Buy back of securities, other than shares is a transfer for its holders
Sale Consideration : Amount received by a shareholder from the company.
Taxable : In the year, when such securities are purchased by the company.
Taxpoint :
In case of buy back of shares, any income or capital gain is exempt under section 10(34A) in the hands of shareholders.
Company itself liable to pay additional tax @20% (+surcharge + Cess) under section 115QA.
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