Key Regulatory Changes for the Financial Year 2025-26

• 29 Mar 2025
• 614 Views

As the new financial year 2025-26 approaches, several regulatory updates will take effect. Here’s a quick overview of the significant changes:

• Mutual Fund NFO Deployment
  SEBI mandates that funds raised through New Fund Offers (NFOs) must be deployed within 30 business days. If this isn’t met, AMCs can request a one-time extension of up to 30 more business days.
  
  

• Specialised Investment Funds (SIFs)
  SEBI introduces SIFs, bridging the gap between Mutual Funds and Portfolio Management Services (PMS). These require a minimum investment of ₹10 lakh and are available only to AMCs with an AUM of ₹10,000 crore or more.
  
  

• DigiLocker Integration
  SEBI integrates DigiLocker to allow digital storage of Demat and mutual fund holding statements, improving access and reducing unclaimed assets.
  
  

• Unified Pension Scheme (UPS) for Central Govt Employees
  Starting April 1, 2025, the UPS guarantees a pension based on service tenure, with employees having at least 25 years of service eligible for 50% of their last 12 months’ average basic salary.
  
  

• UPI Transaction and Mobile Number Updates
  Banks and UPI apps must update records by March 31 to remove recycled mobile numbers. Users must ensure their bank account is linked to an active number to avoid service disruptions.
  
  

• Credit Card Benefit Changes (SBI and IDFC)
  SBI Card will reduce reward points on select transactions, and IDFC First Bank will discontinue milestone benefits for its Club Vistara Credit Card by March 31, 2025.
  
  

• Revised Credit Card Benefits (Axis Bank)
  From April 18, 2025, Axis Bank will revise Vistara Credit Card benefits due to Vistara’s merger with Air India, removing several complimentary benefits and altering reward earning categories.
  
  

• Income Tax Slab Changes
  The income tax exemption slab under the new regime increases from ₹7 lakh to ₹12 lakh. New tax slabs also introduce incremental tax rates from 5% to 30% based on income levels.
  
  

• Senior Citizens' Tax Benefits
  Senior citizens will benefit from an increased interest deduction limit, raised from ₹50,000 to ₹1 lakh, and the tax deduction limit on rent is increased from ₹2.40 lakh to ₹6 lakh annually.
  
  

• GST and E-Invoicing Requirements
  From April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of ₹10 crore or more must upload e-invoices to the Invoice Registration Portal (IRP) within 30 days of issuance.
  
  

These changes will impact both individuals and businesses, making it essential to stay informed and prepared for the new financial year.