The New Year usually brings about a new hope with a whiff of optimism in the air, more often than not. The New Fiscal Year is no different. In India, the business world bids adieu to the previous financial year, in this case, FY24 or Financial Year 2023-2024, which started in 1 April 2023, and is now going to culminate on 31 March 2024. Now, we usher into FY25, starting on 1 April 2024.
Now, as the new fiscal year kicks in, here some of the important changes that will come into force from 1 April. It is better to be prepared and informed, than to catch-up.
New Tax Regime
First and perhaps the most important of all, the New Tax Regime will kick in. This will be the default tax regime for taxpayer, unless they chose otherwise.
Here, the income tax slabs will remain unchanged. The interim budget has not introduced any alterations to these regulations. Under the renewed scheme, individuals earning an income of up to Rs 7 lakh annually will not be liable to pay taxes. Individuals with income between Rs 9 lakh and Rs 12 lakh, are expected to pay 15 per cent tax. Individuals in the bracket of Rs 12 lakh and 15 lakh, will have to shell out 20 per cent. Furthermore, incomes earners with more than Rs 15 lakh, are expected to pay 30 per cent.
FASTag KYC Rule
KYC or Know your Customer system has become essential to the larger systemic parlance in India. In addition to banks and other payment avenues, authorities have made it mandatory for users to update their KYC for their FASTag account. Users without KYC before 31 March will run into issues at the toll booth. This, as without KYC, their account could also deactivated.
NPS New Authentication Rule
The National Pension System, which is at the cornerstone of many personal fiscal activities will employ and an additional rudimentary layer of security. This would be seen in the form of a two-factor authentication oriented through Aadhaar for password-based CRA system access.
According to the PFRDA circular, an Aadhaar-based login authentication will be incorporated into the existing User ID and Password-based login process. This integration will enable 2-Factor Authentication for accessing the NPS CRA system.
This will aid the system by reducing avenue of any spoofing.
Mutual Funds
31 March will also be the last date for some investors to make the required changes for seamless investment. From 1 April, investors, who not updated their KYC will not be allowed to complete any Mutual Fund transactions. This would impact major avenues including Systematic Investment Plan (SIP), Systematic Withdrawal Plan (SWP).
SBI Annual Maintenance Rate Hike
In a move that will impact both Credit and Debit card users of the largest lender of the country, the bank will revise its reward points accrual policy for credit card users. Effective April 15, 2024, the accrual of reward points on credit card rent payments will cease for select credit cards. This change underscores the need for credit card holders to review their rewards.
For debit card users, the bank has announced a hike in annual maintenance charges for certain debit cards, with an increase of Rs 75, starting from April 1, 2024. The information was provided on their official website.
Axis Bank Credit Card Changes
Starting 20 April, further truncating the ambit of reward points, here spending on fuel, gold and insurance would not earn customers any reward points.
In addition, the number of complimentary guest visits for domestic and international lounge programs will be reduced from 8 to 4, effective immediately.
Yes Bank New Lounge Perk
Next in line is Yes Bank, but with some perquisites. Yes Bank credit users, who spend more than Rs 10,000 in a calendar year will be eligible for a additional lounge access, for domestic usage.
ICICI Lounge Access
Similar to Yes Bank, one of the largest private lenders in the country will give complimentary airport lounge access, when the expenditure through the card is at Rs. 35,000 in the previous calendar quarter.
Insurance Surrender Rule
The Insurance Regulatory and Development Authority of India (IRDAI) has unveiled the finalized regulations regarding surrender value. Starting April 1, 2024, surrender values may either remain unchanged or decrease for policies surrendered within three years.
E-Insurance Rule
The Insurance regulatory body of the country has notified a new rule, that would make it mandatory for creation of a digital version of the insurance policy or digitize the insurance policy. Starting 1 April, all polices across the board will be issued electronically.
