In the last few years there has been a consistent debate on how should companies in India reward shareholders. Broadly, there are two ways of rewarding shareholders viz. dividends and share buybacks. After the Union Budget 2016 made dividends above Rs.1 million taxable at 10% in the hands of the investors, there has been a major shift towards buybacks. At least, large companies with a cash pile prefer to reward shareholders with buyback of shares rather than through dividends. For shareholders looking at regular income, of course, the dividends are more useful. But it needs to be remembered that dividends will entail multiple levels of taxation viz. at the level of the income statement then at the level of DDT and finally at the hands of the investor.