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.
Revised Tax Rules for Mutual Funds
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.
New Income Tax Slabs
In the Union Budget 2025, the government has introduced higher exemptions and rebates under the new tax regime.
- Income up to ₹12 lakh is now tax-free, All thanks to a higher rebate limit.
- Employees can now claim a higher deduction on NPS contributions made by their employer. That has been increased from 10% to 14%.
This means more savings for salaried individuals opting for the new tax regime.
LPG Prices
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.
UPI new rule
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.
Centre Proposes Change in Tax Distribution to States
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.
How These Changes Impact You
- Mutual fund investors need to reconsider their tax planning strategies.
- Salaried individuals may benefit from revised income tax exemptions.
- Small businesses using commercial LPG may see slight cost savings.
- State governments might receive lesser funds from the Centre, affecting future projects.
These were the changes that will be implemented starting from March 2025 by the government of India.