Company: INFY
Filing Date: 2025-10-21
Form Type: SC TO-C
Source: 0001193125-25-245101
Chunk: 76

Company: Infosys Ltd
Filing Date: 2025-10-21
Form: SC TO-C
Chunk 76
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 necessary information and documents as prescribed under the Act. The Act also provides for different income-taxrates applicable to the gains arising from the buyback of shares, based on the residential status, classification of the shareholder, nature of the income earned etc. The summary of income-taximplications on buyback of listed equity shares on the recognised stock exchange in India is set out below. All references to equity shares herein refer to listed equity shares unless stated otherwise. Classification of Shareholders: Shareholders can be classified under the following categories:

| a. | Resident Shareholders being: |

| • |     | Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP) and Body of Individuals (BOI) |

| • |     | Others: |

| • |     | Company |

| • |     | Other than company |

| b. | Non Resident Shareholders being: |

| • |     | Non Resident Indians (NRIs) |

| • |     | Foreign Institution Investors (FIIs)/ Foreign Portfolio Investors (FPIs) |

| • |     | Others: |

| • |     | Company |

| • |     | Other than company |

Classification of Income: Members may note that as per the Income-taxAct, 1961, (“the IT Act”) as amended by the Finance (No. 2) Act, 2024, the entire consideration paid by company to its shareholders on buyback of shares shall be considered as dividend with effect from October 1, 2024 onwards. In this regard, a new clause (f) has been inserted in section 2(22) of the IT Act, which provides that “dividend” includes any payment by a company on purchase of its own shares from a shareholder in accordance with the provisions of section 68 of the Companies Act, 2013. Hence, any consideration paid to shareholders on account of a buyback of shares is taxable in the hands of the shareholders as dividend. 60

DRAFT—SUBJECT TO COMPLETION Section 46A of the Income Tax Act which provides for capital gains taxation in the hands of the shareholders upon buy-backof shares by the company is amended with effect from October 1, 2024 which states that in the case of buy-backof shares, the consideration received by the shareholder will be deemed to be Nil for the purpose of computing capital gains. Consequently, a capital loss will arise in the hands of the shareholder equivalent to the cost of acquisition of the shares bought back