Is profit on the sale of shares offered under a buyback exempt from tax?

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Yes. As per section 10(34A) of the Income Tax Act, profits on the sale of shares offered under a buyback scheme are exempt from tax for resident individuals. 

Section 10(34A) of the Income Tax Act

Income from the sale of buyback of shares by the company is exempted from income tax. The buyback of shares will be taxed in the hand of the company.