In July 2019, buyback tax of 20% was extended to all cos, including the listed ones
One of the normal principles followed in tax laws is that there is no double taxation of the same income. One exception to this is in relation to company profits, where most countries follow the classical system of dividend taxation, whereby the company’s profits are first taxed in the hands of the company, and the dividends are again taxed in the hands of the shareholders. Till the early 1990s, even partnership profits suffered double taxation, which was eliminated in 1993. Today, besides dividends, there is no double taxation for almost all investment incomes. An exception is the double taxation on buyback of shares of listed companies under the market route.