IT major Infosys Ltd is poised to receive a tax refund totaling ₹6,329 crore from the income tax department. Nonetheless, the company is concurrently confronting a substantial tax liability of ₹2,763 crore as per assessment orders.
The directives are in accordance with different provisions outlined in the Income Tax Act of 1961. These refunds, which include accrued interest, relate to assessment years ranging from 2007-08 to 2018-19.
“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,” the company said in a release to the exchanges.
However, the tax liability for the assessment year 2022-23, inclusive of interest, contrasts with Infosys’ previous tax demand for the assessment year 2011-12, totaling ₹4 crore, including interest.
In the fiscal year 2022-23, the company disclosed consolidated income tax expenses of ₹9,214 crore, a notable increase from ₹7,964 crore in the preceding fiscal period.
The company clarifies that its income tax expense encompasses both current and deferred income tax components.
Notably, during the quarter concluding in December, the company recorded an income tax expense exceeding ₹2,500 crore.
These tax assessments extend beyond the parent company, as Infosys subsidiaries have also received assessment orders from the income tax department. Collectively, these orders amount to a tax demand of ₹277 crore, inclusive of interest, covering assessment years from 2018-19 to 2021-23.
The company headquartered in Bengaluru stated that it is currently assessing the impact of these directives on its financial records and is considering the possibility of lodging appeals against them.
Furthermore, a division of Infosys is set to be issued refund directives under different provisions of the same legislation, totaling ₹14 crore, covering the assessment periods of 2007-09 and 2016-17.
“Further, 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 year 16-17. The refund amount as per these orders is INR 14 crores. 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,” it further said.
Visit www.cagurujiclasses.com for practical courses
Check out on Amazon:
📖Products I Use for Videos and for my office: https://amzn.to/3JEVbcj
📚Income Tax Books: https://amzn.to/3qI3lK9
📚GST Books: https://amzn.to/43XmdmA
