Guide to Buyback of Shares in India under Companies Act & Tax Considerations

Affluence Advisory | Last updated: 19 April 2024

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This guide explains the process and considerations for companies in India looking to buy back their own shares. It details the conditions set out in the Companies Act, 2013, including debt-equity ratios, limits on buyback value, and approval requirements. The article also covers the tax implications under Section 115QA of the Income-tax Act, outlining the tax rate on distributed income and how it's calculated, while noting that shareholders are exempt from this tax.

INTRODUCTION With the flourishing economic conditions in India and the governments proactive measures to ensure that there is ease of doing business, various foreign institutional investors, foreign multinationals companies have been making investments in the country. While making investment

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Affluence Advisory

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Why Affluence Advisory for any Tax Compliance services? Affluence Advisory Pvt Ltdis a multi-disciplinary consulting and compliance firm that is managed by a specialized team of Chartered Accountants, Company Secretaries, Corporate Lawyers, and Other Professionals who are committed to providing a quality experience ... Read more

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