<h1>CBDT Clarifies Tax Rules: Choose Initial Year for Deductions, Tax Share Buybacks as Capital Gains, Income Classification.</h1> The Central Board of Direct Taxes (CBDT) has issued clarifications to reduce litigation and ease compliance under the Income-tax Act. Circular No. 1/2016 allows eligible taxpayers to choose the initial year for claiming deductions under Section 80IA. Circular No. 3/2016 specifies that consideration from share buybacks between April 1, 2000, and May 31, 2013, will be taxed as capital gains, not dividends. Circular No. 6 outlines when income from shares and securities is treated as business income or capital gains. Additionally, taxpayers in Joint Development Agreement cases can pay capital gains tax in three annual installments with interest.