1. Where a shareholder receives any consideration from the company for purchase of Its own shares or other specified securities, it is a transfer chargeable under the head Capital Gains.
2. The capital gain is chargeable to tax in the previous year in which the shares or securities are purchased by the Company.
3. Capital Gains = Value of Consideration Received Less Cost of Acquisition or Indexed cost of acquisition.
4. In case of buy back of shares, there is no question of deemed dividend u/s 2(22) (d).