Mitali
Quick Summary
Finance Minister Nirmala Sitharaman in Lok Sabha on Wednesday has proposed a change in the Finance Bill 2026, where a flat 12% surcharge will apply on capital gains earned from share buybacks. Here, This means that whenever an investors sell their shares back to a company during a buyback, the pro
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FAQ :
The Finance Bill 2026 proposes a flat 12% surcharge on capital gains earned from share buybacks.
Previously, surcharge rates varied based on the investor's total income. Now, a uniform 12% surcharge applies to everyone, regardless of income.
Middle-income and small investors may have to pay more tax on their buyback gains under the new flat surcharge system.
High-income investors could potentially see a reduced tax burden on their buyback gains compared to the previous system.
The Finance Minister proposed this change in the Finance Bill 2026 on a Wednesday.
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