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12% surcharge on share buyback gains now hits promoters as tax department issues clarification
Economy
Published on 24 April 2026
Promoters face a new 12% surcharge twist
The Income Tax Department has clarified that capital gains from share buybacks will attract a new 12% surcharge for promoters, introduced under the Finance Bill 2026. For non-promoter shareholders, the surcharge treatment remains tied to their normal income-based rules. The clarification aims to standardize how buyback transactions are taxed across categories.
- Promoters now face a 12% surcharge on buyback capital gains
- The change is linked to Finance Bill 2026 provisions
- Non-promoters continue with regular income-based surcharge rules
- Department says the move standardizes buyback tax treatment
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times