INSIGHTS

Introduction : The Union Budget 2026 has revisited one of the most debated issues in Indian corporate tax law: what is the appropriate tax treatment for a company's choice to distribute excess cash to shareholders via dividends, buybacks, or reinvestment for capital expansion ? For the second time in less than two years, the government has altered the nature of buyback proceeds, transitioning them away from the dividend structure and reverting to the capital gains system effe