Budget 2026-27 | Why buyback taxation a victory for minority shareholders and a hurdle for promoters
Published on 02/02/2026 05:43 PM
Budget 2026-27 | Why buyback taxation a victory for minority shareholders and a hurdle for promotersWhile promoters may find the new tax rates less attractive than the pre-2024 era, the retail and institutional investor community will likely welcome the lower, more transparent capital gains rates, writes Vishal Hakani, Managing Director and M&A Tax Leader, Alvarez & Marsal India.By CNBCTV18February 2, 2026, 5:43:41 PM IST (Updated)The finance minister has introduced a major overhaul of the share buyback taxation framework. It is proposed that share buybacks will now be taxed as "capital gains", from the characterisation of “deemed dividend”, which was announced by the Finance Act, 2024.Continue Reading with CNBC-TV18 Access MembershipPriority Access and Networking: CNBC-TV18's flagship events Interaction with CNBC-TV18's journalists Webinars & LIVE Q&As with India Inc. Leaders Exclusive CNBC-TV18 studio & newsroom tours Premium business insights, expert opinions & analysis Curated lifestyle privileges & offers