Infy 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.

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. And, 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. By the way, if the investment was done <1year, 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.

Btw, the Tax P&L reports on Console have a separate section for buybacks to make things easy for you