From 1 April 2025, many new rules related to banking and financial transactions are going to be implemented in India. These rules include UPI (Unified Payments Interface), TDS (tax deducted at source), and other financial transactions. These changes are important not only for bank account holders, but also for traders and investors. The purpose of these rules is to make financial transactions simple and safe, as well as to make tax compliance easier.
Under these new rules, the limit of TDS has been increased, which will benefit investors. The UPI rules have also been changed, which will make the transaction process even more convenient. In addition, there is also a change in fee on cash withdrawal from ATM, which is important for bank account holders. Let us know in detail about these new rules.
New Rules for Bank Account Holders
Details of new rules
The table below gives details of the new rules to be implemented from 1 April 2025:
| Rule | Description |
| TDS limit change | The TDS limit for ordinary citizens has been increased from Rs 40,000 to Rs 50,000. This limit for senior citizens is Rs 1 lakh. |
| Changes in UPI rules | The transaction limit of UPI 123Pay has been increased from Rs 5,000 to Rs 10,000. |
| Change in ATM Fee | The fee has been increased on cash withdrawal from ATM. |
| TDS on lottery and gaming | The TDS on lottery and gaming win will be deducted only when the amount of one win will be more than Rs 10,000. |
| TDS on FD | No TDS will be deducted on interest income up to Rs 50,000 annually on FD. |
| UPI Transaction ID | Special characters will not be used in UPI Transaction ID. |
Changes in TDS Rules
Under the new TDS rules, no TDS will be deducted on Fixed Deposit (FD) annually up to Rs 50,000 for ordinary citizens. This rule will be applicable from 1 April 2025. This will benefit investors who depend on the interest of FD for their income.
The TDS limit has also been increased for Senior Citizens. Now TDS on FD, RD and other deposit schemes will be deducted only when the total interest income in the bank in a financial year will be more than Rs 1 lakh. If the interest income of senior citizens is less than Rs 1 lakh, then they will not have any TDS.
Changes in UPI rules
The transaction limit of UPI 123Pay has been increased to Rs 10,000. This change will be beneficial for those who use feature phones and have limited access to the Internet. This will provide more convenience to people in their daily transactions.
In addition, special characters will not be used in UPI transaction ID. This change has been made to increase safety and will make the transaction even more secure.
Change in ATM Fee
The fee has been increased on cash withdrawal from ATM. This change is important for bank account holders, as it may cost additional expenditure on their transactions. However, this change can help banks improve their services.
TDS on lottery and gaming
TDS rules have been made easier on gaming winings like lottery, crossword puzzle and horse raping. Now the total limit of Rs 10,000 has been abolished annually. Under the new rule, now TDS will be deducted only when the amount of one win will be more than Rs 10,000. Earlier, if the total win over a year was more than Rs 10,000, then the TDS was cut.
Impact of new rules
These new rules will not only have an impact on bank account holders, but also on traders and investors. Increasing TDS limit will benefit investors, as they will have to pay less tax. Increasing UPI limit will provide more convenience to people in their daily transactions.
Although an increase in ATM fee may cause some trouble to people, this change can help banks to improve their services.
conclusion
The purpose of these new rules is to make financial transactions simple and safe. Increasing TDS limit will benefit investors, increasing UPI limit will provide more convenience to people, and changes in ATM fee will help banks to improve their services.
The implementation of these rules can improve the Indian economy and people will get more facilities in financial transactions.
Important point:
- TDS limit changes: Rs 50,000 for ordinary citizens and Rs 1 lakh for senior citizens.
- UPI 123Pay limit: increased from Rs 5,000 to Rs 10,000.
- Change in ATM fee: Fee has been increased on cash withdrawal.
- TDS on lottery and gaming: TDS will be deducted at a win over Rs 10,000 only.
Disclaimer: This article is for general information and should not be taken as any specific financial advice. For detailed information about the new rules, you should contact the concerned authorities.
