Mumbai, March 29: A series of major financial and regulatory changes will come into effect across India from April 1, marking the start of the new financial year and bringing significant impact on taxpayers, employees and daily commuters.
Among the most notable developments is the rollout of the new Income Tax Act, 2025, which will replace the decades-old Income Tax Act 1961.
The new law aims to simplify the tax framework by introducing clearer language and removing complex terminology.
One key change is the replacement of terms like ‘Assessment Year’ and ‘Previous Year’ with a single concept called ‘Tax Year’, making compliance easier for taxpayers.
The changes will also extend to income tax return filing norms and PAN-related rules, with stricter regulations expected to improve transparency and plug loopholes in the system.
At the same time, labour law reforms are likely to be implemented, which could directly impact employees’ salaries and retirement benefits.
The proposed changes aim to restructure wage definitions, increasing the share of basic pay and dearness allowance.
This is expected to boost gratuity payouts and other benefits, although it may also alter the in-hand salary for many workers.
In the transport sector, the Indian Railways has revised its ticket cancellation policy. From April 1, passengers cancelling tickets within eight hours of departure may not be eligible for any refund.
This tightens the earlier rule, which allowed cancellations up to four hours before departure.
Apart from these, changes in LPG pricing and other financial regulations are also expected to come into effect, influencing household budgets.
Making digital payments in India is also set to become more secure, but slightly more time-consuming, as the RBI rolls out new rules for online transactions.
The central bank has made two-factor authentication (2FA) mandatory for all digital payments, including those made through UPI, debit and credit cards, and mobile wallets.
This means that OTP alone will no longer be sufficient to complete a transaction. Users will now have to go through at least two layers of verification, such as a PIN, password, biometric authentication or token, along with OTP.
The move comes amid rising cases of online fraud, including phishing and SIM swap scams, where OTP-based systems have proven vulnerable.
By adding an extra layer of security, the RBI aims to reduce the chances of unauthorised transactions and improve trust in digital payment systems.
For users, the change means that payments may take slightly longer to complete, especially on new devices or for high-value transactions.
However, regular transactions on trusted devices are expected to remain relatively smooth.
Another key aspect is increased accountability for banks and payment platforms. If a fraud occurs due to a failure in their systems, financial institutions may be required to compensate customers. This is expected to ensure quicker resolution of complaints and push banks to strengthen their security infrastructure. (IANS)
