Tax changes boost appeal of share buybacks for investors
after close1 source ↓written by the desknot a recommendation
- slab rates
- 5% to 30%
The Union Budget 2026–27 proposes to tax share buyback proceeds as capital gains, reducing the tax burden for retail investors. Previously taxed as dividend income, this change reverses the 2024 framework, which imposed higher slab rates of 5% to 30%. This shift may enhance investor sentiment and encourage more companies to pursue buybacks.
Not investment advice. For informational purposes only.