Zerodha CEO Nithin Kamath Explains Tax Rules For Infosys' Rs 18,000 Cr Buyback

Zerodha co-founder Nithin Kamath took to X, formerly Twitter, to share a lesson on how one stands to benefit from the upcoming Infosys' buyback and on how to tally your gains or taxes.

This IT stock is set to undergo Rs 18,000 crore share buyback tomorrow on November 14, allowing investors to participate in this mega offer.

Notably, bell weather IT stock Infosys is undertaking its Rs 18,000 crore share buyback tomorrow, on November 14, offering investors a chance to participate in the mega offer.

In a X post, Kamath penned about  the taxation and determination of either capital gains or loss.

Nithin Kamath's Take On Infosys' Mega Buyback

Investors with shares in the company on or before November 14, 2025, will be eligible to participate in the buyback.

Kamath wrote, “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.”

Notably, with the T+1 settlement system in place, investors had till market close today (November 13) to purchase Infosys shares for participation.

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Nithin Kamath's Explains How Taxation On Buybacks

On taxation, Nithin Kamath shared how eligible participants should view their calculations.

“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,” he said

Additionally, he said, “One scenario where the buyback becomes attractive is when you have other capital gains that can be offset against these capital losses.”

Speaking on how the capital gains/loss plays a role over varying periods he said, “By the way, if the investment was done <1 year, then it is a short-term capital loss, and >1 year, it is a long-term capital loss. Otherwise, it is essentially like a dividend.”