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Infosys, India‘s second-largest software services exporter, has disclosed a significant windfall gain of Rs 6,329 crore attributed to income tax refund orders spanning 11 assessment years. This substantial refund, inclusive of interest, pertains to assessment years ranging from the financial years 2007-08 to 2018-19, with the exception of 2016-17.
However, amidst this positive news, Infosys also revealed that it has been served with a tax demand of Rs 2,763 crore for the assessment year 2022-23. This tax demand was disclosed in a regulatory filing made by the company over the weekend.
Moreover, there is an additional tax demand of Rs 4 crore, including interest, for the assessment year 2011-12. These tax orders have also been issued to some of Infosys’ subsidiaries.
The company stated that it is currently evaluating the implications of these orders on its financial statements for the quarter and year ending March 31, 2024.
In the fiscal year 2022-23, Infosys reported consolidated income tax expenses of Rs 9,214 crore, compared to Rs 7,964 crore in the previous year.
The subsidiaries’ position
Additionally, Infosys’ subsidiaries have also received notices for tax liabilities totaling Rs 145 crore for assessment years 2021-22 and 2018-19, Rs 127 crore for assessment year 2022-23, and Rs 5 crore for assessment year 2022-23, separately.
One of Infosys’ subsidiaries has also been granted refund orders with a refund amount of Rs 14 crore for assessment years 2007-08, 2008-09, and 2016-17.
All of these orders were issued under various sections of the Income Tax Act, 1961.
As of March 29, 2024, the cumulative impact of the above orders exceeds the materiality criteria prescribed under Regulation 30 of the Listing Regulations (as amended), and accordingly, this disclosure is being submitted, Infosys stated.
For the nine-month period ending December 2023, Infosys and its units collectively incurred a consolidated total tax expense of Rs 7,474 crore.
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