Starting 1st April 2026, any money you make from a buyback is taxed as capital gains - just like selling shares on the market. 

Here's how it breaks down: 

• Held shares for more than 12 months? You pay 12.5% LTCG.
• Held for 12 months or less? That's 20% STCG. No exemption here.
• If you're a promoter, the tax bite is bigger, 30% for individuals and 22% for companies.

It is important to note that the first ₹1.25 lakh of total combined long-term capital gains (LTCG) in a financial year, including gains from listed share buybacks held over 12 months, is exempt from tax.