Image Source : PTI Key changes that will impact India’s middle class from January 1
With just a few days left for the year 2024 coming to an end, and 2025 to start, several changes will come into effect in the country, impacting how households and working-class employees manage their finances and routines. From changes in LPG prices to new payment rules under UPI etc, these changes will affect many aspects of daily life of the country’s middle class.Take a look at the glimpse into the major changes that may impact your budget and plans starting January 1, 2025.
LPG cylinder prices
The LPG prices could be hiked in January 2025 as crude oil in the international market is currently priced at $73.58 per barrel. Even as the oil marketing companies review LPG prices on the first of every month, the price of domestic cylinders (14.2 kg) has remained unchanged for months, currently standing at Rs 803 in Delhi. It should be noted that the prices of commercial cylinders were increasing for the past many months, indicating a potential shift in domestic LPG rates soon.
Car prices likely to rise
Car prices are also likely to rise in January 2025, making vehicle purchases more expensive. Many major automakers such as Maruti Suzuki, Tata Motors, Hyundai, Mahindra, Honda, and Kia, along with luxury brands like Mercedes-Benz, Audi, and BMW, will increase vehicle prices by 2 to 4 per cent from January 1, 2025. The carmakers have cited higher production costs, increased freight charges, rising wages, and forex volatility as the reasons behind this hike.
Fixed Deposit rules to change
The bank customers must note that the rules related to fixed deposits for Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) will also change from January 1, 2025. The development comes as the Reserve Bank of India introduced updates earlier this year to enhance the safety of public deposits.
Changes in GST rules
Taxpayers will face stricter GST compliance regulations starting from January 1, 2025 and one of the significant changes is the mandatory Multi-Factor Authentication (MFA), which will be gradually implemented for all taxpayers accessing GST portals, enhancing security. This requirement was earlier only applied to businesses with an Annual Aggregate Turnover (AATO) exceeding Rs 200 million.
Transaction limit of UPI 123Pay
Starting from January 1, 2025, the transaction limit for UPI 123Pay, a service launched by the Reserve Bank of India (RBI) for feature phone users who may not have internet access, will be increased. Earlier, the maximum transaction limit was Rs 5,000, but starting January 1, 2025, this limit will be raised to Rs 10,000, offering greater flexibility to users of the services.
