Infosys Faces ₹341 Crore Tax Demand, Evaluates Financial Impact

2 Apr 2024 , 12:27 PM

Infosys disclosed receiving a tax demand of ₹341 Crore from the Income Tax Department for the assessment year 2020-21.

The company stated in an exchange filing that it is currently evaluating the impact of this demand on its financial statements for the quarter and fiscal year ending March 31. Infosys is considering filing an appeal against this tax demand and assessing its implications on its financial statements.

The tax demand aligns with Section 201 & 201(A) of the Income Tax Act of 1961. Additionally, a subsidiary of Infosys has been directed to refund ₹15 Crore for the 2014-15 assessment year, and the company is evaluating the implications of this directive on its financial statements.

Infosys is set to receive a tax refund of ₹6,329 Crore along with a tax liability of ₹2,763 Crore for assessment years ranging from 2007-08 to 2018-19, as per assessment orders.

The company is assessing the impact of these orders on its financial statements for the quarter and year ending March 31, 2024.

Furthermore, Infosys faced a tax liability, including interest, for the assessment year 2022-23, in contrast to a previous tax demand for the assessment year 2011-12, totaling ₹4 Crore, including interest.

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