As the new financial year begins on April 1, 2025, several important changes are set to take effect, influencing your finances. These updates, including revisions to UPI payment rules, tax regulations, and investment procedures, have been highlighted by GoodReturns. Here's a closer look at how these changes could impact you:

1. Changes to UPI rules: Inactive accounts to be closed

If you use UPI payment apps like PhonePe, Google Pay, or others, you’ll need to keep your accounts active. Starting April 1, 2025, the National Payments Corporation of India (NPCI) will deactivate UPI IDs that haven't been used for a full year. This move aims to reduce fraud and phishing scams. To avoid losing access to your UPI ID, make sure to use it regularly. If you have dormant UPI IDs, take action now to reactivate them before they’re permanently closed.

2. Updates to tax regime

The new tax regime will take effect from April 1, 2025, for the FY 2025-26. This new system offers lower tax rates, but without the option to claim deductions like 80C. If you prefer the old regime, with its tax-saving deductions, you’ll need to actively opt for it when filing your taxes. If you don't specify your choice, you’ll automatically be switched to the new regime. So, if you plan to take advantage of 80C deductions, ensure you make the right choice ahead of time.

3. PAN-Aadhaar linking

From April 1, 2025, those who haven't linked their PAN and Aadhaar will no longer receive dividend payments. If you haven't linked your PAN to your Aadhaar yet, do so immediately to avoid complications. Failure to link could result in higher TDS deductions on dividends and capital gains, and delays in receiving refunds. It's also important to note that dividends and capital gains may be taxed at higher rates without proper PAN-Aadhaar linking.

4. Price revisions: LPG, gold and fuel costs could rise

Starting the new financial year, the government may revise prices for subsidised products like LPG and fuel. Although no official price hikes have been announced yet, experts predict there could be increases.

5. Stricter regulations for mutual funds and demat accounts

The Securities and Exchange Board of India (SEBI) has introduced new rules for mutual funds and demat accounts, focusing on stricter KYC (Know Your Customer) procedures. From April 1, 2025, all investors must revalidate their KYC details and update their nominee information. If you fail to comply, your accounts may be frozen, and redemptions could be blocked.