As we step into the new financial year, several key changes in personal finance are now in effect. Here’s a straightforward guide to help you navigate these updates:
New Income Tax Slabs: Relief for Middle-Class Taxpayers
The government has increased the income tax exemption limit under the new tax regime from ₹7 lakh to ₹12 lakh. This adjustment aims to provide financial relief to middle-class taxpayers, enhancing disposable income for a broader section of the population.
Changes in Credit Card Rules
UPI ID Deactivation: UPI IDs linked to inactive or non-operational bank accounts will now be deactivated for security reasons.
SBI Credit Card Reward Adjustments: SBI has revised its credit card reward system. For instance, the reward points for purchases made using the Simply Click SBI Card on Swiggy have been reduced from 10x to 5x, impacting the earning potential for cardholders.
Changes in Fixed Deposit (FD) Rules
New RBI guidelines now allow FD holders in Non-Banking Financial Companies (NBFCs) to withdraw small deposits (less than ₹10,000) before maturity. Additionally, full withdrawals are permitted in cases of critical illness, providing more flexibility to investors.
Introduction of Specialized Investment Funds (SIFs)
The Securities and Exchange Board of India (SEBI) has introduced Specialized Investment Funds (SIFs), positioned between Mutual Funds and Portfolio Management Services (PMS). These funds offer flexible investment strategies but require a minimum investment threshold of ₹10 lakh, catering to high-net-worth investors seeking targeted investment opportunities.
Conclusion
April 2025 brings significant changes in personal finance, impacting taxpayers, investors, and consumers alike. Staying informed about these updates can help you make better financial decisions and plan effectively for the future.