New rule of tax on mutual fund dividends, now the entire amount will be in the tax net, big relief over: – ..

News India Live, Digital Desk: An important tax change has been made in Budget 2026 for mutual fund and stock market investors. now from mutual funds Dividend Income But the rules for calculating tax have been made more strict.

As per the proposals of Budget 2026, 1 April 2026 Now no tax on dividend income from mutual fund units or shares from Interest Deduction Will not get it.

1. What was the Old Testament? (Old Rule)

According to the rules till now, if an investor has decided to buy a mutual fund or share Loan was taken, then the loan was repaid Interest He could deduct it from his dividend income.

Limit: This deduction is limited to a maximum of total dividend income. 20% Was limited to.

Example: If you received ₹1,00,000 dividend and paid ₹30,000 interest, you would only pay tax on ₹80,000 after deducting ₹20,000 (20%).

2. What changed now? (The Change)

The new budget proposes to amend section 93(2) (under the potential new Income Tax Act 2025):

Zero deduction: Now the interest paid on the loan taken to earn dividend income no cuts Will get it.

Tax on entire income: Now the entire dividend amount (Gross Dividend) you receive will be added to your ‘Income from Other Sources’ and your tax slab Tax will be levied on it accordingly.

3. Which investors will be affected the most?

HNI and Corporate Treasury: For those big investors who borrow huge amounts of money to invest in the market, the cost of investment will increase significantly.

Margin trading: Investors who buy dividend paying shares by taking margin from brokers will no longer get any tax benefit on interest.

Common Investor: This change will not have any direct impact on those who invest from their savings and do not take loans.

4. Other important tax changes of Budget 2026

Buyback: Now the income from buyback of shares by companies is called ‘dividend’ instead of ‘dividend’. Capital Gains Will be taxed as.

Increase in STT: Securities Transaction Tax (STT) rates on futures and options (F&O) have been increased, making short-term trading expensive.

SGB ​​Tax: Tax exemption on Sovereign Gold Bond (SGB) will now be available only to those who have purchased it directly from RBI; Those buying from the secondary market will now have to pay tax.