06 Feb 2026


This is a link-enhanced version of an article that first appeared in the Economic Times
Article Overview:
The article notes that Budget 2026’s shift to taxing share buybacks purely as capital gains is expected to revive buyback activity among cash rich IT large caps, reversing the dampening effect of the 2024 tax changes.
Our Partner, Aditi Goyal, Tax, shared her perspective. Here’s what she had to say:
“It is expected that IT firms will continue with buybacks as a tool to return capital because it would allow them to return cash without triggering heavy tax burdens for most (particularly retail) shareholders.”
She further added, “IT firms often have limited high-return domestic investment opportunities relative to their accumulated cash….this may lead to companies considering approaches such as special dividends, or a hybrid approach of combining dividends with selective buybacks.”
Download PDF
Deal: Trilegal advises Iscon Balaji Foods on the INR 2,000 crores investment in it by Advent International and 360 ONE Alternates Asset Management (in multiple tranches)

Trilegal partners discuss how institutions depth, AI and cross-border agility are reshaping India’s legal market

Trilegal advised EPL on CCI approval for merger with Indovida India
Under the rules of the Bar Council of India, Trilegal is prohibited from soliciting work or advertising in any form or manner. By accessing this website, www.trilegal.com, you acknowledge that:
We prioritize your privacy. Before proceeding, we encourage you to read our privacy policy, which outlines the below, and terms of use to understand how we handle your data:
For more information, please read our terms of use and our privacy policy.