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 under the new Budget 2025. 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 top financial changes of 2025 in India, the budget 2025 highlights and much more.
Overview
The Indian government has rolled out several key financial changes for FY 2025–26 under Budget 2025. These updates aim to improve efficiency, boost transparency, and provide better benefits to citizens.
| Change | Key Details |
|---|
| Revised Income Tax Slabs | Updated tax rates under the new regime, ranging from 0% for income up to ₹4 lakh to 30% for income above ₹24 lakh. |
| TDS Adjustments | Non-senior citizen TDS limit raised from ₹40,000 to ₹50,000; senior citizen limit raised from ₹50,000 to ₹1,00,000. |
| Unified Pension Scheme | Merges Old and National Pension Schemes; 50% of the average last-year basic pay for employees with 25+ years of service. |
| UPI Rule Changes | Apps must seek user permission before changing UPI IDs. |
| Post Office Schemes Interest | No change in interest rates for PPF, NSC, and other small savings schemes. |
| Mahila Samman Savings Certificate | Scheme closed on March 31, 2025; investors will continue earning 7.5% interest till maturity. |
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 under Budget 2025. 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 to increase 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 top financial changes of 2025 in India 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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