regulation · advanced
Buyback tax
Buyback tax refers to the tax treatment that has applied when Indian companies repurchase their own shares.
India has at times levied a company-level tax on buybacks of listed and unlisted shares under specific provisions.
Tax incidence can sit on the company rather than on each tendering shareholder, depending on the prevailing law.
Finance Act changes have altered buyback taxation, so the applicable year matters.
Offer documents usually summarise the tax framing relevant to that buyback.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.