New Delhi, March 26 -- The 12% flat surcharge under the new share buyback taxation regime introduced in this year's Finance Bill will apply only in the case of promoters, the Income Tax Department said on Thursday in a social media post.

This surcharge applies only to an "additional tax" levied on the capital gain.

This additional tax increases the effective tax rate on the consideration received for a buyback to 30% for promoters and 22% for promoter companies.

"One of the amendments carried out through government amendments to the Finance Bill, 2026, provides for a surcharge on additional income-tax payable by promoters on capital gains arising from buyback, in accordance with section 68 of the Companies Act, 2013. The surcharge has ...