Short Term Capital Gain of Infosys Buyback

General
1

I have 140 shares of INFY, 39 shares can be offered for buyback.
In this regard I have the following queries.

  1. Whether all the shares can be offered for buyback, if so, whether all the shares will be blocked/transferred to RIL RTA till acceptance confirmation and when the unaccepted shared will be redeposited to my demat account?

  2. I have purchased all the shares at different prices, then how short term capital gain (STCG) will be calculated? What base price of INFY will be taken for calculation of STCG? How Infosys company will calculate STCG for thousands of share holders for the purpose of tax deduction as every share holder’s purchase prices will be different

2

if you offer all 39 shares. you will pay the STCG for profit earn on them if you bought all of them in this FY.

3

@ARUN_KANTI_MITRA Buy of share by listed company will be taxable in the hands of a shareholder u/s/ 46A where Short/Long term would be depending upon the 12 months cut off ONLY where these shares have been transacted paying STT otherwise 36 month rule will be applied…

In other words, if any bonus shares/ ipo etc related GAINS (short/ long) then 36 months will be used to define if it is short term or long term and also please make a note that if STT has not been paid then Long term CAPITAL GAIN will not be exempt …it will be taxed either by 20% (with indexation benefit) or 10% witht index benfit…

As far as TDS or tax to be deducting by the company , then there is NO PROV in the act presently which require such company to deduct tax while making such buy back …this is applicable only when resident shareholder…all Non-resident shareholder case TDS will be applicable…

feel free o revert for anything more to clarify…

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4

It is not clear how Infosys company find out profit for deduction of tax.

5

The reply is not according to my queries.

6

no TDS/ tax deduction required for Infosys…this is already there in my answer…

7

To answers your first query . Only that many number of shares would be blocked based on what you would submit
Ex: In my case i had 105 shares and was eligible for 27 shares . I have submitted for all 105 shares for buy back
If i am lucky all 105 shares would be bought back (Based on amount of retail participation ) .Based on what gets accepted remaining shares would get redeposited . In TCS case all my shares had got accepted

Infosys will not calculate STCG . You know the buy price and you know the duration how long you have held on to these shares
Accordingly you will have STCG calculated

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8

Thanks Rahavendra, I thought only can offer the entitled stocks .Now its more clear if you lucky you can get more entitlment.

9

Thanks Raghavendra for clarification. As you stated that the STCG will be calculated by me and accordingly I have to pat income tax and no TDS will be done by INFY.
Please tell me, how to participate in buyback? I have received mail from Infosys and I have down loaded tender offer form. How do I submit the form duly filled & signed to broker i.e. Zerodha? Is it scan copy to be mailed to Zerodha or the signed copy to be sent through speed post?

10

This is how you participate in the buyback. Just a scanned copy is enough. Mention the number of shares you want to tender and send a scanned copy of the tender form to ‘[email protected]’

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11

Thanks Raghavendra.

12

How can i once again get the tender form to my mail id .It seems i lost the form as some items were deleted along with this one . Can someone send it to [email protected]