New Buyback Income Tax Rule: Why a 12% Surcharge Could Hit Your Returns

Share buybacks have long been a popular way for companies to return cash to shareholders while often delivering tax-efficient gains. However, a key amendment in the Finance Bill 2026 introduces a flat 12% surcharge on capital gains from share buybacks, effective from April 1, 2026 . This change could meaningfully reduce your post-tax returns , especially if your taxable income falls below ₹1 crore. Understanding the Shift in Buyback Taxation In recent years, buyback taxation in India has seen multiple overhauls. Previously, companies paid a buyback distribution tax. Later changes treated proceeds as dividends in shareholders' hands, taxed at slab rates. The Budget 2026 largely reverts to taxing buybacks as capital gains at the shareholder level. You now calculate gains as: Capital Gain = Buyback Price – Cost of Acquisition Long-Term Capital Gains (LTCG) (holding > 1 year for listed equity shares): Taxed at 12.5% (with indexation benefits where applicable). Short-Te...
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Seshaasai Technologies Secures Major 3-Year Contract with Leading PSU Bank for Debit Card Procurement and Personalization

 

Seshaasai by Noetic Brands on Dribbble

In a significant boost to India's evolving digital payments landscape, Seshaasai Technologies has clinched a prestigious 3-year contract with a prominent public sector bank (PSU bank). This deal, spanning from December 2025 to December 2028, focuses on debit card procurement and personalization, marking another milestone in the company's growing dominance in the payment solutions sector.

Key Highlights of the Seshaasai Technologies PSU Bank Contract Win

This latest achievement underscores Seshaasai's expertise in delivering secure and innovative card personalization services. Here's what makes this contract particularly noteworthy:

  • Contract Duration: A solid 3-year tenure running from December 2025 through December 2028, providing stable and predictable business for the company.
  • Enhanced Volumes: The agreement includes significantly higher debit card volumes, reflecting the bank's confidence in Seshaasai's scalable manufacturing capabilities.
  • Expanded Scope of Services: Beyond standard procurement, the contract broadens to include a wider range of personalization services, allowing for more customized and secure card offerings.
  • Introduction of New-Age Payment Solutions: The PSU bank plans to launch innovative payment offerings, such as advanced contactless and potentially premium options, powered by Seshaasai's cutting-edge technology.

Why This Contract Matters for Seshaasai Technologies

Seshaasai Technologies, a leader in smart card manufacturing and payment card personalization in India, continues to strengthen its position by partnering with major financial institutions. With facilities certified by global schemes like Visa, Mastercard, and RuPay, the company is well-equipped to handle high-volume, secure projects like this one.

The impact of this PSU bank contract win is undeniably positive:

  • Improved Revenue Visibility: Long-term contracts like this enhance financial stability and forecast accuracy.
  • Reinforced Market Leadership: It solidifies Seshaasai's role as a go-to provider for debit card personalization services among public sector banks.
  • Alignment with Digital India Growth: As India pushes towards cashless transactions, demand for reliable contactless debit cards and premium solutions is surging.

The Bigger Picture: Growth in Debit Card Personalization and Payment Solutions

India's payment ecosystem is rapidly transforming, with millions of new debit cards issued annually. Public sector banks play a pivotal role in this, serving vast customer bases across urban and rural areas. Partnerships like Seshaasai Technologies' latest contract award ensure banks can offer secure, modern personalized debit cards that meet evolving customer needs—from basic PVC cards to premium metal variants.

As the sector grows, companies excelling in card procurement, personalization, and innovative features will thrive. Seshaasai's track record of serving multiple PSU banks positions it perfectly for continued success.

This development not only highlights Seshaasai Technologies' strengths but also signals exciting advancements in India's banking and fintech space. Stay tuned for more updates on how such collaborations are shaping the future of digital payments!

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