Infosys To Receive Refund Of Nearly Rs 6,329 Crore From I-T Department

During the quarter, Infosys Ltd received assessment orders from the Income Tax Department spanning the years 2007-08 to 2015-16, as well as for the years 2017-18 and 2018-19

Infosys is scheduled to reveal its financial performance for both the fourth quarter of the present fiscal year and the entire FY24 on April 18th.

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The nation's second-largest IT services provider, Infosys, estimates a refund of Rs 6,329 crore from the Income Tax Department. The company also disclosed tax demands totaling Rs 2,763 crore to the stock exchanges, citing various assessment orders.

During the quarter, Infosys Ltd received assessment orders from the Income Tax Department spanning the years 2007-08 to 2015-16, as well as for the years 2017-18 and 2018-19. "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," Infosys stated in a BSE filing, PTI reported.

Infosys, a competitor of TCS, Wipro, and others in the market for IT services contracts, is slated to announce its financial results for the fourth quarter of the current fiscal year as well as the full FY24 on April 18.

Assessment Years 

The IT firm with its headquarters in Bengaluru further stated that it has received orders for assessment years '22 and '23 with a tax demand of Rs 2,763 crore, interest included, and '11 and '12 with a tax demand of Rs 4 crore, interest included.

It has received assessment orders totaling Rs 277 crore for subsidiaries. These comprise assessment orders with a total tax demand of Rs 145 crore for assessment years 21–22 and 18–19, respectively; an order with a tax demand of Rs 127 crore for assessment year 22–23; and an order with a tax demand of Rs 5 crore for assessment year 22–23, inclusive of 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, and also evaluating filing appeals against these orders," Infosys noted.

Additionally, it stated that a subsidiary of the business has received refund orders under Section 254 for assessment years 07-08 and 08-09 as well as under Section 154 for assessment years 16-17. The refund amount according to these orders is Rs 14 crore.

"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. As of March 29, 2024, the above orders cumulatively exceed the materiality criteria as prescribed under Regulation 30 of the Listing Regulations (as amended), and accordingly, this disclosure is submitted," Infosys clarified.