31 March 2024 — Infosys Ltd, a prominent software services provider in India, is poised to receive a substantial tax refund of Rs 6,329 crore while also facing a significant tax liability of Rs 2,763 crore as per assessment orders from the income tax department.
Key Points:
- Tax Refund and Liability: Infosys is set to receive a tax refund of Rs 6,329 crore inclusive of interest for assessment years from 2007-08 to 2018-19. However, the company also faces a tax liability of Rs 2,763 crore, including interest, for assessment year 2022-23.
- Financial Implications: The company is evaluating the impact of these orders on its financial statements for the quarter and year ending March 31, 2024. This includes assessing the impact on income tax expenses, which were Rs 9,214 crore in 2022-23.
- Subsidiary Assessments: Infosys subsidiaries have also received assessment orders, leading to a collective tax demand of Rs 277 crore for assessment years spanning from 2018-19 to 2021-23. The company is considering filing appeals against these orders.
- Tax Refund for Unit: A unit of Infosys is slated to receive refund orders under various sections of the Income Tax Act, amounting to Rs 14 crore for assessment years 2007-09 and 2016-17.
Conclusion:
The tax refund and liability scenarios faced by Infosys highlight the complex financial landscape for major corporations in India. Infosys is actively evaluating the implications of these orders and is prepared to take necessary actions, including potential appeals, to address the tax-related matters.