As March 2025 begins, there will be several significant revised changes to India’s tax system, investments, and fuel prices. These all changes are set to impact common man’s everyday life. From mutual fund taxation rules to LPG price adjustments, let’s take a quick look at what’s changing and how it affects you.
If you’re someone who invests in mutual funds, then you must be prepared for some changes. Starting March 2025, indexation benefits on debt mutual funds will no longer be available. This means that the tax on your long-term capital gains from debt mutual funds will now be according to your income tax slab. Unlike earlier, it was a fixed 20% tax rate after indexation. This change will majorly affect investors looking for tax-efficient returns from debt funds.
In the Union Budget 2025, the government has introduced higher exemptions and rebates under the new tax regime.
This means more savings for salaried individuals opting for the new tax regime.
There will be no change in the price of domestic LPG cylinders as of February 2025. The cost remains at ₹803 in Delhi. However, prices of commercial LPG cylinders have been reduced by ₹7, bringing relief to small businesses and restaurants.
From March 1, 2025, UPI users can pay life and health insurance premiums using the Bima-ASBA facility. Under this system, policyholders can block the premium amount in their bank account instead of paying upfront. The insurer will receive the money only if the policy is approved. If the policy is rejected, the amount will be unblocked. This will make sure the secure and hassle-free payments. The IRDAI has introduced this feature to make insurance payments more convenient and transparent.
The central government is in talks to reduce the share of federal taxes allocated to states from 41% to 40% starting from 2026. If approved, this could impact state budgets and public welfare spending.
These were the changes that will be implemented starting from March 2025 by the government of India.