20% tax on buybacks by listed companies - Budget 2019-20 - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Saturday, July 06, 2019

20% tax on buybacks by listed companies - Budget 2019-20

The union government has proposed to introduce 20% tax on buybacks by listed companies. 

Until now, such provisions were applicable only to unlisted companies. 

The measure has been introduced by the government to curb the misuse of the buyback route by listed entities to avoid taxes.


The central government had introduced tax on dividends in 2007 and increased the levy in 2016 when it introduced additional dividend tax (ADT), which was applicable on investors who received dividends over ₹10 lakh. 

This prompted several companies to reduce their dividend payouts and instead go for share repurchases. 
The total buybacks increased from ₹1,834 crore in 2015-16 to ₹55,587 crore in 2018-19. 
20% tax on buybacks by listed companies - Budget 2019-20 Reviewed by Investment Guru on July 06, 2019 Rating: 5 The union government has proposed to introduce 20% tax on buybacks by listed companies.  Until now, such provisions were applicable only...

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