Infosys, a leading Indian IT services company, anticipates a substantial tax refund of Rs 6,329 crore from the Income Tax Department, alongside disclosed tax demands of Rs 2,763 crore. These revelations stem from assessment orders covering multiple fiscal years
Infosys has announced that it is expecting a refund of Rs 6,329 crore from the Income Tax Department. This anticipated refund comes as part of various assessment orders issued to Infosys for the fiscal years spanning from 2007-08 to 2018-19. Alongside this promising refund, Infosys also disclosed tax demands totalling Rs 2,763 crore, citing assessments across different fiscal periods.
The company made these revelations in a filing with the Bombay Stock Exchange (BSE), indicating its proactive approach towards transparency with its stakeholders. Furthermore, Infosys highlighted that it's currently assessing the potential impact of these tax-related developments on its financial statements for the quarter ending March 31, 2024. Such meticulous evaluation is crucial for ensuring accurate financial reporting and compliance with regulatory standards.
Infosys operates in a highly competitive landscape, vying with industry giants such as TCS and Wipro for lucrative IT services contracts. As it gears up to declare its financial results for the fourth quarter of the ongoing fiscal year and the entire fiscal year 2023-24 on April 18, these tax-related matters add complexity to its financial outlook.
In addition to the aforementioned tax demands and refunds, Infosys disclosed assessment orders for its subsidiaries, which collectively amount to Rs 277 crore. These orders pertain to various assessment years and come with corresponding tax demands. Infosys emphasized that it's diligently evaluating the implications of these subsidiary-related assessment orders on its financial standing, underscoring its commitment to thorough financial management and compliance.
Furthermore, Infosys provided details about refund orders received by one of its subsidiaries under Section 254 for assessment years 2007-08 and 2008-09, and under Section 154 for assessment year 2016-17. These refund orders total Rs 14 crore. Given the cumulative significance of these tax-related orders, Infosys deemed it necessary to disclose them in accordance with regulatory requirements. As of March 29, 2024, the aggregate impact of these tax-related orders exceeds the materiality criteria stipulated under Regulation 30 of the Listing Regulations.