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Infosys to get $760 million in tax refunds for 11 years
Information technology services firm said I-T department has also served it a tax demand of $330 million
Information technology (IT) services firm Infosys has said that it expects an income tax (I-T) refund of ₹6,329 crore (about $760 million), including interest, based on the tax department’s orders issued during the quarter for 11 past assessment years.
The tax refunds are for the assessment years 2007-08 to 2015-16; 17-18; and 18-19, India’s second largest IT services firm said.
“The company is in the process of evaluating the implications of these orders on the financial statements for the quarter and year ending March 2024,” Infosys said in a statement to the stock exchanges last week.
The company said the I-T department has served it a tax demand of ₹2,763 crore, inclusive of interest, for the assessment year 2022-23, apart from a demand for interest-inclusive ₹4 crore for the assessment year 2011-12.
In addition to these two demands, Infosys said the the tax department has served tax demands to the tune of ₹277 crore on its subsidiary companies for past assessment years.
“The company is in the process of evaluating the implications of these orders on the financial statements for the quarter and year ending March 2024 and also evaluating filing appeals against these orders,” it said in the statement
The company said one of its subsidiaries has received tax refund orders to the tune of ₹14 crore, and the company is evaluating the “implications of these orders on the financial statements”.
In early trading on Monday, the shares of the company rose about 1% on BSE from the previous session’s close before shedding gains to trade at ₹1,504.85, up 0.4%, at 11am, while the benchmark Sensex rose about 0.5% to trade at 74,035.68 at 11am.
Infosys is scheduled to report its financial results for the January-to-March quarter as well as for the full fiscal year on 18 April.