Company: INFY
Filing Date: 2025-07-01
Form Type: 20-F
Source: 0000950170-25-091925
Chunk: 52

Company: Infosys Ltd
Filing Date: 2025-07-01
Form: 20-F
Item: Item 3
Chunk 52
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MLI” as applicable), subject to providing various Tax forms including a Tax Residency certificate by non-resident shareholders.
If the effective rate of tax at source on dividend increases in the future, or new forms of taxes on distribution of profits are introduced, the dividend amount receivable by our shareholders after taxes may decrease.

Indian listed companies which have made a public announcement in respect of a buyback of shares after July 5, 2019, are liable for additional income tax on the buyback of shares of listed companies under section 115QA of the Income Tax Act. Therefore, all Indian companies are subject to tax on buyback of shares. Correspondingly, an income tax exemption to shareholders under section 10(34A) of the Income Tax Act is provided. However, as per Finance (No. 2) Act 2024, the provision of section 115QA of the Income Tax Act shall not apply in respect of any buy-back of shares, that takes place on or after 1st October, 2024 and accordingly exemption to shareholders under section 10(34A) of the Income tax Act will not be applicable. Further any consideration received by the shareholders on account of buy-back of shares on or after 1st October, 2024 shall be taxable as dividend income, as income from other sources as per the provision of section 2(22)(f) of the Indian Income Tax Act and such amount will also be liable to withholding of tax at the applicable rates prescribed under Indian Income Tax Act read along with the applicable tax treaties with respective countries (together with MLI as applicable) subject to providing various Tax forms including Tax Residency certificate by non-resident shareholders. For the purposes

of computing the capital gain under the Indian Income Tax Act with respect to the shares bought back, consideration received by the shareholders shall be deemed to be NIL as per section 46A of the Income Tax Act, thus resulting in a capital loss in the hands of the shareholders. Such capital loss shall be eligible for set-off and carry forward as per section 74 of the Income Tax Act.

From April 1, 2025, open market buyback (through stock exchanges) are no longer be permitted. The last three buybacks done by us were open market buybacks. Open market has been the preferred mode of buyback since it allows the company to buy shares at market price and has higher EPS accretion compared to a tender-offer buyback, as well as ease in execution of the same