Schedule BBS – Details of tax on distributed income of a domestic company on buy back of shares

Schedule BBS in the ITR forms, specifically relevant for companies (e.g., in ITR-6), pertains to the details of tax on distributed income of a domestic company arising from the buy-back of its own shares.

Prior to October 1, 2024, the buy-back of shares by domestic companies was governed by Section 115QA, under which the company was liable to pay buy-back tax on the distributed income. This income was exempt in the hands of the shareholder under Section 10(34A).

Schedule BBS requires the company to furnish specific details related to this buy-back transaction and the tax payable thereon. This typically includes:

•The consideration paid by the company for the buy-back.

•The amount received by the company for the issue of such shares (the cost of acquisition for the company).

•The distributed income (the difference between the buy-back consideration and the issue price).

•The amount of tax payable on this distributed income at the prescribed rate.

•Details of payment of such tax.