Capital Gains Tax – If the extinguishment happens due to a buyback, shareholders pay capital gains tax on the difference between the buyback price and the original purchase price. Merger/Amalgamation…
For Physical Shares – The company destroys the physical share certificates and updates its records. For Demat Shares – The shares are debited from the shareholder’s demat account and marked…
No, once shares are extinguished, they cease to exist. However, a company may issue new shares separately through fresh allotment, rights issues, or bonus issues.
