Buyback taxed as capital gains, not dividends, to benefit high earners
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that investors who bought sovereign gold bonds on exchanges or through transfers will lose the maturity tax exemption, and said they should be ready to pay capital gains tax.
More of Abhishek's views on money management
The article explains a Budget 2026 proposal to tax share buyback proceeds as capital gains instead of dividend income, letting shareholders deduct their purchase cost. It also covers a change under which sovereign gold bonds keep their tax-free status at maturity only if bought at original issue and held to redemption.
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Buyback taxed as capital gains, not dividends, to benefit high earners