Capital gains tax on share buybacks is good for small investors. Here’s why
Last Update Date: 06-10-2026
Published by India Today
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that the old rules often left retail investors with a capital loss they could not use, and said long-term holders will generally pay less tax and can treat buybacks much like market sales.
More of Abhishek's views on money management
The article explains the Budget 2026 change that taxes share buyback proceeds as capital gains instead of dividend income. It sets out how the earlier system taxed the full payout at slab rates, how the new rule taxes only the profit, and the extra tax promoters now pay to curb misuse.
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Capital gains tax on share buybacks is good for small investors. Here’s why