EPFO: In India, the new fiscal year begins on April 1. This is significant for your pocketbook because, on this day, most of the new tax laws that Finance Minister Nirmala Sitharaman announced in the budget are in effect. It is a good idea to be aware of any other changes affecting your finances. Tax regulations, FASTags, savings plans (NPS & EPFO), and other financial issues have been updated for the upcoming fiscal year. Awareness of these changes can save money and prevent hassles from breaking the rules.

The following are the main adjustments that FY 2024–2025 will make:

New EPFO Rule

Finance-wise, changing jobs has never been simpler. The Employees’ Provident Fund Organization (EPFO) will automatically transfer your provident fund balance. This implies that you won’t need to manually request a transfer each time you start a new job. To guarantee a smooth transfer of your retirement funds to your new employer, EPFO will automatically credit your PF balance to your account. This greatly improves employee portability and makes managing your provident fund (PF) easier across multiple employers.

Modifications to the National Pension System

The Pension Fund Regulatory and Development Authority (PFRDA), the highest body overseeing the NPS, will introduce many changes to the current NPS login procedure. Beginning on April 1, NPS accounts will require two-factor authentication, which can be done using an OTP sent to a mobile device. PFDRA has taken action to strengthen system security.

System of Income Taxation

Beginning on April 1, the new tax system will be the default. If you choose not to use the old one, you must pay taxes under the new tax regime. Under the new tax regime, an individual is exempt from paying tax if their annual income does not exceed ₹7 lakh.

The New FasTag Rule

Users of FASTag, take note!  Do not deal with toll booths!  Complete the FASTag KYC by March 31st.  If it’s not updated after that, banks might deactivate your FASTag.  Payments won’t process without KYC, and you might have to pay twice for tolls.  At toll plazas, abide by the NHAI’s guidelines to guarantee a smooth experience.

SBI Credit Card Modifications

The State Bank of India (SBI) is changing the rules around credit cards in several major ways. For example, using your SBI credit card to pay rent won’t accrue reward points. However, these modifications will only affect a few credit cards. They will take effect for others on April 15. 

Exemption from Encashing Enhanced Leave

In 2022, the leave encashment tax exemption limit for non-government workers was raised to ₹ 25 lakh from ₹ 3 lakh.