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The Economic Times

Business / The Economic Times

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Buybacks to be taxed as capital gains; retail investors benefit

The budget introduces a significant change in how share buybacks are taxed. Individual shareholders will now pay a lower 12.5% tax on buyback proceeds, moving from dividend taxation to capital gains. Promoters will face different rates, with foreign promoters taxed at 30% and Indian promoters at 22%.

2 Feb 2026 6:14 am