Capital gain tax on buyback of Birlasoft shares offered through tender offer route. I offered 100 shares of Birlsoft shares for buyback through tender offer route and out of which 25 were accepted. My broker M/s Motilal Oswal DP Id 12010900 have charged CG TAX on this buyback. Kindly confirm if CG tax is applicable on this buy back?
Ans: I understand that you have not done transaction through stock exchange and thus, STT is not paid in the given transactions. Accordingly, capital gain tax is applicable on buy back of shares of listed companies.
In case of short term capital gain, tax will be levied at slab rate and in case of long term capital gain, tax will be levied at 10%/20% (as applicable).