"So from 1st April 26, if I go for a buyback and let's say the buyback price I'm getting is three lakh rupees and the cost of my that particular shares are two lakh rupees. So I have to pay capital gain only on one lakh and not only that that's consider that as a long-term I'm holding for more than 12 and a half months or 12 months and then I'm offering this for a buyback. So I I will pay 12.5% tax. Not only that you know that in my long-term capital gain I don't have to pay tax up to 1 lakh 25,000 per person per pan this is exemption exemption right so if I give you in this example 3 lakh rupees is a buyback value 2 lakh is my cost so one lakh is my gain on this buyback on that I will pay 12.5% but if the total gain during the year is less than 1.25 25 but is not X. M so again this is a win-win and it's a great change I would say though people are not anticipating how big it is you will see next financial year"
By Finance With Sharan | February 1, 2026 | Correct
From video
BUDGET 2026 EXPLAINED : What Changed for Investors, Traders & Taxes | Nirmala Sitharaman | FWS 94 00:17:23 - 00:18:18
Interpreted Prediction
From April 1, 2026, buybacks will be taxed more favorably for retail investors, with capital gains only on the profit portion (not the full buyback amount) at 12.5% for long-term holdings, and an exemption for gains up to 1.25 lakh per PAN. This change is expected to be significant in the next financial year.
AI Evaluation Notes
Evaluated on 2026-04-27
The prediction correctly identified the shift in Indian tax law effective April 1, 2026, where share buybacks are now taxed as capital gains on the profit portion rather than as dividends, including the 12.5% LTCG rate and the 1.25 lakh exemption.

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