Infosys, the country’s second-largest IT services company, has disclosed that it anticipates a refund of Rs 6,329 crore from the Income Tax Department. Additionally, it has revealed tax demands amounting to Rs 2,763 crore, citing various assessment orders.
The Bengaluru-based company informed the stock exchanges about receiving orders from the Income Tax Department pertaining to assessment years ranging from 2007-08 to 2015-16, 2017-18, and 2018-19 during the quarter.
In a filing with the BSE, Infosys stated, “As per the orders, the company expects a refund of Rs 6,329 crore (including interest). The company is in the process of evaluating the implications of these orders on the financial statements for the quarter and year ending March 31, 2024.”
Furthermore, Infosys has received an order for assessment year 2022-23 with a tax demand of Rs 2,763 crore, inclusive of interest. Additionally, for assessment year 2011-12, there is a tax demand of Rs 4 crore, including interest.
Notably, assessment orders have also been received for subsidiaries, amounting to a total of Rs 277 crore. This includes orders for assessment years 2021-22 and 2018-19, with a total tax demand of Rs 145 crore. Other orders include assessment year 2022-23 with a tax demand of Rs 127 crore, and assessment year 2022-23 with a tax demand of Rs 5 crore, both inclusive of interest.
Infosys noted that it is currently evaluating the implications of these orders on its financial statements for the quarter and year ending March 31, 2024, and is also considering filing appeals against these orders.
Additionally, one of its subsidiaries has received refund orders under Section 254 for assessment years 2007-08 and 2008-09, as well as under Section 154 for assessment year 2016-17. The total refund amount as per these orders is Rs 14 crore.
Considering the cumulative impact of these orders, which exceed the materiality criteria prescribed under Regulation 30 of the Listing Regulations, Infosys has made this disclosure. The company is scheduled to announce its financial results for the March quarter and full FY24 on April 18.
Previously, Infosys had reported a lower-than-expected 7.3 percent decline in net profit due to sluggish demand from clients, leading to a downward revision of its annual sales forecast for the December quarter.
