GlobiTax Innovate Accountants

16/05/2026

15/03/2026

Global tension. Local inflation. From war zones to our wallets.

13/03/2026

Global routes blocked, local prices shocked.

EconomyExplained Globitax

07/02/2026

Earlier, when a company did a buyback,
it had to pay buyback tax under Section 115QA at around 20%.

What went wrong next:

Then the rules changed.
Buyback was taxed in the hands of the shareholder
as deemed dividend —
on the entire buyback amount,
and cost of acquisition could not be set off.

The big 2026 change:

Now comes the real reform.

The government has rationalised buyback taxation.
Buyback gains will now be taxed as capital gains, not dividend.

Tax rates:

• Retail shareholders: 12.5% (long term)
• Private companies: 22%
• Promoters: 30%

Numerical example:

Let me give you a simple example.

Mr A is a retail shareholder.
Buyback amount: ₹3 lakhs
Cost of acquisition: ₹2 lakhs

Earlier, tax was 30% on ₹3 lakhs.

Now, only the gain of ₹1 lakh is taxed
and that too at 12.5%.

And if Mr A’s total long-term capital gains in the year are below ₹1.25 lakhs,
this tax can be completely exempt.

Company-side benefit:

How does the company benefit?

Even if earnings stay the same:
• EPS goes up
• ROE improves

And most importantly,
it sends a positive signal to the market
that management is confident about
the company’s future cash flows.

That’s why this reform is a true win-win,
for companies, shareholders, and capital allocation in India.

06/02/2026

WHY buyback rationalisation was needed?

“The most interesting part of the Union Budget 2026 is the rationalisation of buyback taxation in India.”

Flow:

Let’s understand why this was even necessary.

After corporate tax was rationalised in 2019, a lot of Indian companies started generating huge free reserves.

Now when a company has surplus cash, it has two choices:
retain it… or distribute it.

Distribution choices:

If it wants to distribute, again there are two options:
Dividend or Buyback.

The problem earlier:

When a company pays dividend, it gets added to the shareholder’s income
and is taxed at around 30%.

When a company does a buyback, that also became taxable in the hands of shareholders.

And this is where the problem started.

Transition to reform:

The tax structure had made capital distribution inefficient.

That’s why the government changed the dynamics.

The new buyback taxation aims to create a win-win for both
the company and the shareholder.

CTA:

Follow my next reel to understand how exactly this works with numbers.

21/01/2026

India pays the SAME tax.
Yet global tax drops.
No tax evasion.
No India tax loss.
Just smarter structuring.

➡️ Scenario 1: India ➝ US
Global tax: 21.4%
➡️ Scenario 2: India ➝ UAE ➝ US
India tax: unchanged
Global tax: ~16%

📉 Same business
📉 Same total profit
📉 Lower global tax
Because where profit sits matters more than where sales happen.

⚠️ Requires:
✔ Proper transfer pricing
✔ Real substance
✔ Clean documentation
This is legal tax efficiency, not shortcuts.

👉 Follow for real-world tax & business structuring insights

TransferPricing ReelsForBusiness

18/01/2026

Dubai is quietly becoming a serious global finance base.

DIFC has now crossed 100+ hedge fund managers.
And 81 of them are billion-dollar managers — meaning they manage $1B+ of client money (AUM), not personal wealth.

Why this matters:
• Big funds move only where rules are clear and systems are trusted
• More funds in one place = more capital, more deals, more high-quality networks
• It also means higher standards, structure, reporting, compliance, clean books

For NRIs and Dubai business owners, this is a strong signal that Dubai’s ecosystem is maturing fast.

If you want, comment “DIFC” and I’ll share a simple checklist on what businesses should keep ready.

18/12/2025

UK is tightening the rope.
UAE is opening doors. 🌍
Wealth doesn’t “disappear”… it moves.
Are you moving with it, or staying behind?

22/11/2025

BREXIT reshaped more than borders — it reshaped tax landscapes.
From cross-border structuring to residency rules and business compliance, navigating the post-BREXIT era requires clarity and strategy.
Smart planning today ensures smoother global operations tomorrow.
✨ Think Global, Plan Smart.