Is profit on the sale of shares offered under a buyback exempt from tax?

---

The buyback tax under Section 115QA (which was paid by the company) will be eliminated for listed companies on buybacks occurring on or after October 1, 2024.

• Buybacks before Oct 1, 2024: No tax for shareholders
• Buybacks on/after Oct 1, 2024: Shareholders will pay tax on the entire amount received, not just capital gains.
  The amount received from buybacks is considered as deemed dividends and taxed based on the slab rates. The cost of acquiring shares tendered in a buyback will be treated as a capital loss (either short term or long term) for shareholders, which can be offset against other capital gains or carried forward for up to 8 years.