Infosys, in a recent exchange filing, disclosed that it is poised to receive a substantial tax refund of Rs 6,329 crore from the income tax department. The refund pertains to assessment years 07-08 to 15-16, 17-18, and 18-19, under Section 250 & 254 of the Income Tax Act, 1961. This anticipated refund is expected to encompass interest as well.
However, amidst this positive development, Infosys also grapples with a significant tax liability of Rs 2,763 crore as per assessment orders under Section 143(3) of the Income Tax Act, 1961, for Assessment Year 2022-23.
Additionally, a tax demand of INR 4 crores has been levied for Assessment Year 2011-12. The company is currently engaged in evaluating the potential impact of these orders on its financial statements for the quarter and year ending March 31, 2024.
Infosys also revealed its intentions to assess the feasibility of filing appeals against these orders. Notably, its income tax expense incorporates both current and deferred income tax obligations. Furthermore, an arm of Infosys is poised to receive refund orders under various sections of the law, amounting to Rs 14 crore for assessment years 2007-09 and 2016-17.
In light of these developments, Infosys is gearing up to unveil its fourth-quarter results for fiscal 2024 and provide revenue guidance for fiscal 2025 on April 18, post the market’s closure.
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