Overview of Infosys Share Buyback: The activity on Infosys shares has attracted attention, particularly after the announcement of a colossal ₹18,000 crore buyback by the Indian IT titan. The company has set the buyback price at ₹1,800 per share, an exciting 15% premium on the current market price of ₹1,575.
This has drawn investors’ attention, who are keenly analyzing whether to take part in this offer or not. The buyback offer will remain open until November 26, 2025, giving shareholders a limited window to make their decision. While the numbers are appealing, the excitement comes with a bit of strategy, tax considerations and financial planning must be done before participating. By holding Infosys shares, investors are not only betting on short-term market movements but also aligning with a blue-chip company while potentially unlocking value in a well-timed, intelligent manner, given the company’s strong fundamentals and steady growth track record.
Infosys Share Buyback: Income Tax Compliance On Buyback
Mumbai-based tax expert Balwant Jain explained the new rules:
- Before April 1, 2024: Companies paid 20% tax on buyback, while shareholders were exempt under Section 10.
- After April 1, 2024: Buyback proceeds are treated as deemed dividend, taxable at the individual’s slab rate.
Shareholders cannot deduct the original cost of acquisition from taxable buyback income.
Income Tax Rate On Infosys Share Buyback
- Under the new regime: Buyback income is added to total income and taxed at the applicable slab rate.
- Under the old regime:
- Long-term capital gains tax of 10% if the buyback occurs after one year.
- Short-term capital gains tax of 12.5% if within one year of acquisition.
Who Should Participate In The Infosys Buyback?
It is recommended by financial professionals that the matter of participation in the buyback of Infosys shares should be viewed through the prism of tax consequences under the new income tax regime.
Tax advisors say that participating in the buyback is the most tax-efficient option for investors whose total taxable income falls within the Section 87A rebate limits. Specifically, non-salaried individuals earning up to ₹12 lakh and salaried individuals earning up to ₹12.75 lakh in FY26 may qualify for a rebate on the dividend tax arising from the buyback.
Consequently, for those investors who qualify, the income from the sale of shares could be completely neutralized by the rebate, thus making the offer more appealing. It is recommended that the shareholders should consider the buyback proceeds as part of their total income for FY26 in order to check their eligibility and the tax impact to be netted off. This way, investors will be able to make a well-informed decision as to whether cashing in their Infosys shares is in sync with their financial planning as well as tax optimization strategies.
(With Inputs)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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