Major Economic and Policy Changes Implemented from April 1

The beginning of a new month brings several significant changes in taxation, fuel prices, banking regulations, and automobile pricing. Starting today, April 1, several financial and economic reforms have come into effect. Key changes include a unified pension scheme for central government employees, a reduction in commercial LPG cylinder prices, and a hike in car prices. Here’s an overview of the ten major changes implemented today:

1. Commercial LPG Cylinder Price Reduced by ₹44.50

The price of a 19-kg commercial LPG cylinder has been reduced by ₹44.50 across major cities. In Delhi, the price has dropped to ₹1,762 from ₹1,803, while in Kolkata, it has come down to ₹1,868.50 from ₹1,913. However, the price of domestic LPG cylinders remains unchanged.

2. Income up to ₹12 Lakh Now Tax-Free Under New Tax Regime

Under the new tax regime, individuals earning up to ₹12 lakh annually will not have to pay income tax. For salaried individuals, the exemption limit rises to ₹12.75 lakh, considering the standard deduction of ₹75,000. No changes have been made to the old tax regime.

3. Discontinuation of Mahila Samman Savings Certificate (MSSC)

The Mahila Samman Savings Certificate (MSSC) scheme, which provided women with a 7.5% annual interest rate, has been discontinued. The last date for investment in this scheme was March 31, 2025.

4. Car Prices Increased Across Major Brands

Leading automobile manufacturers, including Maruti Suzuki, Tata Motors, Kia India, Hyundai India, and Honda, have raised their car prices. Maruti Suzuki has increased prices by up to 4%, varying across different models.

5. Inactive Mobile Numbers Will No Longer Support UPI Transactions

Mobile numbers that have been inactive for an extended period and linked to UPI accounts will be deactivated from the UPI system. Users with such numbers may face difficulties in making transactions.

6. Senior Citizens Get Double Tax-Free Interest Income

The tax exemption on interest income for senior citizens has been increased from ₹50,000 to ₹1 lakh. This benefit applies to interest earned from banks and post office savings.

7. Unified Pension Scheme (UPS) Launched for Central Government Employees

A new Unified Pension Scheme (UPS) has been introduced under the National Pension System (NPS). Government employees with at least 25 years of service will receive a pension amounting to 50% of their last 12 months’ average basic salary. The minimum pension guaranteed under this scheme is ₹10,000 per month. Employees will contribute 10% of their salary, while the government will contribute 18.5%.

8. Capital Gains Tax on High-Premium ULIPs

Unit Linked Insurance Plans (ULIPs) with an annual premium above ₹2.5 lakh will now be classified as capital assets. Gains from these policies will be taxed at 12.5% for long-term capital gains (held for more than 12 months) and 20% for short-term gains (held for less than 12 months).

9. Changes in Minimum Balance Requirements by Banks

Major banks, including SBI, Punjab National Bank, and Canara Bank, have revised their minimum balance requirements. The required balance will now depend on whether the account is in an urban, semi-urban, or rural branch. Failing to maintain the minimum balance may result in penalties.

10. Jet Fuel Prices Reduced, Air Travel May Get Cheaper

Oil marketing companies have slashed Aviation Turbine Fuel (ATF) prices, potentially making air travel more affordable. In Chennai, the price has been cut by ₹6,064.10 per kiloliter to ₹92,503.80. Other major cities also saw price reductions:

• Delhi: ₹89,441.18 (reduced by ₹5,870.54)
  
• Kolkata: ₹91,921.00 (reduced by ₹5,667.66)
  
• Mumbai: ₹83,575.42 (reduced by ₹5,494.61)
  

Petrol and Diesel Prices Remain Unchanged

Despite fluctuations in global fuel prices, petrol and diesel prices remain unchanged. As of today, petrol in Delhi costs ₹94.72 per liter, while diesel is priced at ₹87.62. In Mumbai, petrol is priced at ₹103.44 per liter, and diesel at ₹89.97.

These changes are expected to impact multiple sectors, influencing the cost of living, investment patterns, and overall economic activity in the country.