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Buy back of shares by domestic companies

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varun.v

varun.v (Querist)
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26 June 2014 on which income a domestic company is required to pay additional tax under sec-10(34A)of the act

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 June 2014 the tax is not paid on the income under 10(34A) but under 115QA on the amount of money distributed to shareholders on buyback of the shares by company. the tax is at 20%. It is not company's income. and is similar to dividend distribution tax.

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Rupesh Jain

Rupesh Jain (Expert)
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26 June 2014 this is for unlisted company who buy back his share from shareholder u.s 77A of company act.
tax is 20%+sc+ces is full & final payment it is not creditable by co. or shareholder,
it is effect from 1.6.2013.

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