Everything that changes in India in April 2025

Key Changes Effective from April 1, 2025: TDS Rules and Passport Reforms

The Union Budget 2025 has introduced significant changes to Tax Deducted at Source (TDS) rules, effective from April 1, 2025. Additionally, India has rolled out major passport reforms aimed at streamlining processes and enhancing security. Here’s a quick overview:

TDS Rule Changes

1. Senior Citizens: The TDS threshold for interest income has been doubled to Rs 1 lakh. No TDS will be deducted if interest earnings remain below this limit.
2. General Citizens: The TDS limit on interest income has been raised from Rs 40,000 to Rs 50,000.
3. Lottery Winnings: TDS will now apply only if a single transaction exceeds Rs 10,000, up from the earlier cumulative limit.
4. Insurance Commission: The TDS threshold has been increased from Rs 15,000 to Rs 20,000.
5. Mutual Funds and Stocks: The TDS exemption limit on dividend income has been raised from Rs 5,000 to Rs 10,000.

These changes aim to reduce the tax burden on individuals and provide financial relief to senior citizens, investors, and commission earners.

Passport Reforms

1. Standardization of Birth Certificates: Individuals born on or after October 1, 2023, must submit a birth certificate as the sole proof of date of birth for passport applications.
2. Removal of Residential Address: Residential addresses will no longer be printed on passports, replaced by a computer-readable barcode for enhanced privacy.
3. Color-Coded Passports: White: Government officials Red: Diplomats Blue: Ordinary citizens.
4. Expansion of Passport Seva Kendras: The number of POPSKs will increase from 442 to 600 by 2030, improving accessibility.
5. Removal of Parents’ Names: Parents’ names will no longer appear on passports, promoting inclusivity and privacy.

These reforms aim to modernize passport processes, enhance security, and make documentation more efficient for individuals and businesses alike.