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Should you accept a buyback offer for your shares? Here how to evaluate

Last week, Tata Consultancy Services (TCS) announced the biggest buyback in the Indian capital market at Rs. 16,000 crore. Other IT companies are likely to follow suit. Reportedly, Infosys is likely to come up with an even bigger buyback offer than TCS of Rs. 16,750 crore in April. But should you participate? 

Understand the tax implications 
Your tax liability would depend on how the buyback offer is taking place in the market. There are two methods: direct buyback from shareholders (off-market deals) and buyback through stock exchange mechanism (market deals). 

“For buybacks that are not conducted through stock exchanges, that is, no securities transaction tax (STT) is paid, the long-term capital gains become taxable,” says Kuldip Kumar, Partner and Leader, Persona .. 

 

A billion Indian identities at risk as Modi government widens digital reach

Shivam Shankar Singh woke last month to an e-mail from an Indian government department. It had a name, address, mobile phone number and bank account with a code for money transfers and investments made in a dairy farm. None of the details were his. 

The e-mail contained details submitted to a program that collects personal and biometric data, and was meant for someone from the eastern state of Bihar. Singh, a polling campaign manager for Prime Minister Narendra Modi’s Bharatiya Janat .. 

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