New Income Tax Rule Alert! FM announces major change for shareholders in Budget 2024.
What’s Changing?
Income from buybacks will now be taxed as income for shareholders, starting FY25.
No More Exemption
Previously, income from share buybacks was exempt. Now, it will be taxed like dividends.
How It’s Taxed
Income from buybacks will be added to annual income and taxed as per the applicable tax slab
No Indexation Benefit
Shareholders cannot avail indexation benefits on this income.
Other Changes
STT on derivatives doubled LTCG tax increased to 12.5% STCG tax increased to 20%
What It Means for Investors
Consult with a certified tax expert to understand the impact on your investments.
Stay Informed
Keep up with the latest financial news to navigate these changes effectively.
Disclaimer
The views and recommendations above are those of individual analysts or broking companies, not My Gainn. We advise investors to check with certified experts before making any investment decisions.
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