Infosys Set for ₹6,300 Crore Windfall from Tax Refunds

10 Apr 2024 , 11:58 AM

Due to income tax refund orders for 11 assessment years, Infosys, the second-largest software services exporter in India, has realized a windfall gain of ₹6,329 Crore. According to the corporation, the refunds were received in the fourth quarter of the 2023–2024 fiscal year.

With the exception of 2016–17, the reimbursements, which include interest, relate to assessment years that fall between financial years 2007–08 and 2018–19.

Furthermore, Infosys said in a regulatory filing late on Saturday that the income tax authorities had levied a tax demand of ₹2,763 Crore for the assessment year 2022–2023.

“The Company is currently assessing how these orders will affect the financial statements for the quarter and year ending March 31, 2024,” the statement from the firm stated.

Additionally, Infosys is owed ₹4 Crore in taxes for the assessment year 2011–12, which includes interest. Its companies have also received some of the orders.

The company’s consolidated income tax expenses for FY23 were ₹9,214 Crore, up from ₹7,964 Crore the year before.

Separate notices were also sent to Infosys’ subsidiaries regarding orders for tax liabilities of ₹145 Crore for the assessment years 2021–22 and 2018–19, ₹127 Crore for the assessment year 2022–23, and ₹5 Crore for the assessment year 2022–23.

Refund orders totaling ₹14 Crore were also received by one of the subsidiaries for the assessment years 2007–08, 2008–09, and 2016–17.

Every order was given in accordance with different provisions of the 1961 Income Tax Act.

The disclosure was made by Infosys because, as of March 29, 2024, “the above orders cumulatively exceed the materiality criteria as prescribed under Regulation 30 of the Listing Regulations (as amended),” the company stated.

For the nine months ending in December 2023, Infosys and its subsidiaries recorded a consolidated total tax expense of ₹7,474 Crore.

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