April 1 will mark the beginning of the 2025-2026 Financial Year, introducing significant changes in rules that will impact every individual’s finances and financial planning. Some of the changes include changes in rules for taxes, rental income, LPG, and fuel prices.
The details regarding the upcoming changes are as follows:
Increase in TDS limit -
This change will benefit senior citizens and property owners as the TDS (Tax Deducted at Source) Limit has been increased to ₹1 lakh from ₹50,000 and ₹6 lakh from ₹2.4 lakh, respectively. This amended rule will offer greater tax-saving opportunities.
Increased TSC Limit on Foreign Transactions -
An increase from ₹7 lakh to ₹10 lakh has been done for the Tax Collected at Source (TCS) Limit for sending money abroad under the Liberalized Remittance Scheme (LRS). This change will directly benefit people who regularly transact money across the boundaries.
Education Loans will be TCS free -
According to the recent announcement by the government, the education loans from specified financial institutions will be TCS-free. Previous rules attracted TCS of 0.5% for loans exceeding ₹7 lakh, and other education-related transactions attracted around 5% TCS.
Increased TDS Limit for Dividends and Mutual Funds -
The TDS limit for both dividends and mutual funds has been increased to ₹10,000 per financial year.
Revised prices for LPG cylinders
It has been anticipated that the prices for LPG cylinders will be revised by the oil companies on April 1, 2025. It is to be noted that the prices are reviewed every month.
Changes in prices for ATF, CNG, and PNG
The beginning of the new financial year might also bring price changes for Air Turbine Fuel (ATF), Compressed Natural Gas (CNG), and Piped Natural Gas (PNG). This possible change from April 1 will come with changes in transportation costs and disturbance in household budgets.