Infosys will receive a windfall tax refund from the income tax department totaling ₹6,329 crore

The income tax department is going to give IT giant Infosys Ltd a tax refund of ₹6,329 crore. However, the business is also facing a significant tax obligation of ₹2,763 crore based on assessment orders.

The instructions comply with various provisions delineated in the Income Tax Act of 1961. These reimbursements, which cover accumulated interest as well, are for assessment years 2007–2008 through 2018–19.

In a release to the exchanges, the company stated that it was assessing the effects of these orders on the financial statements for the quarter and year ending March 31, 2024.

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In contrast to Infosys’ prior tax demand for the assessment year 2011–12, which totaled ₹4 crore, including interest, the tax liability for the assessment year 2022–2023 includes interest.

The company reported consolidated income tax expenses of ₹9,214 crore for the fiscal year 2022–2023, a significant increase from the ₹7,964 crore reported for the previous fiscal period.

The business makes it clear that both current and deferred income tax components are included in its income tax expense.

Notably, the business reported income tax expenses exceeding ₹2,500 crore for the quarter that ended in December.

The income tax department has issued assessment orders to Infosys subsidiaries, so these tax assessments go beyond the parent company. When taken as a whole, these orders total ₹277 crore in tax demands, interest included, for the assessment years 2018–19 through 2021–23.

The Bengaluru-based company said it is evaluating how these directives will affect its financial records at the moment and is thinking about filing an appeal against them.

Additionally, under separate provisions of the same legislation, a division of Infosys is scheduled to receive refund directives totaling ₹14 crore, covering the assessment periods of 2007-09 and 2016-17.

“In addition, refund orders under Section 254 for assessment years 07-08 and 08-09 and under Section 154 for assessment years 16-17 have been received by a subsidiary of the company. According to these orders, INR 14 crores will be refunded. The Company is currently assessing how these orders will affect the financial statements for the quarter and year ending March 31, 2024,” the statement continued.