New Income Tax Act 2025 and SEBI Mutual Fund Regulations 2026 Take Effect

1 April 2026
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Source: ClearTax; Upstox News; Multiple AMC Notices (Quant, JM Financial, ICICI Prudential, ABSL, Baroda BNP, PGIM)

Two major regulatory changes took effect simultaneously on 1 April 2026. The new Income Tax Act 2025 replaced the 60+ year old 1961 Act, with simplified provisions and streamlined compliance. Separately, SEBI’s Mutual Fund Regulations 2026 became effective, introducing the BER-based expense structure. Multiple AMCs issued notices revising their expense structures. Fund categories have been reclassified and scheme documents updated.

💰 Impact on your wallet: For tax filing: the new Act applies to income earned from 1 April 2026 onwards (AY 2027-28). Your current year’s return (AY 2026-27) will still use the old Act’s framework. Expect simplified forms and processes for next year. For mutual funds: check the updated fact sheets for new BER disclosures. No action needed from you — changes happen automatically at the fund level. Your SIPs, switches, and redemptions continue to work normally.

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