Infosys share buyback opens: Eligibility, tax impact & analyst takeaways
The IT major plans to repurchase 10 crore fully paid-up equity shares of face value Rs 5 each, representing up to 2.41 per cent of its total paid-up equity share capital. The buyback price has been set at Rs 1,800 per share.
- Nov 20, 2025,
- Updated Nov 20, 2025 12:24 PM IST
Infosys Ltd's Rs 18,000 crore share buyback opened for subscription on Thursday (November 20) and will remain open until November 26. The company had set November 14 as the record date to determine eligible shareholders.
The IT major plans to repurchase 10 crore fully paid-up equity shares of face value Rs 5 each, representing up to 2.41 per cent of its total paid-up equity share capital. The buyback price has been set at Rs 1,800 per share.
The buyback is divided into two segments: a reserved category for small shareholders and a general category. A small shareholder is one holding shares worth not more than Rs 2,00,000 as on the record date.
Infosys has 25,85,684 small shareholders. The reserved portion will be 15 per cent of the shares proposed to be bought back, or the entitlement of small shareholders, whichever is higher.
Promoters and the promoter group, including Nandan M Nilekani and Sudha Murty, will not participate in the buyback. They collectively held a 13.05 per cent stake in the company on the buyback announcement date.
Taxation rules
Buyback proceeds are now classified as "income from other sources" and taxed at the investor's applicable income-tax (I-T) slab rate, rather than under capital gains. The entire amount received in the buyback is taxable.
Earlier, companies paid a 20 per cent buyback tax and the income was exempt for shareholders, but this provision has been withdrawn.
If shares are sold through the stock exchange instead:
• Long-term capital gains (holding period above 12 months) are taxed at 12.5 per cent (including surcharge and cess).
• Short-term capital gains are taxed at 20 per cent, irrespective of the I-T slab.
The more tax-efficient option depends on the investor’s income level.
Tendering shares may be beneficial if total taxable income, including buyback receipts, falls within the rebate limits:
• New tax regime: rebate applies up to Rs 12 lakh of total income.
• Old tax regime: rebate applies up to Rs 5 lakh of total income.
Under the revised rules, the cost of acquisition cannot be reduced from buyback income. It is instead treated as a capital loss:
• Short-term capital loss (STCL) can be set off against both STCG and LTCG.
• Long-term capital loss (LTCL) can be set off only against LTCG.
Any remaining losses may be carried forward for eight assessment years, subject to timely filing of the I-T return.
Infosys will deduct 10 per cent TDS on buyback proceeds exceeding Rs 1,000. Investors in lower tax slabs may eventually claim refunds, but the TDS outgo could affect short-term liquidity.
Entitlement ratios
For small shareholders, the entitlement ratio is 2:11, meaning investors can tender 2 shares for every 11 held on the record date. For the general category, the entitlement ratio is 17:706.
Infosys shares were last seen trading 0.33 per cent lower at Rs 1,536.15 in Thursday's trade. Kiran Jani, Head of Technical Research at Jainam Broking, noted that the stock has repeatedly taken support around Rs 1,400 after facing resistance near Rs 2,000 earlier.
"Rs 1,400 is a crucial support zone. At current prices, one can consider long positions with a strict stop-loss below Rs 1,400," the market expert told Business Today. He expects the stock to potentially move towards Rs 1,800–1,900 by February-March 2026.
Infosys Ltd's Rs 18,000 crore share buyback opened for subscription on Thursday (November 20) and will remain open until November 26. The company had set November 14 as the record date to determine eligible shareholders.
The IT major plans to repurchase 10 crore fully paid-up equity shares of face value Rs 5 each, representing up to 2.41 per cent of its total paid-up equity share capital. The buyback price has been set at Rs 1,800 per share.
The buyback is divided into two segments: a reserved category for small shareholders and a general category. A small shareholder is one holding shares worth not more than Rs 2,00,000 as on the record date.
Infosys has 25,85,684 small shareholders. The reserved portion will be 15 per cent of the shares proposed to be bought back, or the entitlement of small shareholders, whichever is higher.
Promoters and the promoter group, including Nandan M Nilekani and Sudha Murty, will not participate in the buyback. They collectively held a 13.05 per cent stake in the company on the buyback announcement date.
Taxation rules
Buyback proceeds are now classified as "income from other sources" and taxed at the investor's applicable income-tax (I-T) slab rate, rather than under capital gains. The entire amount received in the buyback is taxable.
Earlier, companies paid a 20 per cent buyback tax and the income was exempt for shareholders, but this provision has been withdrawn.
If shares are sold through the stock exchange instead:
• Long-term capital gains (holding period above 12 months) are taxed at 12.5 per cent (including surcharge and cess).
• Short-term capital gains are taxed at 20 per cent, irrespective of the I-T slab.
The more tax-efficient option depends on the investor’s income level.
Tendering shares may be beneficial if total taxable income, including buyback receipts, falls within the rebate limits:
• New tax regime: rebate applies up to Rs 12 lakh of total income.
• Old tax regime: rebate applies up to Rs 5 lakh of total income.
Under the revised rules, the cost of acquisition cannot be reduced from buyback income. It is instead treated as a capital loss:
• Short-term capital loss (STCL) can be set off against both STCG and LTCG.
• Long-term capital loss (LTCL) can be set off only against LTCG.
Any remaining losses may be carried forward for eight assessment years, subject to timely filing of the I-T return.
Infosys will deduct 10 per cent TDS on buyback proceeds exceeding Rs 1,000. Investors in lower tax slabs may eventually claim refunds, but the TDS outgo could affect short-term liquidity.
Entitlement ratios
For small shareholders, the entitlement ratio is 2:11, meaning investors can tender 2 shares for every 11 held on the record date. For the general category, the entitlement ratio is 17:706.
Infosys shares were last seen trading 0.33 per cent lower at Rs 1,536.15 in Thursday's trade. Kiran Jani, Head of Technical Research at Jainam Broking, noted that the stock has repeatedly taken support around Rs 1,400 after facing resistance near Rs 2,000 earlier.
"Rs 1,400 is a crucial support zone. At current prices, one can consider long positions with a strict stop-loss below Rs 1,400," the market expert told Business Today. He expects the stock to potentially move towards Rs 1,800–1,900 by February-March 2026.