New tax on share buybacks impacts shareholders and promoters
after close1 source ↓written by the desknot a recommendation
- tax rate
- 22%
- promoters will see
- 30%
Finance Minister Nirmala Sitharaman announced that share buybacks will now be taxed as capital gains for all shareholders in the Union Budget 2026-27. Corporate promoters face an effective tax rate of 22%, while non-corporate promoters will see 30%. 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.