Capital gains on share buy-backs turn on consideration, promoter status, and deemed-dividend treatment under the updated tax regime. Capital gains on buy-back of shares or specified securities are computed with reference to the consideration received and cost of acquisition. Under the new section 69, buy-back consideration is deemed capital gains, and promoter buy-backs under the Companies Act attract an additional income-tax charge in addition to normal capital gains tax. The note also explains the earlier section 46A regime, the deemed-dividend treatment for domestic company buy-backs from 01.10.2024, and the special treatment of listed share buy-backs and specified securities.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains on share buy-backs turn on consideration, promoter status, and deemed-dividend treatment under the updated tax regime.
Capital gains on buy-back of shares or specified securities are computed with reference to the consideration received and cost of acquisition. Under the new section 69, buy-back consideration is deemed capital gains, and promoter buy-backs under the Companies Act attract an additional income-tax charge in addition to normal capital gains tax. The note also explains the earlier section 46A regime, the deemed-dividend treatment for domestic company buy-backs from 01.10.2024, and the special treatment of listed share buy-backs and specified securities.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
