Tax changes boost appeal of share buybacks for investors
pre-market1 source ↓written by the desknot a recommendation
- faced rates
- 5% to 30%
- that taxed buybacks
- 2024 framework
The Union Budget 2026–27 announced that share buyback proceeds will now be taxed as capital gains instead of personal income, which previously faced rates from 5% to 30%. This shift aims to simplify taxation for retail investors, enhancing the attractiveness of buybacks. Finance Minister Nirmala Sitharaman emphasized that this change reverses the 2024 framework that taxed buybacks as dividend income, leading to clearer tax outcomes for shareholders.
Not investment advice. For informational purposes only.