Amidst the bustling streets of New Delhi, Infosys, the nation’s second-largest IT services provider, anticipates a substantial refund of Rs 6,329 crore from the Income Tax Department. Revealing its financial intricacies, the company disclosed tax demands amounting to Rs 2,763 crore, stemming from diverse assessment orders spanning several fiscal years. Delving deeper into the details, Infosys Ltd elucidated that the assessment years range from 2007-08 to 2015-16, encompassing 2017-18 and 2018-19 as well.
In a formal declaration to the stock exchanges, Infosys outlined, “In accordance with the received orders, the company foresees a refund of Rs 6,329 crore, inclusive of accrued interest. The meticulous evaluation of these orders’ implications on the financial statements for the ongoing quarter and fiscal year ending March 31, 2024, is underway,” elaborated the company in its filing with the Bombay Stock Exchange (BSE). Scheduled to unveil its financial performance for the fourth quarter of the current fiscal year, along with the entirety of FY24, on April 18, Infosys braces for comprehensive scrutiny in the competitive landscape of IT services, pitting itself against industry stalwarts such as TCS and Wipro.
Adding further complexity to the narrative, the IT juggernaut from Bengaluru disclosed receiving additional orders, including those for the assessment year 2022-23, carrying a tax obligation of Rs 2,763 crore, alongside an assessment for the year 2011-12, tagged with a nominal Rs 4 crore tax demand. Additionally, Infosys acknowledged the receipt of assessment orders for its subsidiaries, aggregating to Rs 277 crore. These subsidiary orders entail assessments for the years 2021-22 and 2018-19, each commanding a tax outlay of Rs 145 crore. Furthermore, assessments for 2022-23, accumulating a tax demand of Rs 127 crore, and for the same fiscal year, a meager Rs 5 crore, all inclusive of accrued interest, were acknowledged.
Navigating through the labyrinth of legalities, Infosys divulged, “Contemplations regarding the financial implications of these orders on the quarter and fiscal year ending March 31, 2024, are in progress, coupled with an assessment of potential appeals against these orders.” Moreover, a subsidiary entity of the conglomerate has been entitled to refund orders under Section 254 for the years 2007-08 and 2008-09, alongside Section 154 for the year 2016-17, amounting to a collective refund of Rs 14 crore.
“As of March 29, 2024, the cumulative impact of the aforementioned orders surpasses the materiality criteria delineated under Regulation 30 of the Listing Regulations (as amended). Consequently, this disclosure is being meticulously furnished,” concluded Infosys, underlining the gravity of the financial proceedings.