As we welcome the first month of 2025, several significant financial changes are set to impact taxpayers, investors, and everyday financial activities. Staying informed about these updates will help you make better financial decisions and avoid unnecessary stress. Here’s an in-depth look at the key updates coming into effect this January:
1. CBDT Extends ITR Filing Deadline
The Central Board of Direct Taxes (CBDT) has extended the deadline for filing belated and revised Income Tax Returns (ITRs) for the assessment year (AY) 2024-25.
- New Deadline: January 15, 2025
- Previous Deadline: December 31, 2024
This extension provides resident taxpayers additional time to file their returns without penalties.
2. RBI’s New Rules for Fixed Deposits
Starting January 1, 2025, the Reserve Bank of India (RBI) has implemented updated guidelines for Fixed Deposits (FDs) with Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs).
Key highlights:
- Small Deposits: Deposits up to Rs 10,000 can be withdrawn fully within three months without incurring interest charges.
- Partial Withdrawals: Larger deposits allow partial withdrawals of up to 50% of the principal sum or Rs 5 lakh (whichever is lower) within three months, exempt from interest.
- Emergency Provision: Depositors facing severe illnesses can withdraw the entire principal without interest deductions, regardless of tenure.
- Maturity Notifications: NBFCs must notify depositors at least two weeks before maturity for improved transparency.
3. UPI 123Pay Transaction Limit Increased
The National Payments Corporation of India (NPCI) has raised the per-transaction limit for UPI 123Pay transactions from Rs 5,000 to Rs 10,000, effective January 1, 2025.
- Impact: This update benefits feature phone users who rely on UPI services without internet access, offering greater convenience and flexibility.
4. New Tax Rules for FY 2024-25
Several tax amendments announced in Budget 2024 have come into effect. Here are the revised tax slabs under the New Tax Regime:
- Up to Rs 3 lakh: 0%
- Rs 3 lakh to Rs 7 lakh: 5%
- Rs 7 lakh to Rs 10 lakh: 10%
- Rs 10 lakh to Rs 12 lakh: 15%
- Rs 12 lakh to Rs 15 lakh: 20%
- Above Rs 15 lakh: 30%
Taxpayers should review these changes to optimize their tax-saving strategies for the ongoing financial year.
5. Lounge Access Policy for RuPay Cardholders
A new lounge access policy for RuPay credit cardholders was implemented in January 2025, based on their spending in the previous quarter. Complimentary lounge access is tiered as follows:
- Tier 1: Rs 10,000 to Rs 50,000 – 2 visits per quarter
- Tier 2: Rs 50,000 to Rs 1 lakh – 4 visits per quarter
- Tier 3: Rs 1 lakh to Rs 5 lakh – 8 visits per quarter
- Tier 4: Above Rs 5 lakh – Unlimited visits per quarter
This policy applies to select RuPay credit card variants, including Select and Platinum.
6. Frequent Credit Record Updates
From January 1, 2025, banks and financial institutions will update credit records every two weeks instead of monthly. This change ensures:
- Improved Accuracy: Faster updates to credit scores.
- Better Loan Approvals: More accurate reflection of creditworthiness.
7. Changes to BOBCARD Features
BOBCARD has revised several terms and features effective January 1, 2025:
- Reward Points: The cap of 500 reward points per statement cycle on UPI transactions has been removed.
- Processing Fees:
- 1% on wallet loading and utility transactions exceeding Rs 50,000 (capped at Rs 3,000 per transaction).
- 1% on fuel transactions above Rs 10,000 (except HPCL ENERGIE BOBCARD holders).
- Lounge Access: Complimentary domestic airport lounge access is now linked to minimum spending thresholds in the previous quarter:
- Eterna Card: Rs 40,000
- Varunah Premium and Premier Cards: Rs 20,000
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8. Investment Proof Submission for FY 2024-25
Employers are now requesting employees to submit evidence of tax-saving investments made in the previous financial year by January. Missing this deadline could result in:
- Higher TDS: Increased tax deductions from salaries in January, February, and March.
- Cash Flow Issues: Reduced disposable income during the last quarter.
Tips:
- Plan your investments early.
- Ensure deductions under Section 80C, such as EPF, home loan repayments, and tuition fees, do not exceed Rs 1.5 lakh under the Old Tax Regime.
