Blog
Login
Pursuant to stakeholder representations, Finance (No.2) 2024 has transformed the tax treatment of capital gains and buy back of shares. The government has tried to reduce the categories of various asset classes and bring uniformity & consistency in holding period and long term/short term capital gains tax rates. Responding to post budget representations, the indexation benefit was also restored at the enactment stage in a limited manner to ensure that long term capital gains tax burden of land or building or both on resident individuals/HUFs is not increased for assets acquired prior to July 23, 2024. The taxation of buyback of shares is restored in the hands of shareholders as a combination of dividend and capital gains instead of buyback distribution tax in the hands of the company.
The transformative changes in capital gains and buyback taxation for both residents and non-residents requires an in-depth evaluation for both tax compliance and future tax planning. In view of the above, Bombay Chamber organised a half-day physical seminar where tax experts from Deloitte Haskins & Sells LLP, viz. Hiren Shah and Akhil Muchhala discussed the aspects with practical case studies on the new Capital Gains tax regime and new Buyback tax regime. The session was attended by good participation and it was very interactive and very informative.
