Major Indian companies are rushing to announce share buybacks following Budget 2026's tax reform. Wipro announced a fifteen thousand crore rupee buyback in April, followed by Bajaj Auto's fifty-six hundred crore rupee buyback in May. The catalyst is clear: the government changed how buyback gains are taxed. Starting April first, shareholders now pay capital gains tax only on actual profits rather than the entire proceeds being taxed as dividends at slab rates. This makes buybacks significantly more attractive for investors. Short-term gains face twenty percent taxation while long-term gains receive preferential treatment. Companies are capitalizing on this window to return capital to shareholders at premium prices, with Wipro offering twenty percent above market price and Bajaj Auto offering fifteen percent premium.
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