Budget proposes overhaul of buyback tax rules
pre-market1 source ↓written by the desknot a recommendation
- and non-corporate promoters
- 22% tax
- non-corporate promoters
- 30% tax
In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman announced a major overhaul of buyback tax rules. Buybacks will now be taxed as capital gains for all shareholders, with corporate promoters facing a 22% tax and non-corporate promoters a 30% tax. This change aims to protect minority shareholders and may prompt companies to rethink their capital allocation strategies between dividends and buybacks.
Not investment advice. For informational purposes only.