Infosys's ₹18,000cr buyback: Here's what new tax rules mean for you
Infosys is rolling out a huge ₹18,000 crore share buyback at ₹1,800 per share—a nice 15% bump over the current market price.
The window to participate is open until November 26, 2025.
But there's a catch: thanks to new tax rules from April 2024, any money you make from this buyback will now be taxed as dividend income at your personal income tax rate.
How the new tax changes affect your returns
Earlier, buyback gains were mostly tax-free for shareholders.
Now, as tax expert Balwant Jain explains, you can't deduct what you paid for the shares—though that cost can count as a capital loss to offset future gains for up to eight years.
Pankaj Mathpal also points out that if your total income qualifies under Section 87A, you might get a rebate.
So before jumping in, it's smart to check how these rules could impact what actually lands in your pocket.