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Should you sell your shares or join Infosys's ₹1,800 buyback
Business
Infosys is offering to buy back its shares at ₹1,800 each—a 16.6% bump over the September 19 closing price of ₹1,544.
But here's the twist: from October 1, 2024, any money you get from this buyback will be taxed as a "deemed dividend," which could mean a bigger tax bill for many shareholders.
The bottom line is to crunch the numbers
If you're in a higher tax bracket, selling your shares on the open market might actually leave you with more after taxes—thanks to lower capital gains rates.
For smaller investors with lower incomes, the new rules may not hurt as much.
It's smart to compare your potential after-tax profit from both options before deciding whether to join the buyback or just sell your shares normally.