Buyback tax is paid by co (~23% including CESS) and is tax free in hands of shareholders. Dividends are taxed at normal tax rate for investors. Most large investors (including promoters) end up paying 40%+ on dividends, thats why a lot of companies now opt for buybacks as it has become a more tax efficient way of returning cash.
Investors’ contribution in building the business has been an absolute zero. Promoters are entitled to bearing the fruit of their own work, and please keep in mind promoters are the largest shareholders. Indian laws are anyway very favorable for minority shareholders, we should try to keep our expecations at an appropriate level.
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