BuyBack Tax

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While paying buy back tax by the company is it required to compulsorily calculate sukindlrcharge and cess on distributed amount over and above 20%. Kindly tell me which section talks about the surcharge and cess to be paid
Replies (3)

It is the Finance Act which quantifies the rate of surcharge & cess as may be applicable. 

Buyback of shares - Section 115QA explains. 

Sec 115QA talks only about paying BBT at 20%. Even then the company has to actually pay BBT at 23.072%. Right?

Have a look at Finance Act, 2017 it says that on rates specified in certain sections including Section 115QA shall be added with a surcharge of 12% and Cess of 3%

20%+12%+3% = 23.072%


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