<h1>Budget proposes higher Securities Transaction Tax on commodity futures and treating buyback proceeds as capital gains.</h1> The Budget proposes raising the Securities Transaction Tax on commodity futures from 0.02% to 0.05%, increasing derivative trading costs and likely dampening foreign portfolio investor flows, especially among high-frequency and derivative-focused funds. It also proposes that buyback proceeds be taxed as capital gains for all shareholders, altering the tax treatment of share repurchases and affecting shareholder after-tax returns.