The Indian government introduced major financial reforms during the parliamentary budget session Most of the new taxes and rules introduced by Nirmala Sitaraman come into effect today, April 1, including a new tax regime and new EPFO ( Employees’ Provident Fund Organisation) rules that might impact your retirement planning. Having a comprehensive understanding of these financial rules and regulations will enable you to save money, invest wisely, and plan for your retirement accordingly.
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New EPFO Rule
The government has introduced an automatic fund transfer for the EPFO to ensure employees can manage their PFs efficiently across different employers. The automatic system will automatically credit the PF balance to the new employer’s account, removing the hassle of manually requesting it.
New Tax Regime
The new tax regime will now be a default option unless you specifically opt for the old tax regime. The tax bracket for new tax regimes is the same as that of the previous financial year (2024-2025). This means that if your income is upto INR 7,00,000 annually, your net tax payable is zero.
NPS: Two-Factor Authentication
NPS (National Pension Scheme) will now have additional security that will include two-factor Aadhaar-based authentication for accessing the CRA (Central Recordkeeping Agencies) system via password. This system mitigates spoofing attempts and provides an additional layer of security to authenticate fingerprints.
Exemption Of Enhanced Leave Encashment
The government has also increased the leave encashment tax exemption limit for non-government employees from INR 3 lakhs to INR 25 Lakhs.
New Rule of FasTag
If you are a Fastag user, you must complete your Fastag KYC. Otherwise, banks will deactivate your Fastags, and you may pay additional toll charges.
