Industry Newsshare buybackscorporate taxit services
Indian IT Firms Prefer Buybacks Over Dividends
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Sushovan Nayak of Anand Rathi Institutional told ET Now that India’s leading IT services firms will likely continue favoring share buybacks over higher dividends after Union Budget tax changes. He said treating buybacks as capital gains—taxed at 12.5% or 20% depending on holding period—and buyback norms effective April 1 improves post-tax outcomes, making buybacks attractive for cash-rich firms such as Wipro, LTIM, TCS, Infosys and HCLTech.
Scoring Rationale
Industry-level tax change raises buyback attractiveness, but assessment relies mainly on one analyst's commentary rather than broad data.
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