Infosys Share Buyback: Understanding Tax Impact and Planning Opportunities.

Infosys is rolling out its largest-ever share buyback worth Rs 18,000 crore. Retail investors should not treat buyback proceeds the same way as capital gains from selling shares on exchange. Instead, money received from a buyback is taxed at the investor's regular Income-Tax slab rate, and the entire original investment is treated as a capital loss, which can be set off against other capital gains. The nature of the capital loss depends on how long the shares were held, with less than one year considered a short-term capital loss and more than one year considered a long-term capital loss.