Zerodha co-founder and CEO Nithin Kamath has taken to social media to provide a comprehensive guide for investors looking to benefit from Infosys' historic ₹18,000 crore share buyback, scheduled for November 14. In a detailed post on X, formerly Twitter, Kamath broke down the complex taxation rules and calculation methods for capital gains or losses, offering valuable insights for one of India's most widely held stocks.
Eligibility and Record Date for Infosys Buyback
Kamath emphasized that only investors holding Infosys shares in their demat accounts as of November 14, 2025 will be eligible to participate in this massive buyback program. Due to India's T+1 settlement system, investors had until market close on November 13 to purchase Infosys shares if they wished to participate in this opportunity.
"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," Kamath informed his followers. The IT bellwether is repurchasing shares through the tender offer route at ₹1,800 per share, representing an impressive over 18% premium to the last closing price of ₹1,514.60 on the BSE recorded on November 10.
Understanding Buyback Taxation Rules
Kamath provided crucial clarity on how taxation works for buyback participants. "I think it is essential to understand how you will be taxed on this. If you participate in the buyback at ₹1,800, 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," he explained.
He further pointed out that the entire investment value is then considered as a capital loss. This scenario becomes particularly attractive for investors who have other capital gains that can be offset against these capital losses, providing a tax optimization strategy.
Regarding the holding period classification, Kamath clarified that if the investment was held for less than one year, it qualifies as a short-term capital loss, while holdings beyond one year are considered long-term capital losses. He noted that otherwise, the treatment is essentially similar to dividend income.
Key Details of Infosys' Record Buyback
This landmark buyback represents Infosys' largest ever share repurchase program and comes after a gap of three years. The company plans to repurchase up to 10 crore equity shares, which accounts for approximately 2.41% of its total paid-up equity share capital.
The buyback offer is open to all shareholders, with a specific 15% reservation for small investors, ensuring broader participation across investor categories. For Zerodha users seeking personalized calculations, Kamath suggested utilizing the platform's Tax P&L reports, which include a dedicated section for buyback transactions to help investors understand their individual tax implications.
