Profit Loss calculation in TCS buyback

[srihari_raman]

Hi Team
Please help on how to calculate profit and Loss in TCS buy back offer. I am accumulating TCS shares for the past one year. The stocks I am entitled for buy back offer will be taken as per FIFO rule or something else ?

Thanks & Regards

[Meher_Smaran]

Hi @srihari_raman

The onus of tax obligation in the event of buyback is on the company and not on the individual.

@srihari_raman

buy back offer will be taken as per FIFO rule or something else ?

Thats right. FIFO method is considered for the computation of capital gains on the sale of shares.

This topic was earlier discussed below:

Taxation on Buyback after Bonus Issue

Say I have 14 shares @2250 for more than a year and got 7 shares as bonus (after 365 days since last buy date), post which the avg price went @1500. Consider, the stock is now trading @1250. The company announces buyback @1750. Though buybacks are not taxable at the investors side , I just wanted some clarity. So if I tender and say 5 shares gets accepted, from taxation perspective (and checking whether tendering makes sense), will it be a loss (1750 - 2250= -500) or will it be a profit (175…