Taxation of shareholder on buyback of shares


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Querist : Anonymous

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Querist : Anonymous (Querist)
02 January 2013 what is the tax impact on a shareholder incase of buyback of shares. is dividend more beneficial or buyback of shares.

Thank you in advance.

02 January 2013 In case of buyback of shares, the shareholder transfer's the shares to the company and the transaction results into capital gains.
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Dividend is received out of the profits of the company. Whereas I have explained about the buy back , in the previous para.
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It has to be judged by yourself, by applying the monetary senses, whether to get a calf from a cow, every year is better than selling the cow itself.
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