Expect IT outsourcing leaders with eye-popping cash on their balance sheets to announce buybacks.
After the budget reclassified the repurchase exercise as capital gains, lowering the tax outgo for investors, the $280-billion industry could return to its favourite mode of rewarding long-term shareholders, experts said.
“It is expected that IT firms will continue with buybacks as a tool to return capital because it would allow them to return cash without triggering heavy tax burdens for most (particularly retail) shareholders,” said Aditi Goyal,…
