India imposes 12% surcharge on buyback capital gains

Tax increase reduces shareholder returns

Change
India introduced a flat 12% surcharge on capital gains from share buybacks effective April 1, 2026.
Why it matters
Buyback proceeds will be taxed at higher rates, requiring companies and investors to adjust transaction and tax planning.
Implications
  • Shareholders receive lower net returns — tax burden increases
  • Companies must revise buyback structures — compliance impact

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