4 lakh to Rs 8 lakh: 5%
• Income from Rs 8 lakh to Rs 12 lakh: 10%
• Income from Rs 12 lakh to Rs 16 lakh: 15%
• Income from Rs 16 lakh to Rs 20 lakh: 20%
• Income from Rs 20 lakh to Rs 24 lakh: 25%
• Income above Rs 24 lakh: 30%
• Additionally, individuals earning up to Rs 12 lakh annually will be exempt from taxes due to a standard deduction of Rs 75,000, effectively allowing those with salaries up to Rs 12.75 lakh to avoid tax liability

Minimum Deposit Requirements in Banks

Several banks, including State Bank of
India (SBI), Punjab National Bank
(PNB), and Bank of Baroda(BOB)
have revised their minimum balance
requirements:

• State Bank of India (SBI):

• Urban Areas: ₹3,000

• Semi-Urban Areas: ₹2,000

• Rural Areas: ₹1,000

• Punjab National Bank (PNB):

• Urban Areas: ₹3,500

• Semi-Urban Areas: ₹2,500

• Rural Areas: ₹1,500

• Bank of Baroda (BOB):

• Urban Areas: ₹4,000

• Semi-Urban Areas: ₹3,000

• Rural Areas: ₹2,000

Failure to maintain the specified
minimum balance may result in
penalties ranging from र10 to र100.

LPG Cylinder Prices from April 1
Oil marketing companies have
reduced the price of 19-kg
commercial LPG gas cylinders by र41, effective April 1, 2025.

In Delhi, the revised price is र1, 762.00; in Kolkata, र1, 868.50; in Mumbai, マ1, 713.50; and in Chennai, र1, 921.50.

These changes reflect the
government’s ongoing efforts to
streamline financial regulations and
provide economir ief to various
sectors.