The first article examines the legal and tax framework governing buy-back of shares by companies, with particular focus on the procedural requirements under Section 68 of the Companies Act, 2013 and the significant shift in tax treatment brought about by recent legislative amendments. The discussion comprehensively outlines the approvals, disclosures, solvency requirements, statutory filings, and practical safeguards associated with a buy-back transaction, while also analysing the transition from the erstwhile company-level buy-back tax under Section 115QA of ITA, 1961 to the shareholder-level taxation introduced by the Finance Act (No.2), 2024, and the further rationalisation carried out under the Finance Act, 2026. The article thus provides a comparative understanding of how the tax incidence on buy-back distributions has evolved and the consequential implications for promoters as well as other shareholders.
The second article discusses the newly introduced Companies Compliance Facilitation Scheme, 2026 notified by the Ministry of Corporate Affairs as a one-time opportunity for defaulting companies to regularize long-pending annual statutory filings at substantially reduced additional fees. It analyses the scope of the scheme, the categories of forms covered, the concessions available for dormant status applications and strike-off filings, as well as the extent of immunity from prosecution and adjudication proceedings. The article further highlights the strategic choices now available to non-compliant companies—whether to restore compliance, shift to dormant status, or seek closure—and underscores the importance of timely action before stricter enforcement measures and disqualification consequences are triggered.
Lastly, CBDT circulars and notifications for the month of March 2026 has been included in this wiki to ensure continual updating with the latest regulatory developments.
Key Topics:
- Buback of Shares – Compliances under the Companies Act and Consequences under the Income Tax Act, Consequent upon the Amendment
- Companies Compliance Facilitation Scheme, 2026 (CCFS)
- CBDT circulars for the month of March 2026
- CBDT notifications for the month of March 2026
