{"id":12392,"date":"2025-09-13T06:01:07","date_gmt":"2025-09-13T06:01:07","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/13\/infosys-share-buyback-record-date-tax-rules-how-to-apply-everything-you-need-to-know-tax-news\/"},"modified":"2025-09-13T06:01:07","modified_gmt":"2025-09-13T06:01:07","slug":"infosys-share-buyback-record-date-tax-rules-how-to-apply-everything-you-need-to-know-tax-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/13\/infosys-share-buyback-record-date-tax-rules-how-to-apply-everything-you-need-to-know-tax-news\/","title":{"rendered":"Infosys Share Buyback: Record Date, Tax Rules, How To Apply; Everything You Need To Know | Tax News"},"content":{"rendered":"


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Infosys Share Buyback: The buyback will be taxed in the hands of investors as a dividend income under the head ‘income from other sources’ at the applicable income tax slab.<\/h2>\n
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Infosys Share Buyback: How Much Will Your Gains Be Taxed?<\/p>\n<\/figure>\n

Infosys Share Buyback:<\/strong> Infosys, the country\u2019s second-largest IT services company, has announced its largest-ever share buyback programme worth Rs 18,000 crore. The record buyback entails Infosys buying 10 crore fully paid-up equity shares of a face value of Rs 5 each, representing up to 2.41 per cent of the total paid-up equity share capital, at Rs 1,800 per share.<\/p>\n

\u201cThe Board of Directors of the company at their meeting held on September 11, 2025, has considered and approved a proposal to buyback equity shares for an amount of Rs 18,000 crore at a price of Rs 1,800 per equity share,” Infosys said in an exchange filing.<\/p>\n

Infosys Share Buyback: Record Date<\/strong><\/p>\n

The company has not yet finalised the record date for the share buyback. The opening and closing dates for tendering the shares for the buyback will also be announced later.<\/p>\n

Infosys Share Buyback: How Will Your Gains Be Taxed?<\/strong><\/p>\n

Shares of Infosys on Friday closed at Rs 1,525 apiece. However, the IT company has announced the buyback at Rs 1,800 apiece. So, suppose your shares are accepted under the buyback programme at the current price, you make a gain of Rs 275 per share. How will it be taxed?<\/p>\n

Before October 1, 2024, the tax on buybacks used to be paid by the company on the income distributed. However, as part of the Union Budget 2024 announcement, any buyback after October 1, 2024, will be taxed in the hands of investors as deemed dividend under the \u2018income from other sources\u2019.<\/p>\n

\u201cAs per the amendment in Budget 2024, tax on any buyback made after 1st October, 2024 will not be applicable in the hands of the Company. However, the tax will be payable by the recipient shareholder on the total amount received from the buyback as deemed dividend in accordance with the newly inserted provision of Section 2(22)(f),” Cleartax said in its blog.<\/p>\n

So, the Infosys buyback will be taxed in the hands of investors<\/strong> as a dividend income under the head \u2018income from other sources\u2019 at the applicable income tax slab. For instance, if you fall in the 20% tax bracket, the Rs 275 will be taxed at the rate of 20% (Rs 55 per share).<\/p>\n

It is important to note that shareholders cannot deduct the cost of acquisition of shares tendered in the buyback against this deemed dividend income.<\/p>\n

However, there is a concept of a notional capital loss: For computing capital gains, the \u2018consideration\u2019 received is treated as nil, meaning the cost you paid for those shares (acquisition cost) becomes a loss under capital gains head which:<\/p>\n