New fiscal year: Effective April 1, 2024, the government will implement the New Tax Regime as the default setting.

April 1 Signals Commencement of FY2024-25 and Tax Amendments

As April 1 ushers in the new financial year, FY2024-25, it also marks the initiation of significant amendments to income tax regulations as per the Union Budget proposals. It’s crucial to grasp these changes to optimize savings and ensure compliance.

New Tax Regime

Effective April 1, 2024, the New Tax Regime becomes the default setting, unless individuals opt for the old tax structure. Under this regime, income tax slabs for FY 2024-25 (AY 2025-26) remain unchanged. Notably, individuals earning up to Rs 7 lakh annually are exempt from tax liability.

NPS: Two-factor Authentication

The PFRDA introduces an additional security layer for the National Pension System from April 1, 2024. This includes a two-factor Aadhaar-based authentication for CRA system access, enhancing security against spoofing attempts.

Ola Money Wallet

OLA Money transitions to small PPI wallets from April 1, with a maximum load restriction of Rs 10,000 per month.

FASTag Update

Failure to update KYC for FASTag by March 31 may lead to deactivation by banks, resulting in payment issues and potential double toll tax charges, in adherence to RBI rules.

Credit Card Adjustments

SBI Card discontinues reward points accrual for rental payments across specific credit cards starting April 1, 2024. ICICI Bank revises qualification requisites for complimentary airport lounge access, while Yes Bank updates lounge access benefits based on quarterly spending.

Debit Cards

SBI increases annual maintenance charges for select debit cards by Rs 75 effective April 1, 2024.

Mutual Funds

Investors failing to redo KYC by March 31 will be unable to execute MF transactions, including SIPs, SWPs, and redemptions, as per directives from RTAs CAMS and KFin Technologies.

Mandatory E-Insurance

IRDAI mandates digitization of insurance policies from April 1, 2024, across life, health, and general insurance categories.

Insurance Surrender Value

From April 1, 2024, IRDAI stipulates that surrender value for policies surrendered within three years may remain the same or decrease, with a marginal increase possible for policies surrendered between the fourth and seventh years.

These updates underscore the importance of staying informed and compliant with evolving fiscal regulations and financial services adjustments commencing from April 1, 2024.