Buyback of Shares
Companies Act buybacks and the dividend-style tax from October 2024
- 1TestLimits and solvency checked.
- 2ApproveResolutions and offer.
- 3CompletePayment, extinguishment and filings.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About Buyback of Shares
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
A company can buy back up to 25% of its paid-up capital and free reserves under Section 68 of the Companies Act — up to 10% with board approval and beyond that with a special resolution — provided its debt-to-equity ratio after the buyback is no more than 2:1. Since 1 October 2024, the whole buyback amount is taxed as dividend in the shareholder's hands at slab rates, and the cost of the shares bought back becomes a capital loss.
The 2024 change shifted the tax from the company to shareholders, which makes buybacks less attractive for high-slab shareholders and more nuanced to plan. The capital loss can offset other capital gains.
We test eligibility, model the tax for shareholders, and run the process — offer document, declarations, extinguishment and filings.
| Limit | 25% of paid-up capital + free reserves |
|---|---|
| Approvals | Board up to 10%; special resolution above |
| Debt-equity after buyback | ≤ 2:1 |
| Tax (from 1 Oct 2024) | Dividend in shareholder's hands; cost becomes capital loss |
| Filings | SH-8, SH-9, SH-11 and others |
Who this is for
Common scenarios where this service is a good fit.
- Companies returning surplus cash
- Companies consolidating shareholding
- Shareholders evaluating buyback offers
What you get
Clear deliverables so you know exactly what's included.
- Eligibility test
- Shareholder tax modelling
- Process and filings
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
Limits and solvency checked.
Resolutions and offer.
Payment, extinguishment and filings.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- Fixed quote on WhatsApp after a short look at your facts and documents.
- Government fees, if any, are paid at actuals and shown separately.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
Fee adjusted against our service fee if you go ahead within 30 days.
- Priority CA Call-backSkip the queue — a CA calls you within 30 minutes.₹255
- RecommendedCA Consultation (30 min)Talk one matter through properly with a CA.₹755
- In-depth CA Review (60 min)Documents reviewed before the call, written action plan after.₹1,155
Call-backs run Mon–Sat, 9 AM–6 PM IST. Booked outside these hours? We call you first thing the next working morning.
Compare the 3 plansFrequently asked questions
Answers to the most common questions we get.
Official sources
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
