The article explains that share buybacks are regaining popularity in India after recent tax reforms restored their attractiveness. Companies use buybacks to return surplus cash, signal confidence in undervalued stock prices, and enhance shareholder value. A key change effective from April 1, 2026, taxes only the gains from buybacks as capital gains rather than treating the entire proceeds as dividend income. This provides greater clarity and fairness for investors while preserving buybacks as an efficient capital allocation tool, leading to renewed corporate interest in the route.
Please click here to read the full article by Raj Ramachandran, Partner, published in News9.
Raj specializes in Corporate Commercial, Banking & Finance and Cross Border Investments & Acquisitions.