Nithin Kamath Explains Infosys’ Record ₹18,000 Crore Buyback Taxation
Zerodha CEO Nithin Kamath has detailed how investors can benefit from Infosys’ historic ₹18,000 crore share buyback and calculate their tax implications. The buyback, India’s largest ever, offers shareholders a significant premium opportunity.
Key Takeaways
- Infosys’ ₹18,000 crore buyback is the largest in Indian corporate history
- Record date for participation is November 14, 2025
- Buyback price of ₹1,800 represents 18% premium over current market price
- Tax treatment differs from regular capital gains
Eligibility and Record Date
Only shareholders holding Infosys shares in their demat accounts as of November 14, 2025, can participate in the buyback. Due to the T+1 settlement system, investors needed to purchase shares by market close on November 13 to be eligible.
“Infy (Infosys) is one of the most highly held stocks by investors, and the record date for their massive buyback is November 14th, the biggest buyback ever in India. That is, you can participate in the buyback if you hold the shares in your demat account as of November 14.”
Taxation Explained by Nithin Kamath
Kamath clarified the unique tax treatment of buyback proceeds. The amount received is taxed as income from other sources at the investor’s applicable slab rate, while the entire investment value is considered a capital loss.
“I think it is essential to understand how you will be taxed on this. If you participate in the buyback at ₹1,800 (current price is ~ ₹1,550), here’s the taxation: The money you receive from the buyback is considered income from other sources and is taxed at your applicable slab rate. And, the entire investment value is then considered as a capital loss.”
The capital loss classification depends on holding period: short-term if held less than one year, long-term if held longer.
Key Buyback Details
- Price: ₹1,800 per share (18% premium to November 10 closing)
- Size: Up to 10 crore equity shares (2.41% of paid-up capital)
- Reservation: 15% reserved for small investors
- Frequency: First buyback in three years
Kamath noted that the buyback becomes particularly attractive for investors who can offset these capital losses against other capital gains. Zerodha users can access detailed tax calculations through the platform’s Tax P&L reports.
