challan for buy back of shares
This query is : Resolved
Dhruv Jain
(Querist)
07 March 2017
which challan is required for making payment of taxes during buyback of shares and under which code?
19 July 2024
In India, when a company undertakes a buyback of shares, certain taxes are applicable. The payment of these taxes is typically done using a challan specified by the Income Tax Department. Here’s a brief overview of the relevant tax and the challan required:
Tax Applicable:
Buyback Tax: According to the provisions of the Income Tax Act, 1961, a tax is levied on the distributed income arising from buyback of unlisted shares by a company. This tax is currently known as 'Buyback Tax' or 'Tax on Distributed Income'.
Challan and Code:
Challan: The payment of Buyback Tax is made using challan No. ITNS 282.
Form: Challan No. ITNS 282 is used for payment of Securities Transaction Tax (STT), Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax, Other Direct Taxes & Gift Tax.
Code: The code for payment of Buyback Tax is 0020.
Procedure:
Filling the Challan: To make the payment of Buyback Tax, you need to fill out challan No. ITNS 282.
Details: Ensure that all relevant details such as PAN, assessment year, type of payment (Buyback Tax), and amount are correctly filled in the challan.
Payment: You can make the payment physically at designated banks or online through the income tax e-payment portal.
Compliance:
After making the payment using challan ITNS 282 with code 0020, ensure to retain the counterfoil or acknowledgment of payment as proof.
Additionally, complete any other formalities or filings required under the Income Tax Act for the buyback of shares.
Consultation:
Always consider consulting with a qualified tax professional or chartered accountant to ensure compliance with the specific requirements related to buyback of shares and payment of applicable taxes. They can provide tailored advice based on your company's circumstances and ensure all tax liabilities are properly addressed.
Tax Applicable:
Buyback Tax: According to the provisions of the Income Tax Act, 1961, a tax is levied on the distributed income arising from buyback of unlisted shares by a company. This tax is currently known as 'Buyback Tax' or 'Tax on Distributed Income'.
Challan and Code:
Challan: The payment of Buyback Tax is made using challan No. ITNS 282.
Form: Challan No. ITNS 282 is used for payment of Securities Transaction Tax (STT), Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax, Other Direct Taxes & Gift Tax.
Code: The code for payment of Buyback Tax is 0020.
Procedure:
Filling the Challan: To make the payment of Buyback Tax, you need to fill out challan No. ITNS 282.
Details: Ensure that all relevant details such as PAN, assessment year, type of payment (Buyback Tax), and amount are correctly filled in the challan.
Payment: You can make the payment physically at designated banks or online through the income tax e-payment portal.
Compliance:
After making the payment using challan ITNS 282 with code 0020, ensure to retain the counterfoil or acknowledgment of payment as proof.
Additionally, complete any other formalities or filings required under the Income Tax Act for the buyback of shares.
Consultation:
Always consider consulting with a qualified tax professional or chartered accountant to ensure compliance with the specific requirements related to buyback of shares and payment of applicable taxes. They can provide tailored advice based on your company's circumstances and ensure all tax liabilities are properly addressed.
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