Finance Minister Nirmala Sitharaman proposes taxing share buybacks similarly to dividends from Oct 1, 2024.

Finance Minister Nirmala Sitharaman proposes taxing share buybacks similarly to dividends in the hands of shareholders from Oct 1, 2024. Investors will pay tax on full value received from buybacks, with the cost on tendered shares treated as a capital loss. This change aims to bring parity between tax implications on dividends and buybacks, which previously offered lower tax implications for shareholders, potentially decreasing buybacks and encouraging capital expenditure.

July 23, 2024
5 Articles