Infosys, the company that is synonymous with the information technology ecosystem in India, is set to get a record amount of tax refund — INR 6,329 crore (equivalent to nearly USD 760 million at current exchange rates) — from the Income Tax (IT) Department, Government of India.
This was announced yesterday by Infosys (aka Infy), the second-largest Indian company in the infotech space, at the closing of the Indian financial year on March 31.
However, a part of this cash pile will be scooped up again by the IT Department, as Infy has also received a tax demand to the tune of INR 2,763 crore (about USD 331 million), as the company informed the stock exchanges.
Infosys said that it had received orders from the Income Tax Department for tax assessment years 07-08 to 15-16, 17-18, and 18-19 during the quarter.
“As per the orders, the company expects a refund of Rs (INR) 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,” Infosys said in a filing at the BSE (formerly Bombay Stock Exchange).
The Bengaluru-headquartered infotech company also said that it had received an order for assessment year 22-23 with a tax demand of INR 2,763 crore, including interest, and for assessment year 11-12 with a tax demand of INR 4 crore, interest included.
Infosys has received assessment orders for its subsidiaries as well, totalling INR 277 crore, inclusive of interest.
These include assessment orders for assessment years 21-22 and 18-19, respectively, with total tax demand of INR 145 crore; order for assessment year 22-23 with a tax demand of INR 127 crore; and for assessment year 22-23 entailing tax demand of INR 5 crore, all of them inclusive of 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, and also evaluating filing appeals against these orders,” said Infosys.
Infosys, which competes with Tata Consultancy Services, Wipro, Cognizant and others for global contracts of infotech services, is scheduled to declare its financial results for the March quarter and full FY24, on April 18.