Tax on distributed income on buyback of shares

Companies are liable to pay additional income tax at 20% on distributed income (buyback price minus issue price) when buying back shares from shareholders. Shareholders do not pay tax separately.

Key provisions

• Companies are liable to pay additional income tax at 20% on distributed income (buyback price minus issue price) when buying back shares from shareholders. Shareholders do not pay tax separately.

Use via API

curl https://api.thynktax.com/v1/tax-law/sections/by-2025-ref/230

{
  "act_2025_ref": "230",
  "old_reference": "Section 115QA, Income Tax Act 1961",
  "title": "Tax on distributed income on buyback of shares",
  "category": "Section",
  "limit_or_rate": "-",
  "applicable_to": "-",
  "effective_from": "2026-04-01"
}