New Delhi: About a dozen companies, including technology major Infosys, which have active buyback programs would benefit from the government's decision to not levy 20 percent buyback tax imposed in this year's Budget.
Announcing yet another set of incentives to boost the economy, Finance Minister Nirmala Sitharaman said that listed companies which have announced buyback before July 5 (the Budget presentation day) will not be charged tax. The decision was immediately cheered by India Inc., especially IT companies that over the years have stepped up payout ratios and used a mix of dividend and share buybacks to return profits to the shareholders.
Apart from Infosys, other IT companies such as TCS, Wipro and HCL technologies would also go ahead with their announced buyback programs. Moreover, other companies such as Orbit Exports, Aurion Pro Solutions, Action Construction Equipments, Nava Bharat Ventures, GE Shipping, and GEECEE Ventures could also explore the route that will not attract tax if announced before the July 5 cut-off date. (IANS)