12% buyback surcharge clarified in Finance Bill amendments
pre-market1 source ↓written by the desknot a recommendation
- on share buybacks
- 12% surcharge
- for promoters
- 30%
- for promoter companies
- 22%
The Lok Sabha passed the Finance Bill, 2026, confirming a 12% surcharge on share buybacks. This amendment clarifies that buyback proceeds will be taxed as capital gains at rates of 30% for promoters and 22% for promoter companies, reducing the tax burden for high-income taxpayers. This change aims to enhance procedural fairness in income tax administration.
Not investment advice. For informational purposes only.