🔍 Infosys Buyback 2025: A 20% Premium or a Tax Mirage?

Описание: 🔍 Infosys Buyback 2025: A 20% Premium or a Tax Mirage?

Infosys has announced another massive buyback at ₹1,800 per share — that’s nearly 20% above market!

Investors are rushing to decide whether to tender their shares or hold on.

But wait — the new tax rules have changed everything.
Under the new post-2024 taxation regime, the buyback amount is taxed in the investor’s hands — not at the company level.

Today the entire amount is taxable in the investor’s hands as dividend income. This single change has made buybacks “tricky,” especially for high-income investors.

Here’s a quick summary from my analysis:
💡 Investors earning up to ₹20 lakh annually — gain net 13–16% post-tax.
💡 Higher-income investors (Greater ₹20 lakh) — see little or no real gain after tax and surcharge.
💡 Retail investors (Less than ₹2 lakh category) — benefit the most due to better acceptance ratios.

So while the headline premium looks attractive, the effective post-tax yield tells a different story. Promoters and management may not participate — and for good reason.



🎥 I’ve explained the slab-wise impact, short-term capital loss setoff and effective yield computation in my latest video.

In this video, I’ll also break down exactly who should participate, who shouldn’t and why the real post-tax return may surprise you!

Video explains:
✅ How buyback taxation now works under the Finance Act 2024
✅ Why high-income investors gain little despite the 20% premium
✅ How small investors still earn 12–16% post-tax return
✅ The short-term capital loss setoff angle
✅ Why promoters are likely not participating


Whether you’re a retail investor, finance professional or CFA/CA candidate — this video gives you the complete tax-adjusted analysis behind Infosys’ latest buyback decision.

📊 Key Takeaway:
✔ Lower and middle-income investors benefit more
✔ HNIs see minimal upside due to tax drag
✔ Know your post-tax yield before tendering shares


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