What Are The Major Financial Changes Of 2025 That You Should Know?

Pragya Pathak

Author

Updated: 16-04-2025 at 12:59 PM

With the beginning of this year’s financial year. i.e., from April 1, 2025, till March 31st, 2026, the government of India has rolled out some changes in various components, ranging from income tax slabs, Unified Pension Scheme, and others. All of the changes have been introduced to increase the efficiency of the current system in this fiscal year.

Read the article to learn more details about all the major changes introduced for this year’s financial year.

What Are The Major Changes For Fiscal Year 2025?

The Indian government has recently introduced certain major changes in several components of the nation as the new financial year has begun. All of the major changes are laid down below in detail for one’s reference and better understanding.

1. Revised Income Tax Slabs For 2025-26

The Income Tax Slabs have undergone certain revisions following the New Income Tax Regime.

The revised structure of Income Tax Slabs is mentioned below in tabular form to avoid any confusion and doubts:

Income (in Rupees)	Rate of Tax (in %)
0 – 4,00,000	0
4,00,001 – 8,00,000	5
8,00,001 – 12,00,000	10
12,00,001 – 16,00,000	15
16,00,001 – 20,00,000	20
20,00,001 – 24,00,000	25
24,00,001 and above	30

2. Adjustments In Tax Deducted At Source (TDS)

The Tax Deducted At Source (TDS) has been increased for regular citizens (non-senior citizens) of India earning interest from Rs. 40,000 to Rs. 50,000.

For senior citizens earning interest, TDS has been raised from Rs. 50,000 to 1,00,000.

The adjustments in TDS have been made to allow people a chance to earn more through interest without paying heavy taxes.

3. Unified Pension Scheme

The Unified Pension Scheme (UPS) was announced on August 24th, 2024, and was set to be implemented by April 1st, 2025. The objective of its introduction was simply to fill the gaps between the Old and National pension schemes and make the pension system efficient and smoother.

As per the Unified Pension Scheme, employees retiring after completing a service of 25 years are entitled to a pension amount of 50% of their average basic pay drawn over a year before retirement.

4. Changes In The Rules Governing UPI

Unified Payment Interface (UPI) applications are now mandated to ask the permission of users before changing their respective UPI IDs for increasing transparency and accountability.

5. Interest In Post Office Schemes

The interest earned through the Post Office Small Schemes will not be changed for this financial year. This has an impact on other schemes as well, like the Public Provident Fund (PPF) and National Savings Certificate (NSC).

6. Mahila Samman Savings Certificate

The Mahila Samman Savings Certificate was introduced by the government for the financial independence of women. It ended on March 31st, 2025, so all those who invested in the scheme will receive an interest of 7.5% till their account’s maturity.

Conclusion

The financial changes introduced for this year’s financial year are expected to increase the efficiency in the existing models and the benefit of people. It is a must for every citizen to know about these changes so that they can stay aware and reap their benefits.

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