A domestic listed company buys back its own shares from a resident shareholder in December 2025. In the shareholder's hands the buyback proceeds are:

1. For buyback by a domestic company (listed or unlisted), the entire sum received is treated as dividend under Income from Other Sources, with no deduction for any expense. 2. For section 46A, the consideration for the shares is then taken as Nil. 3. Nil consideration minus the cost of acquisition produces a capital loss equal to the cost — long-term or short-term by holding period — eligible for set-off and carry-forward. 4. Option C describes the pre-amendment regime where the company paid buyback tax; that exemption no longer produces this outcome, and options A and D wrongly keep the receipt within capital gains. _Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 4 Capital Gains, PDF p. 21_