Wipro has announced its biggest share buyback worth ₹15,000 crore, offering shareholders a premium exit option. According to reports from ABP Live, this comes at a time when India's tax rules around buybacks have just changed from April 1, 2026. These changes directly impact how investors and promoters are taxed when they participate in such offers.
From April 1, 2026, buybacks are once again taxed under capital gains instead of being treated as dividend income. As reported by Deccan Herald, earlier investors had to pay tax on the entire buyback amount as per their income tax slab, even if their actual profit was lower. Now, tax applies only to the actual gain, which is the difference between the buyback price and the purchase price. Long-term capital gains are taxed at 12.5% after an exemption of ₹1.25 lakh, while short-term gains on listed shares are taxed at 20%.
Promoters now face an additional tax layer under the new rules. According to ABP Live, the government has introduced a 'Special Additional Tax' to prevent tax advantages. Corporate promoters may pay around 22% tax, while non-corporate promoters could face close to 30%. For regular investors, the new regime is clearly more favourable as they are taxed only on real profits instead of the full payout.
Another important change is that investors can now deduct the cost of acquisition directly, instead of treating it as a capital loss. As reported by ABP Live, this makes the system simpler and more practical, especially for small investors who benefit from lower effective taxation. The revised rules aim to balance fairness between promoters and public shareholders while making buybacks more transparent and investor-friendly.
Wipro's stock is currently trading at ₹203.02, showing a 0.64% decline today, according to latest market data. The company has recorded a return of 5.16% over the past month, demonstrating strong performance despite recent volatility. The stock has seen a significant decline of -15.39% in returns over the last three months, highlighting ongoing market challenges. Trading volume reached 80,542,603 shares, outpacing the average weekly volume of 43,577,589 shares, indicating heightened investor interest in the buyback announcement.
