Announcing yet another set of incentives to boost the economy, Finance Minister Nirmala Sitharaman said that listed companies which have announced buyback before July 5 (the Budget presentation day) will not be charged tax. The decision was immediately cheered by India Inc., especially IT companies that over the years have stepped up payout ratios and used a mix of dividend and share buybacks to return profits to the shareholders. Apart from Infosys, other IT companies such as TCS, Wipro and HCL technologies would also go ahead with their announced buyback programmes. Other companies such as Orbit Exports, Aurion Pro Solutions and Action Construction Equipments, Nava Bharat Ventures, GE Shipping could also explore the route that will not attract tax if announced before the July 5 cut-off date. The Budget had made it mandatory for listed companies to pay an additional tax at 20 per cent on share buybacks. The move, aimed at discouraging the practice of avoiding the dividend distribution tax, came into effect on July 5, 2019.