From EPFO to taxation rules: Six key financial changes to be effective from April 1

The new financial year, FY 2024–25, is approaching soon, which will bring into force several changes in rules related to personal finance. Several key changes, to be effective from April 1, are related to personal finance, investment schemes, tax regime, FASTag and other money-related matters.

One should be fully aware of these money-related changes, as they could directly impact your personal finances and monthly budget.

Let’s take a look at the key financial changes that will come into effect from April 1.

Changes in NPS rule

From April 1, there will be a change in the National Pension System (NPS). The Pension Fund Regulatory and Development Authority (PFRDA), the apex body managing the NPS, will implement changes in the existing login process of the NPS. This new rule will be effective from April 1.

Now, there will be a two-factor authentication required for logging into NPS accounts. Subscribers will need to authenticate their login through Aadhaar verification and an OTP received on their mobile phones. This measure has been introduced to enhance the security of the system.

EPFO's new rule

From April 1, the Employees’ Provident Fund Organisation (EPFO) is expected to implement significant changes. Under the new rule, when a subscriber changes job, his or her old Provident Fund (PF) balance will be automatically transferred to the new organisation. This means the EPFO account holder doesn't need to request the transfer of PF amounts when joining a new employer. Previously, despite having a Universal Account Number (UAN), individuals had to request the transfer of PF amounts, leading to unnecessary hassle.

Income Tax New Tax Regime

Starting April 1, 2024, the new tax regime will become the default tax regime. This means that if you don’t opt for the old tax regime, you will automatically pay tax under the new tax regime. It's worth noting that changes were made to the income tax rules from April 1, 2023. Under the new tax regime, individuals with income up to ₹7 lakh per annum are not required to pay any tax.

New rule of FASTag

A significant change related to FASTag is scheduled to take effect from April 1. If you haven't updated the KYC of your car's FASTag with the bank, you may encounter issues starting April 1. It's important to complete the KYC process for your FASTag because after March 31, banks will deactivate FASTags without updated KYC information.

Even if you have a balance in your FASTag, payments won't be processed, and you'll be required to pay double toll tax at toll plazas. The NHAI has urged FASTags customers to ensure compliance with the RBI rules by completing the KYC process.

SBI credit card changes

If you hold an SBI credit card, this news is important for you. SBI is set to implement several significant changes in credit card rules starting April 1, 2024. After these rules come into effect, if you make rent payments using your SBI credit card, you will not earn any reward points. However, this will only be applicable to certain credit cards from April 1, while for others, it will come into effect from April 15.

Ola money wallet rule change

OLA Money has announced that it will transition entirely to smaller PPI (prepaid payment instrument) wallet services, with a maximum wallet load limit of ₹10,000 per month starting from April 1, 2024. The company has informed its customers about this change through SMS.