It is proposed to amend Section 115QA to provide for:
-taxation of distributed income in case of buy back of shares by an unlisted company under any law relating to companies (currently it refers to only Companies Act 1956) and
-providing clarity on the method of determination of consideration received by the company at the time of issue of shares (including cases where shares are allotted for consideration other than cash)
Hence, buyback transactions, where the original allotments were made for consideration other than shares, like sweat equity, merger consideration, etc. would possibly be covered under this proposed rules.