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of <h1>Finance Bill 2019 Amends Section 115QA: Extends 20% Tax on Share Buy-backs to Listed Companies, Tackles Tax Avoidance.</h1> The Finance (No. 2) Bill, 2019, aims to strengthen anti-abuse measures by extending the tax provisions under Section 115QA of the Income Tax Act to include listed companies. Previously applicable only to unlisted companies, this section imposes a 20% additional income tax on distributed income from share buy-backs. The amendment addresses tax avoidance practices where companies opt for share buy-backs over dividends to benefit from lower capital gains tax rates. Effective from July 5, 2019, the amendment also extends tax exemptions to shareholders of listed companies for buy-backs where the company has paid the additional tax.
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