Buy back of share Tax Treatment

its taxable in the hands of the shareholder as CG

Originally posted by : Mukund
	its taxable in the hands of the shareholder as CG

I am agree with mukund and further deduction under section 48 are also allowed on the capital gain.

Dear Mukund,

Treatment Under Income Tax Act in case of Buy Back -

1) Company - No TREATMENT SINCE REDUCTION OF SHARE CAPITAL IN TERMS OF SEC 77 A OF THE COMPANIES ACT & REDEMPTION OF PREFRENCE SHARES ARE NOT TREATED AS DEEMED DIVIDEND U/S 2(22)

2) Shareholder-  Capital Gain shall be computed u/s 46A