From EPFO 3.0 to UPI 2.0, all the changes coming into effect from April 1
Follow UsWith EPFO 3.0, users can withdraw PF instantly via UPI, enjoy automatic account transfers when switching jobs, and more.
UPI updates bring mandatory two-factor authentication and higher transaction limit increases for tax, education, and healthcare.
The Income Tax Act 2025 will come into effect and will introduce a single tax year.
There will be a major shift in the ways the Indian citizens will handle money, taxes, and employee benefits starting April 1. The government has planned to make these financial procedures easier and faster. This will include the ways in which employees can access their provident fund after the launch of EPFO 3.0 and the ways in which income tax is calculated. The focus is on making systems easier to use while improving safety for users. Salaried workers, business owners, and retirees will all notice these changes in their daily finances. As the new rules take effect this week, here is a straightforward look at what is changing and how it may affect you.
SurveyEPFO 3.0 set to launch
The Employees’ Provident Fund Organisation (EPFO) is all set to introduce UPI-linked withdrawals, and for the first time, subscribers will be able to withdraw partial PF amounts directly via UPI for instant credit to their bank accounts.
A new mandatory retention rule will also take effect. According to the rule, the members will have to keep at least 25 per cent of their balance for retirement, while up to 75 per cent will be accessible for essential needs like illness or education.
Along with that, the One Employee, One EPF Account system will also come into effect, and with that launching, the PF balances will automatically transfer between employers when you change jobs without any manual intervention or paperwork.
The full and final settlement time will be drastically reduced as the new rule sets a three-day window for processing advance claims related to marriage, education, or medical emergencies.
Also read: EPFO 3.0: You can withdraw PF money via UPI starting April 1, know how
UPI and digital payment rules to change
Security for digital payments will be upgraded to mandatory two-factor authentication. An OTP alone will no longer be enough; every transaction will require a second factor like biometrics or a secure PIN.
Daily limits will be placed on non-financial messages to prevent bank server overloads, and users will be capped at 50 balance checks or account list requests per day.
While the base transaction limit will remain Rs 1 lakh, verified categories will see a massive increase. Payments for taxes, education, and healthcare will go up to Rs 10 lakh per transaction.
CCTV ban
The Indian government is enforcing a ban on the sale of non-certified, internet-connected CCTV cameras, primarily targeting Chinese manufacturers. To learn more about how this may affect you, feel free to check out our article.
Taxation overhaul
The Income Tax Act of 1961 will be officially retired and replaced by the Income Tax Act of 2025. This move will modernise tax language and simplify compliance for the common man.
Terminology will shift to provide more clarity as the terms ‘Assessment Year’ and ‘Previous Year’ will be gone, and all the financial reporting will be unified under a single ‘Tax Year’.
Furthermore, under the revised tax slabs, there will be zero tax for income up to Rs 12 lakh. With a standard deduction of Rs 75,000, the tax-free limit will increase to Rs 12.75 lakh.
Share buybacks will attract capital gains tax in the hands of shareholders. Also, a new Form 130 will be made mandatory to keep a record of TDS for the salaried class and senior citizens.
Also read: Apple Intelligence accidentally goes live in China, quickly pulled by Apple: Know what happened
Corporate and employment changes
Under the New Wage Code, an employee’s basic salary plus dearness allowance will have to be at least 50 per cent of the total CTC. This is to ensure that while the users’ take-home salary receives a hit, the long-term provident fund savings are increased.
Moreover, the timeline for the final settlements will also be shortened, as the companies will be legally required to complete all full and final dues within two working days of an employee’s departure.
Lastly, the LPG rules will also be updated to follow global energy trends, and the cooking gas prices will likely undergo monthly revisions based on international market fluctuations.
