INSIGHTS

Introduction : Corporate share buybacks have become one of the most scrutinized tools of tax policy in India, and the Finance Act, 2026 marks the third significant change in their taxation since 2019. Under Section 115QA, buybacks were taxed at a flat rate for the company and this income is tax-exempt for the shareholders. The Finance Act, 2024 has abolished this company - level levy and treated the whole buyback proceeds as deemed dividend in the hands of the shareholders. T