Sec 10(34A) - Income on account of buyback of unlisted shares - Is it completely tax exempt?

Rish s | Last updated: 23 April 2022

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Section 10(34A) states that income received by a shareholder from a company's buyback of unlisted shares is exempt from tax. However, this exemption isn't always absolute. Section 14A and Rule 8D allow for disallowance of certain expenses related to earning this income, though the disallowance cannot exceed the total expenses claimed.

Incomes which do not form part of total income Sec 10(34A) Any income arising to an assessee, being a shareholder, on account of buyback of shares (not being listed on a recognized stock exchange) by the company as referred to insection 115QA Is this income completely Tax exempt? Section 14A (Expenditure incurred in relation to income not includible in total income) and amended Rule 8D may be read alongside to check if any tax liability can come in this regard. However, it may

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1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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About the Author

Rish s

Proprietor of R.Sethia Associates, Chartered accountants. CA year 2000. Experience in Banking, Corporate law, Manufacturing cos systems and audit, Income Tax etc.

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