{"id":13297,"date":"2025-09-16T22:27:57","date_gmt":"2025-09-16T22:27:57","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/16\/infosys-rs-18000-crore-buyback-explained-why-investors-face-a-higher-tax-outgo-markets-news\/"},"modified":"2025-09-16T22:27:57","modified_gmt":"2025-09-16T22:27:57","slug":"infosys-rs-18000-crore-buyback-explained-why-investors-face-a-higher-tax-outgo-markets-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/16\/infosys-rs-18000-crore-buyback-explained-why-investors-face-a-higher-tax-outgo-markets-news\/","title":{"rendered":"Infosys’ Rs 18,000 Crore Buyback Explained: Why Investors Face A Higher Tax Outgo | Markets News"},"content":{"rendered":"


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Infosys Share Buyback: Infosys is carrying out its largest-ever share buyback worth Rs 18,000 crore; Know impact of buyback on investors<\/h2>\n
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Infosys Share Buyback<\/p>\n<\/figure>\n

Infosys Share Buyback:<\/strong> Infosys is carrying out its largest-ever share buyback worth Rs 18,000 crore. India\u2019s second-largest IT services company plans to repurchase up to 10 crore shares, representing 2.41% of its paid-up capital, at Rs 1,800 per share. For context, Infosys shares closed at Rs 1,508.50 on September 15.<\/p>\n

If you are an Infosys shareholder considering tendering your shares, it\u2019s important to tread carefully. With new tax rules in place, buybacks now carry a significantly higher tax burden, particularly for investors in the higher income brackets.<\/p>\n

Why Shareholders Now Pay Higher Tax<\/h3>\n

The taxation framework for buybacks changed substantially on October 1, 2024. Under the revised rules, proceeds from a buyback are now treated as \u201cdeemed dividend” and taxed as income from other sources at the shareholder\u2019s applicable slab rate.<\/p>\n

Earlier, companies paid a 20% buyback tax (effectively about 23%), and the shareholder\u2019s gain from the buyback was fully exempt. Now, companies no longer pay this tax\u2014shareholders are directly taxed on the entire buyback proceeds. \u201cThe full buyback proceeds are considered as dividend income under Section 2(22)(f) and taxed at the shareholder\u2019s slab rate, which can be as high as 30%+ for high-income individuals,” explained Madhupam Krishna, SEBI-registered investment adviser and chief planner at WealthWisher Financial Planner and Advisors.<\/p>\n

Impact of Infosys Buyback on Investors<\/h3>\n

The entire buyback amount received will be treated as income and taxed at your slab rate. For example, if you bought shares at Rs 1,000 each and Infosys buys them back at Rs 1,800, then:<\/p>\n