Infosys buyback opens today: 8 smart checks before you tender shares; eligibility, tax rules and more

Only those who held Infosys shares on the record date (November 14, 2025) are eligible. If you purchased after this date, you cannot participate. Also note that Infosys is buying back only about 2.4 percent of its equity, which means acceptance ratios could be modest.

2. Understand the new tax rules 

The Rs 1,800 offer price carries a healthy premium, but the real test is what is left after tax.

Under the new rules, buyback proceeds are treated as “income from other sources”, taxed at your slab rate, not at capital gains rates. This is a major shift. If you fall in the 30% tax bracket, the hit is significant  and can wipe out much of the premium. So, here the entire buyback amount is taxable and not just the gain part.

Earlier, the company paid a 20 percent buyback tax (plus surcharge and cess) and the income was tax-exempt for you. That benefit no longer exists.

3. Compare with selling in the open market

If you sold the shares on the exchange instead of tendering:

• Long-term gains (holding > 12 months) are taxed at an effective 12.50 (surcharge + cess)%


• Short-term gains are taxed at 20%, irrespective of slab

Tendering is tax-efficient only if your total taxable income, including buyback proceeds, remains within the Section 87A rebate thresholds.

Tendering shares in a buyback is tax-efficient if your total taxable income (including the dividend from the buyback) does not exceed the threshold of Rs 12 lakh for the Section 87A rebate under the new tax regime. In that case, you can claim a rebate for the entire tax payable on the dividend.

Under the old regime, if your total income (including income taxable  at special rate)  does not exceed Rs 5 lakh, you can still claim the rebate for capital gains when sold in the open market.
Tax efficiency also improves if you have capital gains to set off against the capital loss arising from your cost of acquisition.

5. Your cost is not deductible

One of the trickiest changes: the purchase price of your shares is not deductible against the buyback income. Instead, your cost becomes a capital loss which can be set off against capital gains. In the current year short-term capital loss can be adjusted against both short-term and long-term capital gains. On the other hand long-term capital loss can only be adjusted against long-term capital gains. If losses remain unadjusted in the current year, they can be carried forward, provided the return is filed on time. STCL and LTCL can be carried forward for 8 years and set off only against eligible capital gains.

6. Be ready for TDS

Infosys will deduct TDS on the buyback proceeds. It is deducted at 10 percent on the amount above Rs 1,000. For those in lower tax slabs, this may lead to refunds later, affecting short-term cash flow. Ensure you factor this into your liquidity planning.

7. Promoters aren’t participating 

Infosys's promoters have chosen not to tender their shares, which slightly improves acceptance ratios for public shareholders. But it does not guarantee full acceptance, especially for larger shareholders. A key concern among long-term investors is that the amended tax rules offer no grandfathering for shares purchased prior to the rule change.

8. Know whether you qualify as a “small shareholder”

If your shareholding was Rs 2 lakh or less on the record date, you fall under the “small shareholder” category. This gives you a higher reserved quota, improving your chances of better acceptance.