Tech giant Infosys to receive windfall tax refund of Rs 6,329 crore from I-T department

Indian technology company Infosys is set to receive a tax refund of Rs 6,329 crore or around $750 million from the Income Tax Department. The refund covers various assessment years from 2007-08 to 2018-19.

Tax liabilities and demands

Despite the windfall, Infosys also faces tax liabilities amounting to Rs 2,763 crore for the assessment year 2022-23. Additionally, the company faces a tax demand of Rs 4 crore for the assessment year 2011-12. These demands are under evaluation to understand their impact on the financial statements for the quarter and year ending March 31, 2024.

Subsidiaries also affected

Not just Infosys, but its subsidiaries have also received assessment orders, resulting in a collective tax demand of Rs 277 crore for various assessment years. These include demands for the years 2021-22, 2018-19, and 2022-23. Infosys is considering filing appeals against these orders.

Financial implications

The company said that is is in the process of assessing how these orders will affect its financial statements. For the fiscal year 2022-23, Infosys reported consolidated income tax expenses of Rs 9,214 crore, an increase from Rs 7,964 crore the previous year. The tax refund and liabilities present a complex financial scenario that Infosys is diligently working to resolve.