The Lok Sabha on Wednesday passed the Finance Bill, 2026, with 32 amendments including a 12% surcharge on capital gains from buybacks for individual and corporate shareholders that could make buybacks more expensive. The amendments to the Finance Bill will now be passed by the Rajya Sabha.
The flat 12% surcharge is expected to substantially increase the tax outgo for taxpayers as at present there is either nil surcharge on taxable income up to Rs 50 lakh and a 10% surcharge on taxable income between Rs 50 lakh and Rs 1 crore.
