Finance Rules Changing From April 1, 2024: The new financial year started from 1st April i.e. from today. The new fiscal year begins with several economic changes that have a direct impact on citizens’ finances. Generally, all the provisions announced in the budget speech will come into effect from that day. So, every citizen needs to know about the changes from 01 April 2024.
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The beginning of the new financial year comes with changes that will have an impact on your savings plans (NPS and EPFO), taxes, FASTags, and other financial-related rules. Understanding these changes can save you more and avoid the headaches of breaking the rule. It’s worth taking some time to learn about them.
Automatic transfer of EPFO balance
Changing jobs is a common practice especially in the private sector, keeping this in mind the Employees’ Provident Fund Organization (EPFO) has implemented an automatic transfer system for your provident fund balance. It doesn’t manually request a transfer when you start a new position. EPFO will automatically credit your PF balance to your new employer’s account, ensuring the continuity of your retirement savings.
Two-factor authentication for NPS
Two-factor Aadhaar-authentication process to access the CRA system through a password in an enhanced system to implement additional security measures for the National Pension System account will be implemented from April 01. This was announced vide circular dated 15 March 2024.
The introduction of the two-factor Aadhaar authentication system aims to provide additional security to authenticate fingerprints and reduce forgery attempts, thereby increasing the security of Aadhaar-authenticated transactions.
The new tax system becomes a default
The new tax regime will become the default option from 01 April 2024. This means that unless you specifically opt out of the old tax system, your tax will automatically be calculated under the new rules.
The tax brackets of the new system will remain the same for the financial year 2024-25 (tax year 2025-26). There were no changes announced in the recent budget. Even better, if your income per year is Rs. 7 lakhs or less, you will not pay any income tax under the new system!
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Fast tag
To avoid toll hassles, you should complete your Fastag KYC by March 31. After that, banks can deactivate your FAST Tag if it is not updated. Without KYC, payments won’t work and you may end up paying double toll charges. Follow NHAI guidelines for smooth travel at toll plazas.
