While Infosys will make a windfall gain of Rs 6,329 crore of income tax refund orders for 11 assessment years for assessment years ranging from 2007-08 to 2018-19, the software giant will also have to face a significant tax liability of Rs 2,763 crore on assessment orders covering covering the same period.
Infosys Subsidiaries Face Tax Assessments and Refunds Under Income Tax Act
The tax assessments extend beyond the parent company, as Infosys subsidiaries have also received assessment orders from the income tax department with collective tax demand of ₹277 crore covering assessment years from 2018-19 to 2021-23 including interest. The directives are in accordance with different provisions outlined in the Income Tax Act of 1961 and include accrued interest.
Another division of Infosys is set to be issued refund directives under different provisions of the same legislation, totaling ₹14 crore, covering the assessment periods of 2007-09 and 2016-17. The tech giant said it was in the process of evaluating the implications of these orders on the financial statements and income tax expense comprises current and deferred income tax.
Infosys Faces Significant Tax Refund and Assessment Orders, Impacting Financials for Fiscal Years
“As per the orders the Company expects a refund of INR 6,329 crores. The Company has also received assessment order for assessment year 22-23 with a tax demand of INR 2,763 crores,” reads the Infosys exchange filing. The tax liability for the assessment year 2022-23, inclusive of interest, contrasts with Infosys' previous tax demand for the assessment year 2011-12, totaling ₹4 crore, including interest.
Infosys had disclosed consolidated income tax expenses of ₹9,214 crore in fiscal 2022-23 from ₹7,964 crore in the preceding fiscal period.
