New tax on share buybacks impacts shareholders and promoters
pre-market1 source ↓written by the desknot a recommendation
- for corporate
- 22%
- for non-corporate entities
- 30%
In a significant tax overhaul, Finance Minister Nirmala Sitharaman announced that share buybacks will now be taxed as capital gains for all shareholders. Promoters face an additional buyback tax, raising rates to 22% for corporate and 30% for non-corporate entities. This change aims to protect minority shareholders and may prompt companies to rethink capital allocation strategies between dividends and buybacks.
Not investment advice. For informational purposes only.