Budget Day Input Taxation Sector Dhruv Chopra, Managing Partner, Dewan P. N. Chopra & Co
Below the Budget Day Input Taxation Sector By Dhruv Chopra, Managing Partner, Dewan P. N. Chopra & Co
Proposal to Tax buy back of shares by domestic companies in the hands of shareholders will potentially bring parity between tax implications on declaring dividends and buy back. Historically shareholders have enjoyed the benefits of a lower tax implication on buyback with savings of 12 % approx. on distribution of profits by companies in form of Buy back vs. Dividend. This benefit may no longer be available to shareholders. However, the cost of acquisition of shares bought back shall be allowed as capital loss to shareholder against any other capital gain income.
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