Key Changes Impacting Indian Households and Employees Starting January 1, 2025

As 2024 comes to a close, several changes will take effect in India from January 1, 2025, influencing everyday life, especially for the middle class and working professionals. These adjustments will impact household budgets, vehicle purchases, and tax compliance.

LPG Price Hike
LPG prices are expected to increase in January 2025, with crude oil prices currently at $73.58 per barrel. Although domestic LPG cylinder prices have remained steady at Rs 803 in Delhi, rising commercial cylinder prices suggest a potential shift for domestic LPG rates as well.

Car Price Increase
Car prices are set to rise by 2-4% in January 2025. Major automakers, including Maruti Suzuki, Tata Motors, and luxury brands like Mercedes-Benz and Audi, have cited higher production and freight costs, wage increases, and forex volatility as reasons behind the price hike.

Fixed Deposit Rule Changes
Starting January 1, 2025, new rules for Fixed Deposits (FDs) with Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) will be implemented. These changes, introduced by the Reserve Bank of India, aim to enhance the safety of public deposits.

GST Compliance Update
Taxpayers will face stricter GST regulations, including mandatory Multi-Factor Authentication (MFA) for accessing GST portals. This requirement, previously applicable only to large businesses, will be expanded to all taxpayers.

UPI 123Pay Transaction Limit
The transaction limit for UPI 123Pay, used by feature phone users, will increase from Rs 5,000 to Rs 10,000, allowing greater flexibility in financial transactions.