April 1 will mark the beginning of the 2025-2026 Financial Year, introducing significant changes in rules that will impact every individual’s finances and financial planning. Some of the changes include changes in rules for taxes, rental income, LPG, and fuel prices.
This change will benefit senior citizens and property owners as the TDS (Tax Deducted at Source) Limit has been increased to ₹1 lakh from ₹50,000 and ₹6 lakh from ₹2.4 lakh, respectively. This amended rule will offer greater tax-saving opportunities.
An increase from ₹7 lakh to ₹10 lakh has been done for the Tax Collected at Source (TCS) Limit for sending money abroad under the Liberalized Remittance Scheme (LRS). This change will directly benefit people who regularly transact money across the boundaries.
According to the recent announcement by the government, the education loans from specified financial institutions will be TCS-free. Previous rules attracted TCS of 0.5% for loans exceeding ₹7 lakh, and other education-related transactions attracted around 5% TCS.
The TDS limit for both dividends and mutual funds has been increased to ₹10,000 per financial year.
It has been anticipated that the prices for LPG cylinders will be revised by the oil companies on April 1, 2025. It is to be noted that the prices are reviewed every month.
The beginning of the new financial year might also bring price changes for Air Turbine Fuel (ATF), Compressed Natural Gas (CNG), and Piped Natural Gas (PNG). This possible change from April 1 will come with changes in transportation costs and disturbance in household budgets.