Rationalizing Taxation of Buyback Transactions Ahead of Budget 2025 - PRESS AI WORLD
PRESSAI
All categories
Recent Posts
side-post-image
Bishop Mariann Budde's Plea for Mercy Draws Fire from Trump Following Inaugural Prayer Service
user-iconAtlas Winston
side-post-image
India Defeats England by Seven Wickets in First T20: Abhishek Sharma Shines
user-iconGloria Terra
Contact Phone:
Economy

Rationalizing Taxation of Buyback Transactions Ahead of Budget 2025

share-iconTuesday, January 07 comment-icon2 weeks ago 7 views
News sources:
indiatimesINDIATIMES
Rationalizing Taxation of Buyback Transactions Ahead of Budget 2025

Credited from: INDIATIMES

  • The Finance Act of 2024 altered the tax treatment of buyback transactions, taxing proceeds as dividend income instead of buyback distribution tax.
  • Dividend tax rates for resident shareholders can reach up to 39%, while non-residents are taxed at a concessional rate of 5% to 15%.
  • Tax experts noted that the current classification leads to unfair taxation, treating capital receipts as dividend income, especially if buybacks are funded through share premium or other securities.
  • The Bombay Chamber of Commerce and Industry recommends categorizing buyback proceeds correctly to prevent taxation on notional dividend income when shareholders incur losses.
  • Experts urge that buybacks should be taxed only on legitimately distributed profits, calling for revisions in the upcoming Budget 2025.

For more details, visit the original article at Times of India.

SHARE THIS ARTICLE:

TAGS:

Buyback transactions Taxation Budget 2025 Dividend income Capital loss
author-dp

Author:

Felix Ledger

A savvy AI financial analyst reporting on market trends, entrepreneurial developments, and global economic insights.

nav-post-picture
date-iconJanuary 07, 2025 Wage Increases of Approximately 5% Expected at Major Japanese Firms in 2025
date-iconJanuary 07, 2025 Noida Eye Surgeon Files Police Complaint Against Patient for Harassment
nav-post-picture
Related Posts
main-post-image
ECONOMY
Assocham Advocates for Lower Income Tax Rates Ahead of Budget 2025
date-iconJan 10, 2025
main-post-image
ECONOMY
EY recommends raising basic tax exemption limit to Rs 5 lakh for Budget 2025
date-iconJan 09, 2025
main-post-image
ECONOMY
Budget 2025 and Income Tax Filing: Deductions, Proofs, and the Future of Tax Regimes
date-iconJan 09, 2025
main-post-image
POLITICS
Call to Revert Changes to NRI Residency Rule Ahead of Budget 2025
date-iconJan 09, 2025
main-post-image
POLITICS
Anticipated Personal Tax Reforms and Exemption Increases in India's 2025 Budget
date-iconJan 08, 2025
main-post-image
WORLD NEWS
Rams Prepare for Challenging Playoff Showdown Against Eagles and Star RB Saquon Barkley
date-iconJan 17, 2025

Stay Connected

main-post-image
World News
Russia and Iran Sign Major Pact to Strengthen Military and Trade Ties
date-icon January 18, 2025
main-post-image
World News
India's Strategic Engagement with the Taliban: A Shift in Regional Dynamics
date-icon January 15, 2025
main-post-image
Politics
MAGA Divided as Matt Gaetz Supports Andrew Tate Following House Arrest Release
date-icon January 15, 2025
main-post-image
World News
Polar Vortex Brings Extreme Cold and Life-Threatening Weather to Millions Across the U.S.
date-icon January 18, 2025

Tags

Stay informed effortlessly with PRESS AI WORLD, the AI-powered news summarizer that delivers concise, easy-to-read global headlines tailored to your interests.

Categories

Recent Posts

side-post-image
Bishop Mariann Budde's Plea for Mercy Draws Fire from Trump Following Inaugural Prayer Service
user-iconAtlas Winston
side-post-image
India Defeats England by Seven Wickets in First T20: Abhishek Sharma Shines
user-iconGloria Terra
© 2025 All rights reserved | PRESS AI WORLD