Capital gains on shares buyback by company

After amendment in July-2019, company is liable to pay buyback tax @ 20% on difference between market price and issue price. Shareholders are not liable to pay any tax. This amendment was brought into picture to bring dividend distribution and buyback at par with each other. Before this amendment, companies resorted to the practice of buyback to avoid paying DDT because capital gain tax liability was in the hand of shareholder. However now tax implications under both the methods stand at par so companies will have to consider all the factors whether to distribute income as dividend or buyback because in the both the cases they are liable to pay tax either as DDT or as buyback tax.