Infosys Buyback Record Date 2025: Key Tax Rules to Know Before Tendering Shares

Infosys has announced its 2025 share buyback, setting the stage for investors to tender shares and potentially benefit from the tech major’s strong cash reserves. While the record date determines shareholder eligibility, understanding the tax implications before participating is equally crucial to avoid post-buyback surprises.

1. What Is a Buyback Record Date?

The record date is the cut-off day to determine which shareholders are eligible to participate in the buyback. Only investors whose names appear in Infosys’ register of members on this date can tender their shares. Those buying shares after the record date will not qualify for the offer.

2. How Section 115QA Shapes Tax Treatment

Under Section 115QA of the Income Tax Act, listed companies undertaking buybacks must pay a 20% tax (plus surcharge and cess) on the distributed income. This means the company bears the tax liability, and shareholders receive the buyback proceeds tax-free in their hands.

3. Capital Gains Still Apply in Certain Cases

Shareholders who sell their holdings before the record date through the stock exchange are subject to capital gains tax.Long-term gains (held over 12 months): 10% tax on profits exceeding ₹1 lakh annually.

Short-term gains: Taxed at 15%.
Thus, timing your transactions matters to optimize tax outcomes.

Also Read: Infosys Founders, Including Murthy and Nilekani, Skip Participation in ₹18,000-Crore Share Buyback | Republic World

4. How to Tender Shares in the Buyback

Eligible investors can tender their shares via brokers using the stock exchange platform during the buyback window. Once accepted, proceeds are directly credited to the shareholder’s linked bank or demat account. Maintaining accurate KYC and bank details helps ensure smooth processing.

5. Why Infosys Buybacks Matter for Investors

Infosys’ consistent buyback programs have been a strategic way to return surplus cash and enhance earnings per share. As the 2025 buyback approaches, investors should track official notifications for record date, offer price, and schedule to make well-informed decisions.

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