July brings a lot more this year; it’s more than just the second half of the calendar—it brings a new set of rules that could impact your financial moves. From tax slabs to UPI updates, these changes can potentially impact your earnings, spending, savings, and investments, regardless of your status—salaried, self-employed, or simply someone trying to get your savings in shape.
Let’s take a deep look at the key financial changes that kicked in from July 1, 2025, and what they mean for your wallet.
1. New Income Tax Regime Becomes Default
Starting FY 2025-26, the new income tax regime will be the default option.
• New slabs mean no tax up to ₹4 lakh and progressive rates up to 30%.
• Income tax up to ₹12 lakh is now tax-free for a higher rebate of ₹60,000, under Section 87A.
Salaried individuals can now benefit more with a standard deduction of ₹75,000, making income up to ₹12.75 lakh tax-free.
What To Do
Compare both regimes carefully. If you claim deductions under 80C, HRA, etc., you must opt-in for the old regime manually while filing ITR.
Also Read: New vs Old Tax Regime for Salaried
2. PPF Interest Rate May Drop Below 7%
There’s a high possibility of the PPF interest rate dropping to around 6.55% for July–Sept 2025. This would be the lowest in decades and may impact those relying on PPF for stable, tax-free returns.
What To Do
It would be wise to keep an eye on the government’s official update at the end of June. If you’re someone who is relying on PPF for long-term savings, it is best to explore diversified options, just in case.
3. RBI’s Neutral Stance: Loans To Get Cheaper
Following June’s repo rate cut of 50 bps (to 5.50%), the RBI has adopted a neutral stance.
• This is great news for borrowers—lower EMIs on home, personal loans, and business loans.
• On the other side, fixed deposit and savings account rates might take a hit and decline.
What To Do
As the interest rates are low, it is the best time for people who are planning to take a loan or move to a debt consolidation loan and make everything manageable.
It would be an advantage to use aggregator platforms like Buddy Loan and explore loan options from multiple verified lenders in one go.
4. UPI to Show Real Beneficiary Name Before Payment
From June 30, 2025, UPI apps must show only the ultimate beneficiary’s name (as per bank records) before any P2P or P2PM transfer.
This move aims to reduce mistaken transfers and fraud by eliminating confusing aliases. Before, the name shown before confirming the payment could be a nickname or display name added by the user—like ‘Mom’, ‘Rent’, or ‘Airtel Prepaid’.
Now, UPI apps must only display the recipient’s actual bank-verified name—called the ultimate beneficiary name—on the payment confirmation screen before the transaction is completed.
What To Do
• Always double-check the name before sending money. This tiny step could save you a lot of hassle.
Suggested Read: Top UPI Apps in India
5. More Time to File Your ITR
The ITR filing deadline for FY 2024-25 has been extended to September 15, 2025, giving you 6 extra weeks.
Great news if you’re a salaried employee or pensioner who’s been delaying paperwork.
What To Do
It is never a good idea to wait around, especially with your finances. Don’t wait till the last minute. Early filers avoid errors—and get refunds quicker. Also, remember: it is a good practice to check your credit score for free on platforms like Buddy Score to strengthen your loan eligibility while filing.
6. PAN-Aadhaar Link Deadline Ends
If you haven’t linked your PAN with Aadhaar yet, July 1 is your last chance.
• PANs not linked will be considered inoperative.
An inoperative PAN means you won’t be able to file ITR, invest in mutual funds, or open bank accounts. It may also lead to higher TDS deductions and transaction delays.
Keeping your PAN active ensures seamless access to all major financial and government services.
What To Do
Log in to the Income Tax e-filing portal and link your PAN-Aadhaar now. It’s a 2-minute task with long-term consequences. The reactivation fee is ₹1,000, and the process can take up to 30 days.
7. Credit Card Auto-Debit Rules Get Tighter
RBI now requires banks to send transaction-specific alerts before auto-debiting amounts above ₹5,000 from credit cards.
• No confirmation = No debit. This gives you better control over big-ticket deductions.
This move safeguards you from surprise deductions—especially EMIs, subscriptions, or high-value charges. It also reduces disputes and gives you the final say before money leaves your credit card.
What To Do
Keep your SMS/email alerts turned on. You’ll never be caught off guard again.
8. Changes in TCS on Foreign Transactions
Planning an international trip or sending funds abroad? Well, this update could come in handy.
• TCS on foreign remittances above ₹7 lakh now stands revised based on purpose—20% for non-education/non-medical remittances.
The 20% TCS (Tax Collected at the Source) can significantly impact large expenses like overseas tours, gifting, or investments. Knowing the purpose-wise rates helps you avoid unexpected tax outflows or liquidity crunches.
What To Do
Understand TCS applicability before swiping your card abroad or making international investments. Budget accordingly. Make sure you have the best credit cards at your disposal.
9. New GST Return Filing System
GSTN (Goods and Services Tax Network) has rolled out a simplified return filing system for small businesses under Phase 2 of the GST 2.0.
• This update might prove superior, with fewer forms, smarter reconciliation, and better input credit tracking.
Under GST 2.0 Phase 2, businesses with turnover up to ₹5 crore benefit from streamlined compliance. Auto-filled forms and improved invoice matching mean fewer errors and quicker refunds.
What To Do
If you’re a GST-registered business, talk to your CA or explore updated filing tools. This could save time and reduce errors.
10. Aadhaar-Based E-KYC for Loan Approvals
Starting July 2025, many banks and NBFCs are officially shifting to Aadhaar-based e-KYC as part of compliance with digital onboarding mandates. This makes loan applications faster and simpler, with minimal paperwork and instant verification.
• It aligns with the Digital India initiative’s July compliance deadline for regulated entities to adopt Aadhaar XML or Video KYC where applicable.
What To Do
If you are in need of urgent funds, you can download the Buddy Loan App and apply for a personal loan in minutes with Aadhaar-based verification. Just a quick heads up—Buddy Loan is not your lender but a guide—your buddy for loans.
Final Thoughts
July 2025 brings in a wave of changes for your finances—some exciting, some worth a closer look. But one thing’s clear: being informed puts you in control. Let it be weighing tax options or wondering how new rules might affect your EMIs; staying ahead makes all the difference.
And if you’re considering a loan, Buddy Loan can help simplify that journey. It’s not a lender but a smart digital platform that connects you with trusted lending partners—based on what fits you best. Quick, reliable, and built around your needs.
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Frequently Asked Questions
Is the new income tax regime now mandatory?
No, but it becomes the default. You can still opt for the old regime while filing your ITR.
Has the ITR deadline changed for salaried individuals?
Yes, the new deadline for FY 2024-25 is now September 15, 2025.
What’s the new update about credit card auto-debits for big amounts?
From July 2025, banks must get your confirmation before auto-debiting any credit card transaction above ₹5,000. No approval = no charge.
Is it true that I might lose access to my PAN if I don’t link it with Aadhaar?
Yes. If your PAN isn’t linked by July 1, 2025, it will become inoperative—affecting your tax filings and even financial transactions.
Will my UPI app now show a different name of the person instead of the one I saved when sending money?
Exactly. Starting June 30, UPI apps must display the actual beneficiary’s bank-verified name before you hit send.
Will Aadhaar-based e-KYC speed up my loan approval?
Yes. From July 2025, many lenders are using Aadhaar e-KYC for faster, paperless onboarding.
