The country’s second largest IT services company, Infosys said that the company is expecting a refund of Rs 6,329 crore from the Income Tax Department.
Infosys To Receive Rs 6,329 Crore Tax Refund
Further informing the stock exchanges about tax demand to the tune of Rs 2,763 crore, citing various assessment orders.
Besides this, Infosys added that the IT service provider has received orders from the Income Tax Department for assessment years 07-08 to 15-16, 17-18, and 18-19 during the quarter.
In a BSE filing, the Indian IT giant said, “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.”
In addition to this, the Bengaluru-headquartered IT company has received an order for assessment year 22-23 with a tax demand of Rs 2,763 crore.
This also includes the interest, and for assessment year 11-12 with a tax demand of Rs 4 crore, interest included.
It is noteworthy here that the IT company has also received assessment orders for subsidiaries as well which is totalling Rs 277 crore.
This also includes the assessment orders for assessment years 21-22 and 18-19, respectively, with total tax demand of Rs 145 crore.
Along with the order for assessment year 22-23 with a tax demand of Rs 127 crore; and for assessment year 22-23 entailing tax demand of Rs 5 crore — all of them inclusive of interest.
In Process Of Evaluating Implications
“It appears that the IT major 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.
In addition to these, a subsidiary of the company has received refund orders under Section 254 for assessment years 07-08 and 08-09 and under Section 154 for assessment years 16-17, it said.
Further adding that the refund amount as per these orders is Rs 14 crore.
Infosys said, “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 on 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.”
The IT service provider is scheduled to declare its financial results for the March quarter and full FY24, on April 18.
Earlier, Infosys had reported a lower-than-expected 7.3 per cent fall in net profit owing to the sluggish demand from clients and cut its annual sales forecast for the December quarter.
