Advertisement
Infosys Ltd, one of India’s leading IT services companies, has disclosed that it anticipates a substantial refund of ₹6,329 crore from the Income Tax Department.
The company received assessment orders spanning multiple years, including from 2007-08 to 2018-19, during the quarter. These orders have paved the way for the expected refund.
Infosys is currently evaluating the implications of these orders on its financial statements for the quarter and fiscal year ending March 31, 2024. The assessment will factor in the refunds and any associated interests.
Scheduled to declare its financial results for the fourth quarter of the fiscal year and the full fiscal year 2023-24 on April 18, Infosys will likely incorporate these developments into its financial disclosures.
In addition to the expected refund, Infosys also disclosed tax demands totaling ₹2,763 crore, which includes interest, based on various assessment orders.
The assessment orders extend to Infosys subsidiaries as well, with tax demands totaling ₹277 crore for specific assessment years. Infosys is evaluating the implications of these orders on its subsidiaries’ financial statements.
While assessing the orders, Infosys is also considering the option of filing appeals against certain assessments, suggesting a proactive approach to addressing tax-related matters.
The cumulative impact of these orders surpasses materiality criteria prescribed under Regulation 30 of the Listing Regulations, prompting Infosys to provide this disclosure as mandated.
