Archive · 14 Nov 2025
Infosys Announces Largest Ever Share Buyback, Nithin Kamath Explains Tax Implications
Infosys, a big tech company, is buying back its own shares from investors.
This is their biggest buyback ever, worth a lot of money.
If you owned their shares on November 14th, you can sell them back to Infosys for a higher price than they are currently selling for on the stock market.
Think of it like the company offering to buy your toy for more than you could sell it for to a friend.
When you sell your shares back, the money you get is taxed like your income from a job.
However, the amount you originally paid for those shares is considered a loss for tax purposes.
This means you can use that loss to lower the taxes you owe on other things you might have sold for a profit.
So, some people might sell to get cash quickly, while others might see it as a way to save on taxes for other investments.
Infosys has launched its largest-ever share buyback, valued at Rs 18,000 crore, at a price of Rs 1,800 per share.
Shareholders who held Infosys stock on or before the record date of November 14, 2025, are eligible to participate.
The Rs 1,800 buyback price represents an over 18% premium compared to Infosys' last closing stock price.
Proceeds received from the buyback are taxed as income at the investor's applicable slab rate.
Participating in the buyback creates a capital loss on the tendered shares, which can be used to offset other capital gains for tax benefits.
- Who
- Infosys shareholders
- What
- Participating in Infosys' Rs 18,000 crore share buyback program at Rs 1,800 per share.
- When
- The record date for eligibility was November 14, 2025. The buyback was launched on Friday, November 14, 2025.
- Where
- Shares held in demat accounts on the record date are eligible. The buyback process would typically be managed through stock exchanges and brokers.
- Why
- To offer shareholders an opportunity to sell shares at a premium and to provide a tax strategy through the creation of capital losses that can offset other capital gains.
Investor Seeking Immediate Gain and Liquidity
Investor Focused on Tax Optimization and Long-Term Holding
Profit and Premium
Investor Seeking Immediate Gain and Liquidity
The buyback price of Rs 1,800 offers an over 18% premium to the last closing price, attracting investors looking for a quick profit and immediate liquidity.
Investor Focused on Tax Optimization and Long-Term Holding
While the premium is attractive, investors focused on long-term growth might weigh this against the tax implications and potential for continued capital appreciation by holding the stock.
Tax Treatment of Payout
Investor Seeking Immediate Gain and Liquidity
For investors needing immediate cash, the payout can be utilized directly, despite the tax on this amount.
Investor Focused on Tax Optimization and Long-Term Holding
The payout is taxed as income at the individual's applicable slab rate, which can reduce the net benefit for higher earners. This is treated similarly to dividend income.
Capital Loss Utilization
Investor Seeking Immediate Gain and Liquidity
Investors might not prioritize utilizing the capital loss if their primary goal is immediate cash or if they have no other capital gains to offset.
Investor Focused on Tax Optimization and Long-Term Holding
The buyback creates a capital loss (short-term if held less than a year, long-term if held more than a year) on the tendered shares, which can be strategically used to offset other capital gains, thus reducing overall tax liability.
- Company
- Infosys
- Buyback Type
- Tender offer
- Buyback Price
- Rs 1,800 per share
- Premium to Closing Price
- Over 18%
- Record Date
- November 14, 2025
- Total Buyback Value
- Rs 18,000 crore
- Shares to Repurchase
- Up to 10 crore equity shares (approx. 2.41% of paid-up equity)
- Reservation for Small Investors
- 15%
- Tax Treatment of Payout
- Treated as income from other sources, taxed at applicable slab rate (like dividend).
- Capital Loss Creation
- Entire investment value considered as capital loss (short-term or long-term depending on holding period).
Sources
Nithin Kamath breaks down buyback taxation as Infosys announces ₹18,000 crore record plan
Infosys Buyback record date tomorrow: Nithin Kamath explains Rs 1,800 offer and tax impact
Infosys share buyback: Should you sell or hold? Strategies & opportunities
