Company: INFY
Filing Date: 2025-07-01
Form Type: 20-F
Source: 0000950170-25-091925
Chunk: 189

Company: Infosys Ltd
Filing Date: 2025-07-01
Form: 20-F
Item: Item 10
Chunk 189
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 the ADSs) held by the non-resident investor for a period of more than 12 months is treated as long term capital assets. If the shares are held for a period of less than 12 months from the date of conversion, the same is treated as short term capital asset.

Capital gains are taxed as follows:

•As per the applicable scheme, gains from a sale of ADSs outside India by a non-resident to another non-resident are not taxable in India;
•Long-term capital gains realized by a resident from the transfer of the ADSs will be subject to tax at the rate of 10%, as increased by the applicable surcharge and health and education cess. However, as per Finance (No. 2) Act, 2024 such transfer which takes place on or after July 23, 2024, will be taxable at the rate of 12.5%, as increased by the applicable surcharge and health and education cess; short-term capital gains on such a transfer will be taxed at graduated rates with a maximum of 30%, as increased by the applicable surcharge and health and education cess;
•Long-term capital gains realized by a non-resident upon the sale of equity shares obtained from the conversion of ADSs are subject to tax at a rate of 10% as increased by the applicable surcharge and health and education cess. However, as per Finance (No. 2) Act, 2024 such transfer which takes place on or after July 23, 2024, will be taxable at the rate of 12.5%, as increased by the applicable surcharge and health and education cess; and short-term capital gains on such a transfer will be taxed at the rate of tax applicable to the seller;

 

•The Finance Act, 2018 has amended the Income Tax Act to provide that Long Term Capital Gain exceeding ₹100,000 arising from sale of equity shares in a company or a unit of an equity-oriented fund or a unit of a business trust will be taxable at a rate of 10%, subject to Securities Transaction Tax, or STT (described below) is paid both at the time of purchase and sale of such shares (or a unit of an equity-oriented fund or a unit of a business trust) and will not get the benefit of indexation. Thus, any transfer carried out after April 1, 2018, would result in Long Term Capital Gains in excess of ₹100,000 and will attract tax at the rate of 10%.