Budget 2026: 5 New Rules to Hit Small Investors Hard
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News18•02-02-2026, 06:42
Budget 2026: 5 New Rules to Hit Small Investors Hard
- •Budget 2026 introduces changes that will directly impact small investors' profits and investment freedom, despite aims for economic stability.
- •Securities Transaction Tax (STT) on F&O trading has significantly increased (futures from 0.02% to 0.05%, options to 0.15%), raising transaction costs for retail traders.
- •Share buybacks are now subject to capital gains tax for shareholders, removing their previous tax-efficient status and potentially reducing investor returns.
- •Interest expense deduction against dividend and mutual fund income has been removed, impacting investors using leverage or borrowed money.
- •Strict income reporting rules include penalties of up to 200% for misrepresentation and 50% for common errors, making ITR filing riskier for small investors.
Why It Matters: Budget 2026 introduces stricter tax rules and increased costs, significantly impacting small investors' returns and flexibility.
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