Section 10(34A)
Exemption to shareholders on buyback of shares
Quick Answer
Section 10(34A) (Exemption to shareholders on buyback of shares) has been deleted under the Direct Tax Code 2025, effective 1st April 2026.
Sec 10(34A)
Provision Summary
Income arising to a shareholder on account of buyback of shares by the company was exempt (as the company paid buyback tax under 115QA).
Deleted
Provision Summary
NA. Provision completely deleted. Buyback proceeds are now treated as dividend and taxed in the hands of the shareholder.
Key Changes & Highlights
- Shift of tax burden from the company back to the shareholder.
Related Sections
Frequently Asked Questions
What does Section 10(34A) of the Income Tax Act 1961 deal with?
Section 10(34A) (Exemption to shareholders on buyback of shares) Income arising to a shareholder on account of buyback of shares by the company was exempt (as the company paid buyback tax under 115QA).
Is Section 10(34A) of the ITA 1961 still applicable under DTC 2025?
Section 10(34A) has been deleted under the Direct Tax Code 2025. NA. Provision completely deleted. Buyback proceeds are now treated as dividend and taxed in the hands of the shareholder.
What is the status of Section 10(34A) under the new tax code?
Section 10(34A) is marked as "Deleted" with status "Deleted". Impact: High - Historical reference for corporate restructuring before the new Act.
What are the key changes to Section 10(34A) under DTC 2025?
Shift of tax burden from the company back to the shareholder.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
Need professional help on Section 10(34A)?
Compare trusted providers — both offer DTC 2025-ready CA services.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?