Infosys Buyback Record Date 2025: Know The Tax Rules Before Submitting Your Shares
Infosys Buyback Record Date 2025: Know The Tax Rules Before Submitting Your Shares
Infosys Buyback Record Date 2025: IT firm Infosys has already announced Friday, November 14, 2025, as the record date for its largest-ever share buyback at 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 to be eligible to participate in the buyback.
A buyback (or share repurchase) is when a company buys its own shares from existing shareholders, usually at a price higher than the market rate.
“The Board of Directors of the company at their meeting held on September 11, 2025, has considered and approved a proposal to buyback equity shares for an amount of Rs 18,000 crore at a price of Rs 1,800 per equity share," Infosys said in an exchange filing previously.
If you want to participate in an Infosys buyback, here's the step-by-step process:
1. Check the record date and ensure your Infosys shares are in your demat by that date. It is important to note that the record date has not been announced yet.
2. Read the Letter of Offer (LoF) to note buyback price, window, size and entitlement.
3. Check your entitlement (how many shares you can tender) and decide quantity (you may oversubscribe).
4. Log in to your broker and go to Corporate Actions → Buyback, select the Infosys buyback and enter quantity.
5. Or submit the Tender Form to your broker/registrar offline if you prefer paper submission.
6. Broker/DP will block/debit the tendered shares from your demat (you don't pay money).
7. After the window closes, check the acceptance/scale-down announcement (pro rata if oversubscribed). The Infosys buyback represents up to 2.41 per cent of the company's total paid-up equity share capital.
8. Accepted shares are debited and proceeds credited to your bank account via your DP (typically within a week or two).
Before October 1, 2024, the tax on buybacks used to be paid by the company on the income distributed. However, as part of the Union Budget 2024 announcement, any buyback after October 1, 2024, will be taxed in the hands of investors as deemed dividend under the ‘income from other sources'.
“As per the amendment in Budget 2024, tax on any buyback made after 1st October, 2024 will not be applicable in the hands of the Company. However, the tax will be payable by the recipient shareholder on the total amount received from the buyback as deemed dividend in accordance with the newly inserted provision of Section 2(22)(f)," Cleartax said in its blog.
So, the Infosys buyback will be taxed in the hands of investors as a dividend income under the head ‘income from other sources' at the applicable income tax slab.
However, there is a provision called “offsetting cost of acquisition", where investors can offset (subtract) the cost from your sale value to find out how much you actually gained or lost while dealing with securities.
It works differently for those purchased before and after February 01, 2018.
If shares were bought before February 1, 2018 →
The “grandfathering" rule under Section 112A applies.
The cost of acquisition is adjusted using a special formula so that past gains (before 31 Jan 2018) are not taxed again.
The cost of acquisition will be the higher of:
(a) the actual purchase price, or
(b) the lower of:
(i) fair market value (FMV) on 31 January 2018, or
(ii) sale price.
This is basically “offsetting" the FMV with the sale value — to protect old gains from being taxed again.
Let's understand with an illustration. Mr. Janak bought 100 shares of X Ltd. at Rs 1,400 each in Jan 2016, sold them in Aug 2024 at Rs 2,600 each.
The highest price on 31 Jan 2018 was Rs 1,800.
Now, cost of acquisition = higher of:
Actual cost = Rs 1,40,000
Lower of (FMV Rs 1,80,000 or Sale price Rs 2,60,000) = Rs 1,80,000
So, Cost of Acquisition = Rs 1,80,000
Then,
Sale value = Rs 2,60,000
Cost of acquisition = Rs 1,80,000
Capital Gain = Rs 80,000
Here, Rs 1,80,000 is “offset" as the cost, and only Rs 80,000 is treated as taxable long-term capital gain (LTCG).
Shares bought on or after February 1, 2018
Once this “grandfathering" cutoff passed, the normal rule of capital gains calculation applies —
no special FMV adjustment, no offsetting with Jan 31, 2018 price.
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Here's how it works:
Capital Gain (or Loss) = Sale Price – Cost of Acquisition – Expenses (like brokerage)
Source: News18
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