Buybacks to be taxed as capital gains; retail investors benefit
- Posted on February 2, 2026
- By Business News Today
- 3 Views
Buybacks to be taxed as capital gains; retail investors benefit
The budget introduces a significant change in how share buybacks are taxed. Individual shareholders will now pay a lower 12.5% tax on buyback proceeds, moving from dividend taxation to capital gains. Promoters will face different rates, with foreign promoters taxed at 30% and Indian promoters at 22%.
