Nithin Kamath Breaks Down Tax Rules For Infosys’ Record Buyback

As Infosys gears up for India’s largest-ever share buyback on November 14, Zerodha CEO Nithin Kamath took to X to explain how the payout will be taxed.

He further said that, "I think it is essential to understand how you will be taxed on this. If you participate in the buyback at Rs 1800 (current price is Rs 1550), 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."

Kamath explained, "the entire investment value is then considered as a capital loss. One scenario where the buyback becomes attractive is when you have other capital gains that can be offset against these capital losses."

And he also clarified to the investors that if the investment was done less than an year ago, then it is a short-term capital loss, and more than an year, it is a long-term capital loss. "Otherwise, it is essentially like a dividend," he said.