April 1 marks the start of the new financial year FY2024-25 and the enforcement of proposals outlined in the Union Budget regarding income tax. Each fiscal year runs from April 1 to March 31 of the following year.
In line with the new fiscal year beginning April 1, several governance rule modifications concerning NPS, EPFO, taxation, and FASTag, among other fiscal matters, will be enacted. Understanding these amendments is crucial for maximizing savings and ensuring compliance.
New Tax Regime:
Starting April 1, 2024, the New Tax Regime will be the default setting, unless individuals opt for the old tax structure. Income tax slabs for FY 2024-25 (AY 2025-26) remain unchanged.
NPS Two-Factor Authentication:
The PFRDA will implement additional security measures for the National Pension System from April 1, 2024, including a two-factor Aadhaar-based authentication system.
Ola Money Wallet:
OLA Money will transition to small PPI (prepaid payment instrument) wallet services with a maximum load restriction of Rs 10,000 per month starting April 1.
New FASTag Rule:
From April 1, updating the KYC of your car’s FASTag with the bank is mandatory to avoid deactivation and double toll tax charges.
Credit Card Changes:
SBI Card and ICICI Bank have announced revisions to their reward points accrual policies and qualification requisites for complimentary airport lounge access, respectively.
Yes Bank will update its lounge access benefits, requiring cardholders to spend at least Rs 10,000 in a quarter starting April 1.
Debit Card Fees:
SBI has increased annual maintenance charges for specific debit cards by Rs 75, effective April 1, 2024.
Mutual Fund Transactions:
From April 1, investors without updated KYC will not be allowed to conduct MF transactions.
Mandatory E-insurance:
Starting April 1, 2024, all insurance policies will be issued electronically as per IRDAI’s directive.
Insurance Surrender Value:
From April 1, 2024, surrender value for insurance policies may remain the same or decrease if surrendered within three years, with a potential marginal increase between the fourth and seventh years.
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