10 Key Changes from April 1, 2025: From LPG Prices and Highway Tolls to UPS Portal Launch

As the calendar turns to April 1, 2025, several significant changes are set to impact various aspects of Indian life. These reforms span taxation, infrastructure, financial transactions, and everyday expenses, affecting individuals and businesses alike. Here’s an in-depth look at the top 10 changes taking effect from April 1, 2025.

1. New Income Tax Slabs

To provide relief to taxpayers, the government has revised income tax slabs under the new tax regime. The basic exemption limit has been increased from ₹3 lakh to ₹4 lakh. Consequently, individuals earning up to ₹4 lakh annually will not be required to file an income tax return for the financial year 2025-26.

Read This: New Income Tax Slabs Budget 2025-26: How Much Do You Save?

2. TDS (Tax Deducted at Source) Relief

Several changes in the TDS structure will provide relief to taxpayers:

• The threshold limit for TDS deduction on dividend income has been increased from ₹5,000 to ₹10,000, benefiting equity and mutual fund investors.
• The TDS threshold for insurance commission has been increased from ₹15,000 to ₹20,000.
• For non-senior citizens, the TDS threshold for interest income has been raised from ₹40,000 to ₹50,000, reducing tax deductions at the source for small depositors.

3. Unified Pension Scheme (UPS)

The government has introduced a Unified Pension Scheme for central government employees who joined after 2004. Under this scheme:

• Employees can opt for an assured pension of 50% of their last drawn salary.
• Inflation-adjusted benefits ensure long-term financial security.
• Employees who have served for at least 10 years will receive a minimum pension of ₹10,000 per month.

4. Increased Highway Tolls

National Highway toll charges will increase by approximately 3% due to an annual revision to cover inflation and maintenance costs. For instance:

• Light vehicles will face a toll hike of ₹5 to ₹10 per trip.
• Heavy vehicles, including trucks and buses, will see an increase of ₹20 to ₹25 per trip.

5. Higher Prices for Essential Medicines

The government has approved a price increase for essential medicines, including:

• Painkillers, antibiotics, and anti-infectives.
• Anti-diabetics and cancer drugs.

While the price hike remains modest, it may slightly impact healthcare expenses.

6. Gas Prices Rise

The cost of natural gas extracted from old legacy fields (Administered Pricing Mechanism – APM) has increased by 4%, from $6.50 per million British thermal units (MMBtu) to $6.75 per MMBtu. This rise may lead to a marginal increase in the cost of piped natural gas (PNG) for households and compressed natural gas (CNG) used in vehicles.

7. Reduction in LPG Cylinder Prices (Commercial)

On the brighter side, Oil Marketing Companies (OMCs) have reduced the price of 19-kg commercial LPG cylinders by ₹41. The revised prices for major cities are:

• Delhi: ₹1,762 (down from ₹1,803)
• Kolkata: ₹1,872 (down from ₹1,913)
• Mumbai: ₹1,714.50 (down from ₹1,755.50)
• Chennai: ₹1,924.50 (down from ₹1,965.50)

This reduction will benefit small businesses, restaurants, and commercial users.

8. UPI Security Enhancements

To enhance security in digital payments, banks and UPI platforms will:

• Conduct weekly verification of mobile numbers linked to UPI IDs to prevent fraud.
• Seek explicit consent from users before assigning or updating numeric UPI IDs.

These measures aim to strengthen the security framework and prevent unauthorized transactions.

9. GST Reforms

Significant changes in GST compliance include:

• Multi-factor authentication (MFA) will be required for generating e-way bills and e-invoices.
• A new Input Service Distributor (ISD) mechanism will be implemented to streamline credit allocation within companies.

These reforms will enhance tax compliance and reduce fraudulent transactions.

Read This: What’s Changing in GST E-Invoicing from April 2025?

10. Expansion of Small Loan Limits

Banks can now extend priority sector home loans of up to ₹50 lakh in metro cities. This initiative aims to facilitate home ownership and boost the real estate sector.

Conclusion

These changes mark a transformative phase for India’s economic and financial landscape. From taxation relief to infrastructure costs and digital security, these updates will influence citizens, businesses, and investors alike. Whether you’re a taxpayer, a commuter, or a business owner, staying informed about these reforms will help you navigate the evolving financial and regulatory environment more effectively.