The Economic Times

Stock buy-back will be considered as capital gains with effective rates of 22% and 30%, announces FM in Budget 2026

Union Budget 2026 proposes to tax buy-back for all types of shareholders as capital gains. However, to disincentivize this use of tax arbitrage, promoters will pay an additional buyback tax. As a result, this will make the effective tax 22% for corporate promoters. For non-corporate promoters, the effective tax will be 30%.