Union Budget 2026: FM Nirmala Sitharaman Proposes Taxing Buyback Proceeds as Capital Tax

Budget 2026: Buy back proceeds will be taxed as capital gains for shareholders, but promoters pay an extra price

• Business • One News Page: Monday, 2 February 2026

Share buybacks to be taxed as capital gains: Who gains and who loses?

Budget 2026 puts buybacks back in the spotlight, reshaping how India Inc returns cash and how investors respond. But in this new regime, who truly gains and who loses?

Sensex, Nifty slide as Budget hikes commodity trade tax

Mumbai: Stock market benchmark indices Sensex and Nifty tumbled on Sunday, February 1, trade after the Budget proposed to raise Securities Transaction Tax to 0.05 per cent on commodity futures from 0.02 per cent. The government will tax buyback proceeds for all types of shareholders as capital gains, Finance Minister Nirmala Sitharaman said on Sunday. After fluctuating in early trade, the 30-share BSE Sensex later bounced back but pared all gain…

Union Budget 2026: FM Nirmala Sitharaman proposes taxing buyback proceeds as capital tax

In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman proposed that the buyback proceeds for all types of shareholders will be taxed as capital gains. Details here.

Capital gains tax change in Budget 2026: FM says buyback for all shareholders to be taxed as capital gains

This recalcitration of buyback as capital gains is a welcome change and would pacify the concerns of taxpayers around buy-back route taxation, an expert said.

Budget 2026: Share Buyback Tax Overhaul Brings Relief to Minority Shareholders

Finance minister Nirmala Sitharaman announced a major overhaul of the tax treatment of share buybacks today, marking a shift in how India taxes capital returns. The changes are aimed at curbing tax arbitrage while protecting minority shareholders. Under the new regime, the effective tax rate on share buyback gains will be 22% for promoters which are domestic companies and 30% for promoters which are not domestic companies.  The announcement was …