The best way to predict the future is to create it." – Peter Drucker
As we step into the new year, it’s crucial for businesses, taxpayers, and individuals to stay ahead of regulatory changes that could have a significant impact. January 1, 2025, brings a wave of new laws and reforms designed to improve tax compliance, enhance security, and streamline operations across various sectors. Below is a detailed summary of the most important updates you need to know for the year ahead.
1. Goods and Services Tax (GST)
Mandatory Multi-Factor Authentication (MFA):
In a move to enhance security, the government now requires all GST taxpayers to enable Multi-Factor Authentication (MFA). This means that access to GST services will require more than just a password—users will need to authenticate via One-Time Passwords (OTPs) sent to their registered mobile numbers. Ensure your contact details are updated to comply with this new requirement and avoid disruptions.E-Way Bill Validity Update:
E-way bills, which are used for the movement of goods, will now only be valid for documents issued within the last 180 days. This change is aimed at curbing tax evasion and ensuring that goods are moved within a prescribed time frame. Businesses must ensure that all documentation is processed in a timely manner to avoid delays or non-compliance.
2. Income Tax
- Tax Collected at Source (TCS) on Luxury Goods:
From January 1, 2025, the government will levy a Tax Collected at Source (TCS) on luxury goods purchases exceeding ₹10 lakh. This move is part of efforts to enhance tax compliance among high-value transactions. Taxpayers involved in purchasing luxury goods should prepare for this change and adjust their accounting practices accordingly.
3. Credit Cards and Banking
RuPay Credit Card Lounge Access – New Eligibility Criteria:
RuPay credit cardholders can now enjoy complimentary airport lounge access, but this benefit will be granted based on a tiered spending model. Businesses and individuals with RuPay cards should check their cardholder status and spending levels to ensure eligibility for this valuable perk.Fixed Deposit (FD) Withdrawal Flexibility:
The Reserve Bank of India (RBI) has updated rules for fixed deposits, particularly for small deposit amounts. FDs of less than ₹10,000 can now be withdrawn prematurely, offering more flexibility. Additionally, full withdrawals are now permitted in cases of critical illness. This change provides greater liquidity and support for deposit holders when needed.
4. Employees' Provident Fund (EPF)
- ATM Withdrawals for EPF Holders:
In an effort to modernize EPF services, the Ministry of Labour & Employment will soon allow EPF account holders to withdraw funds directly from ATMs. This feature, expected to roll out in 2025, will simplify the process of accessing one’s retirement savings.
5. International Travel
Thailand’s e-Visa Expansion:
Thailand has expanded its e-Visa program to include all countries, making it easier for travelers to apply for a visa online. This change streamlines the process for Indian travelers and reduces the time spent on visa formalities.U.S. Visa Rescheduling Policy:
In a move aimed at increasing flexibility, the U.S. Embassy in India has updated its visa policy, allowing non-immigrant visa applicants to reschedule their appointments once without incurring additional fees. Subsequent rescheduling, however, will require a new application and fee payment.
