With the record date for the Infosys buyback approaching, it’s useful to understand how buyback taxation works in India. Nithin Kamath, co-founder and CEO of Zerodha, explained the details. Infosys is undertaking an ₹18,000-crore buyback—the largest in India’s history alongside TCS in 2022—repurchasing up to 10 crore shares at ₹1,800 each. This price is a 16% premium over the current market rate of ₹1,550 and accounts for 2.41% of Infosys’ paid-up equity. The record date is Friday, 14 November 2025.
Only shareholders holding Infosys shares in their demat accounts by the end of the trading session on the record date are eligible. About 15% of the buyback is reserved for small shareholders with holdings under ₹2 lakh, typically improving acceptance for retail investors. Infosys promoters, including Narayana Murthy and Nandan Nilekani, are not participating, which could further raise the acceptance ratio. The buyback is conducted via the tender offer route, with the final acceptance ratio to be announced later.
For taxation, buyback proceeds are treated as “income from other sources” and taxed at your slab rate. The investment is treated as a capital loss—short-term if held under a year, long-term otherwise. Such capital losses can offset other capital gains, potentially reducing your overall tax liability.
