Notably, bell weather IT stock Infosys is undertaking its ₹18,000 crore share buyback tomorrow, on November 14, offering investors a chance to participate in the mega offer.
In a detailed post on X (formerly Twitter), Kamath explained the taxation and determination of either capital gains or loss.
Nithin Kamath on Infosys’ record buyback tomorrow
Notably, with the date set for tomorrow, only those with shares in the company on or before November 14, 2025, will be eligible to participate in the buyback.
Kamath also informed his followers of the same, “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.
Nithin Kamath: Understand how taxation on buybacks work
On taxation, Nithin Kamath sought to explain, how participants should view the 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 pointed out.
Adding, “One scenario where the buyback becomes attractive is when you have other capital gains that can be offset against these capital losses.”
On how the capital gains or loss works over differing 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.”
The post ended with him suggesting that Zerodha users can access the platform’s Tax P&L reports, which has a separate section for buybacks, to understand how their individual calculations would work out.
