Section 69 - Capital gains on purchase by company of its own shares or other specified securities
Company purchase of its own shares or specified securities is dealt with under the post-Finance Act, 2026 capital-gains framework; the former deemed-nil treatment linked to dividend taxation was replaced.
Reviewed by CA Nikhil Gupta · Updated 9 October 2026
Section 69 is presented using the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The general commencement date is 1 April 2026. Earlier years and saved proceedings may remain governed by the Income-tax Act, 1961 and the repeal/savings framework.
2-minute professional decode
Company purchase of its own shares or specified securities is dealt with under the post-Finance Act, 2026 capital-gains framework; the former deemed-nil treatment linked to dividend taxation was replaced.
Who should test this section?
Section 69 matters to investors, property owners, promoters, companies, firms and advisers where the transaction involves capital gains on purchase by company of its own shares or other specified securities; the charge, computation and relief steps should be separated.
Evidence to retain
The section 69 file should preserve acquisition and transfer instruments, valuation or stamp records, payment evidence, holding-period material and every document that supports the treatment of capital gains on purchase by company of its own shares or other specified securities.
1961 Act bridge
| Legacy provision | Legacy heading | Mapping |
|---|---|---|
| 46A | Capital gains on purchase by company of its own shares or other specified securities. | Renumbered / mapped |
The bridge is a research aid. Legacy case law carries over only after the current wording and transition rules are matched.
Rules and forms linked to this section
No provision-specific Rule was independently mapped from the current Rules register for this section. That does not mean the wider Rules are irrelevant.
Worked application
A company buys back shares from a promoter in Tax Year 2026-27. Compute the promoter’s capital gain and then test the Finance Act 2026 additional-tax table separately for short-term or long-term gains and promoter category.
Common mistake
For section 69, do not jump from sale proceeds to a capital-gain number: first identify the transfer/charging event, then consideration, cost, timing and any exemption or rollover condition relevant to capital gains on purchase by company of its own shares or other specified securities.
Compliance approach
Identify the statutory trigger for section 69, lock the relevant tax year, reconcile the facts to the operative sub-section, preserve the evidence trail and separately test every linked Rule, Form, Schedule and exception before finalising the return position.
Numeric / timing checkpoints in the operative text
- Finance Act 2026 promoter additional tax: short-term promoter gains - 2% for a domestic-company promoter and 10% for other promoters.
- Finance Act 2026 promoter additional tax: long-term promoter gains - 9.5% for a domestic-company promoter and 17.5% for other promoters.
- For an unlisted company, the section includes a promoter test covering a person holding directly or indirectly more than 10% of shareholding.
Related provisions
Current statutory text
Primary-source trail
- Consolidated Income-tax Act, 2025 (as amended by Finance Act, 2026) (official external source)
- Income Tax Department - Act/Rules/Forms hub (official external source)
- CBDT commencement material - Act operative from 1 April 2026 (official external source)
Source status: full Section 69 statutory text in the local source corpus; reconciled to the current consolidated Act control on 8 October 2026.