Is the buyback tax payable on issue to issue basis or on aggregate basis?
Shares tendered for buyback relate to separate issues and therefore the company needs to calculate the difference between buyback price and the issue price. Refer table below for my query.
| Nos | Issue Price |
Issue Amount |
Buyback Price |
Buyback Amount |
Taxable Amt | ||
| Issue 1 | 5,000 | 100 | 5,00,000 | 150 | 7,50,000 | 2,50,000 | |
| Issue 2 | 5,000 | 200 | 10,00,000 | 150 | 7,50,000 | -2,50,000 | |
| 0 | Aggregate Not taxable | ||||||
| Nos | Issue Price |
Issue Amount |
Buyback Price |
Buyback Amount |
Taxable Amt | ||
| Issue 1 | 5,000 | 100 | 5,00,000 | 150 | 7,50,000 | 2,50,000 | Taxable |
| Issue 2 | 5,000 | 200 | 10,00,000 | 150 | 7,50,000 | Not taxable | |
| 2,50,000 | Net Taxable | ||||||
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