Finance Bill Amendments: 12 Percent Surcharge Proposed on Capital Gains From Buybacks

The Lok Sabha cleared Finance Bill 2026 on Wednesday with clarity on the surcharge for the capital gains from the buybacks which only applies to promoters. Since the buybacks’ capital gains are now included in the finance bill’s recent revisions (as significant returns on investment), you will have to pay a 12% surcharge.

According to reports, the government proposed 32 revisions to the Finance Bill 2026 on Wednesday, which the House later passed. As per reports, the revised Finance Bill will be discussed in the Rajya Sabha on Friday.

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The Finance Bill 2026 has received a few important revisions that will have a direct impact on how investors conduct investments and engage with tax procedures beginning April 1, the start of the new fiscal year.

Finance Bill, 2026: Clarification on Amendment related to 12% Surcharge for Promoters in Buybacks One of the amendments carried out through Government amendments to the Finance Bill, 2026 provides for a surcharge on additional income-tax payable by promoters on capital gains… — Income Tax India (@IncomeTaxIndia) March 26, 2026

As per the X post shared by Income Tax India, it says:

A surcharge on additional income tax payable by promoters on capital gains resulting from buybacks in accordance with section 68 of the Companies Act, 2013, is provided for in one of the amendments made to the Finance Bill, 2026, through Government amendments.

1. The additional charge has been given at a rate of 12%.

2. It is clarified that section 69 of the Income tax Act, 2025 provides for tax rates only for additional income tax on promoters in respect of capital gains on such buyback.

3. As a result, the 12% rate will only be applied to the extra income tax that the promoters must pay on the capital gains that are described in section 69(2)(b).

4. In the instance of non-promoters, if applicable, the surcharge as per normal provisions would be applied to such capital gains.