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    What are the recent changes in the taxation of buyback shares?

    For buybacks completed on or after 1st April, 2026, shareholders are taxed only on the actual gain made from the buyback (Buyback price – purchase price). Earlier, the entire proceeds received from tendering shares in the buyback taxed as deemed dividend income in the hands of shareholders. The new rules align buyback taxation with the taxation of a normal share sale.

    The gain will be treated as Short-Term Capital Gain (STCG) if the shares are held for up to 12 months and are taxed at 20%. The gain will be treated as Long-Term Capital Gain (LTCG) if the shares are held for more than 12 months and taxed at 12.5%.

    What is Share Buyback/Repurchase? What can be the reasons for Share Buyback? What Is the Impact of Share Buyback on stock price? What Does Share Buyback Signify? Are there any charges that are levied for applying in Buyback? Where can I check the upcoming Buybacks? How can I cancel my Buyback application on ICICI Direct? Can I modify my Buyback application on ICICI Direct? Why have I received a lower payout for Buyback? What is the cut-off time to apply in buyback on ICICI Direct? Wipro Buyback What will be the tax implication if my shares are accepted in the Wipro Buyback?