The finance ministry is considering a proposal to shift the tax liability

The finance ministry is considering a proposal to shift the tax liability

The finance ministry is considering a proposal to shift the tax liability on buyback of shares from companies to individual shareholders who participate in the share repurchase process. The idea is to bring taxation of share buybacks similar to the way dividend income is taxed at the hands of the shareholders. Also, the shift in tax liability will do away with the current incidence of double taxation of buyback proceeds, with shareholders also paying capital gain taxes on the gross proceeds received.



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