How Share buybacks will be taxed from 1st Oct 2024
5 min read![How Share buybacks will be taxed from 1st Oct 2024 How Share buybacks will be taxed from 1st Oct 2024](https://i2.wp.com/freefincal.com/wp-content/uploads/2024/07/How-Share-buybacks-will-be-taxed-from-1st-Oct-2024.jpg?w=1024&resize=1024,0&ssl=1)
Share buybacks will be taxed as a dividend with the cost of acquistion set as as capital loss from 1st Oct 2024.Why was this done? The budget memorandum states, “Both dividend as well as buy-back are methods for the company to distribute accumulated reserves and thus ought to be treated similarly.”It further adds, “References have been received stating that pay-outs on buy-back of shares should be taxed in hands of recipients, in line with similar regime in place fortaxation of dividend”.This loss can be offset when there is a capital gain from equity. It can also be carried forward, 🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users! Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this! New Tool! => Track your mutual funds and stock investments with this Google Sheet! 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