Capital gains on share buyback get new surcharge twist; income tax dept explains what it means for you

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The Income Tax Department has clarified a new 12% surcharge on capital gains from share buybacks, specifically for promoters. This change, part of the Finance Bill 2026, impacts promoters' additional income tax. Non-promoter shareholders will continue to be taxed under normal surcharge provisions based on their income. This move standardizes tax treatment for buyback transactions.