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Infosys share buyback: From income tax implications to eligibility, key things to consider

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By Sangeeta Ojha

4 min read | Updated on November 19, 2025, 10:46 IST

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SUMMARY

The Infosys buyback presents a favourable profit opportunity for most investors, particularly for those holding a moderate number of shares, though the final profitability is still dependent on the actual acceptance ratio and the individual shareholder's tax liability.

infosys share buyback

Infosys share buyback: You must hold the shares in your demat account by the record date (November 14, 2025) to participate. | Image: Shutterstock

Infosys Ltd has fixed November 14 as the record date for its share buyback. They offered a price of Rs 1800 per equity share, amounting to Rs 18,000 crore. It means shareholders will need to hold Infosys shares on the record date ( November 14, 2025) to be eligible to participate in the buyback.

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"Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Regulation 9(i) of SEBI (Buy-Back of Securities) Regulations, 2018, the company has fixed Friday, November 14, 2025 as the Record Date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the buyback," Infy informed in a BSE exchange filing on November 6.

Infosys buyback: What experts say

The Infosys buyback presents a favourable profit opportunity for most investors, particularly for those holding a moderate number of shares, though the final profitability is still dependent on the actual acceptance ratio and the individual shareholder's tax liability.

“In India, not everyone falls under the ₹24-lakh tax slab. In any case, Infosys’ buyback looks like a good opportunity. For instance, if someone holds around 1,000 shares and purchases 200 more now, even after accounting for the tax implications, they are likely to remain in profit post-buyback," said Pankaj Mathpal.

However, those looking to participate should wait to see the actual buyback ratio, which will determine how many of their shares are accepted. Once the ratio is announced, investors will have more clarity, added Mathpal.

"Given that the offered price of ₹1,800 is approximately ₹300 higher than the current market price, holding the shares is advisable," stated Anuj Gupta, Director at Ya Wealth Global.

"Buyback is one of the positive signs of any listed company, as the company is willing to buyback its own shares. So, ideally one should not tender the share in buyback of any company. Also, now tax liability is not favorable for buyback. So, it is recommended to hold share of any company offering a buyback option," said Ronak Morjaria, Partner at ValueCurve Financial Services.

Also Read | Infosys buyback: Tax calculation and rules explained with a 500-share example

Infosys sharebuyback: Key considerations for investors

Eligibility: You must hold the shares in your Demat account by the Record Date (November 14, 2025) to participate.
Acceptance ratio: Since the buyback is for only 2.41% of shares, not all shares tendered will be accepted. The acceptance ratio determines the actual number of your shares the company will buy back. The retail segment usually gets a higher ratio than the general segment.
Income tax implications: The amount received by the shareholder from a buyback is generally treated as "deemed dividend" under Section 2(22)(f) of the Income Tax Act (post the 2024 amendment) and is subject to the shareholder's applicable income tax slab.

Investors should consult a tax advisor regarding the tax treatment of the buyback proceeds and any potential capital loss.

Also Read: What if you do not participate in Infosys buyback and sell in open market
Tax laws previously made shareholder proceeds from share buybacks tax-exempt under Section 10, with the company paying a 20% tax on the utilised amount. This rule has been reversed.

"The money received by a shareholder in a buyback is treated entirely as a taxable dividend, subject to the individual's slab rate, with no deduction allowed for the shares' original cost," said Mumbai-based tax and investment expert Balwant Jain.

Jain points out that tendering shares remains tax-efficient only in specific, low-income scenarios where the Section 87A rebate can be claimed:

New income tax regime: The rebate applies if the total taxable income (including the buyback dividend) is below the Section 87A threshold, allowing the entire tax on the dividend to be rebated.
Old income tax regime: The rebate applies if the shares were held for less than 12 months (short-term capital gains) and the total income does not exceed ₹5 lakh.
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Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Securities mentioned are illustrative and not recommendations. Investors should do their own research or consult a registered financial advisor before making investment decisions.
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About The Author

sangeeta-ojha.webp
Sangeeta Ojha is a business and finance journalist with vast experience across leading media platforms, including Mint and India Today. Passionate about personal finance, she has built a reputation for covering a wide range of PF topics—from income tax and mutual funds to insurance, savings, and investing.

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