Nifty IT index dips 2% as govt proposes to extend buyback tax to listed cos

The step is taken to discourage the practice of avoiding dividend distribution tax (DDT) through buyback of shares by listed companies

Shares of information technology (IT) companies were under pressure with Tata Consultancy Services (TCS), Infosys, Wipro and HCL Technologies down nearly 5 per cent on the National Stock Exchange (NSE) on Friday in intra-day trade, after Finance Minister Nirmala Sitharaman proposed to extend the buyback tax at 20 percent to listed companies as well.

At 02:33 pm; Nifty IT index was down 2.5 per cent, as compared to a 0.88 per cent decline in the benchmark Nifty 50 index.

Among the individual stocks, TCS slipped nearly 5 per cent to Rs 2,140 on the NSE in intra-day trade