Infosys Buyback: Investor Tax Implications Explained

Infosys is buying back its own shares.

Shareholders can sell shares back to the company at ₹1,800 each.

The tax rules changed in October 2024.

Now, the tax burden is on the shareholder, treated as dividend income.

The company withholds 10% tax upfront, but shareholders may owe more.

The amount received is taxed according to the income tax bracket.

Investors must calculate whether the premium is worth the tax implications, since the amount is treated as "Other Income" Investors need to assess the net return carefully.