Budget proposes overhaul of buyback tax rules
after close1 source ↓written by the desknot a recommendation
- effective rate
- 22% for corporate promoters
- 30% for non-corporate promoters
In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman proposed a major overhaul of buyback tax rules to protect minority shareholders. Buybacks will now be taxed as capital gains, with an effective rate of 22% for corporate promoters and 30% for non-corporate promoters. This change may prompt companies to rethink their capital allocation strategies between dividends and buybacks.
Not investment advice. For informational purposes only.