Company: INFY
Filing Date: 2025-10-21
Form Type: SC TO-C
Source: 0001193125-25-245101
Chunk: 101

Company: Infosys Ltd
Filing Date: 2025-10-21
Form: SC TO-C
Chunk 101
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) incurred solely by the selling Eligible Shareholders.
See Section 23.

What are the income tax consequences if an Eligible Shareholder tenders their Equity Shares?

. The Finance (No. 2) Act, 2024 has made amendments in relation to buyback of shares shifting the tax liability in
the hands of the shareholders and the Company is not required to pay tax on the distributed income. Under Section 2(22)(f) of the ITA, the entire amount paid by a domestic company for the buyback of its shares is treated as dividend income in
the hands of shareholders (resident or non-resident), taxable under the head Income from Other Sources. Section 46A of the IT Act which provides for capital gains taxation in the hands of the shareholders
upon buy-back of shares by the company is amended with effect from October 1, 2024 which states that in the case of buy-back of 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. The Company shall be
required to deduct tax at source (TDS) or withholding of taxes (WHT) at the time of making the payment of total buyback consideration to shareholders which will be treated as dividend under the IT Act. Refer to Section 24 for detailed note on
Taxation.

United States -Certain Material U.S. Federal Income Tax Consequences”), his exchange of Equity Shares for cash pursuant to the Buyback will be a taxable transaction to such Eligible Shareholder for U.S. federal income tax purposes. In
such case, depending on the particular circumstances, and subject to the “passive foreign investment company” (“PFIC”) rules described in Section [24] under heading titled “United States - Certain Material U.S.
Federal Income Tax Consequences,” the Eligible Shareholder will be treated either as recognizing gain or loss from the disposition of the Equity Shares or as receiving a distribution from the Company. Any gain or loss recognized by the
Eligible Shareholder will generally be long-term capital gain or loss with respect to Equity Shares held for more than 12 months at the time of the disposition. A distribution will generally be taxed to the Eligible Shareholder as a dividend for
U.S. federal income tax purposes to the extent it is made from the current or accumulated earnings and profits (as determined under U.S.