Infosys: Infosys set to receive Rs 6,300 crore tax refund gain

Infosys, India’s second largest software services exporter, has made a windfall gain of Rs 6,329 crore due to income tax refund orders for 11 assessment years. The company got the refunds in the fourth quarter of financial year 2023-24, the company said.

The refunds, inclusive of interest, pertain to assessment years spanning from financial years 2007-08 to 2018-19, except 2016-17.

Additionally, the income tax department has slapped a tax demand of Rs 2,763 crore for assessment year 2022-23, Infosys said in a regulatory filing late Saturday.

“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,” the company said.

Infosys also has a tax demand of Rs 4 crore, including interest for assessment year 2011-12. The orders have also been sent to some of its subsidiaries.

In FY23, the company reported consolidated income tax expenses of Rs 9,214 crore, compared to Rs 7,964 crore in the previous year.

Moreover, Infosys’ subsidiaries also got orders for tax liabilities of Rs 145 crore cumulative for assessment years 2021-22 and 2018-19, Rs 127 crore for assessment year 2022-23 and Rs 5 crore for assessment year 2022-23, in separate notices.One of the subsidiaries also got refund orders with Rs 14 crore refund amount for assessment years 2007-08, 2008-09 and 2016-17.

All the orders were issued as per various sections of the Income Tax Act, 1961.

“As on March 29, 2024, the above orders cumulatively exceed the materiality criteria as prescribed under Regulation 30 of the Listing Regulations (as amended), and accordingly this disclosure is submitted,” Infosys said.

Infosys and its units incurred a consolidated total tax expense of Rs 7,474 crore for the nine-month period ended December 2023.