Company: INFY
Filing Date: 2025-07-01
Form Type: 20-F
Source: 0000950170-25-091925
Chunk: 193

Company: Infosys Ltd
Filing Date: 2025-07-01
Form: 20-F
Item: Item 10
Chunk 193
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 Act 2024, the provision of section 115QA of the Income Tax Act shall not be applicable in respect of any buy-back of shares that takes place on or after October 1, 2024 and accordingly the exemption to shareholders under section 10(34A) of the Income tax Act will also not be available. Any consideration received by the shareholders on account of buy-back of shares on or after October 1, 2024 shall be taxable as dividend income under the head of ‘Income from other sources’ and such amount will be liable to withholding of tax at the applicable rates prescribed under Income Tax Act read along with Tax treaty with respective countries (together with MLI as applicable) subject to providing various Tax forms including Tax Residency certificate and electronic Form 10F by non-resident shareholders. For the purposes of computing the capital gain in the hands of shareholders with respect to the shares bought back, consideration received shall be deemed to be NIL in accordance with section 46A of the Income Tax Act, thereby 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.

Any Buyback undertaken on the NSE / BSE, is chargeable to the Securities Transaction Tax (“STT”).

Taxation for American Depositary Shares (ADSs) Holders: ADS holders with underlying equity shares, consequent to withdrawal of such equity shares may participate in a buyback by selling equity shares on Indian stock exchanges.

There can be no assurance that the Equity Shares offered by an ADS holder in a buyback will be accepted as such withdrawal of underlying equity shares is subject to the Foreign Exchange Management Act, 1999 and rules and regulations framed thereunder, if any, the Income Tax Act, and rules and regulations framed thereunder, the Depository Receipts Scheme, 2014, as applicable and other applicable approvals from the Reserve Bank of India.

ADS holders are advised to consult their legal, financial and tax advisors for advice prior to participating in a buyback, including advice related to any related regulatory approvals and tax issues.
A.The following is the brief summary of income tax implications on withdrawal and re-deposit of Equity Shares:

(i)While there are arguments in favour that conversion of ADS into shares should not be subject to capital gains tax, this view is not free from doubt as law is not very clear on this aspect.
(ii)The shares which would not be accepted by the Company in a buyback