Under section 115-Q of the Income Tax Act, 1961, a buyback tax at the rate of 20% is levied on distributed income arising out of a buyback of unlisted shares of a company. The Finance Act, 2016, amended the definition of “distributed income” (with effect from 1 June) to mean the consideration paid by a company on a buyback of shares as reduced by the amount which was received by the company for the issue of such shares, determined in the manner prescribed.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员。
The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bangalore, Singapore, Silicon Valley and Munich. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.