Infosys income tax refund: Infosys Ltd., the country’s second-biggest software services company, expects to receive an income tax refund of Rs 6,329 crore. Nevertheless, assessment orders reveal that the corporation also faces a substantial tax bill of Rs 2,763 crore.
In a notification to the exchanges, the business stated, “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 directives follow different provisions of the 1961 Income Tax Act. These reimbursements, which include interest, are for assessment years 2007–08 through 2018–19.
However, the tax liability, including interest, relates to the assessment year 2022–2023. In addition, Infosys has a tax claim of Rs 4 crore, including interest, for the assessment year 2011–12.
The company’s total income tax expenses for 2022–2023 were Rs 9,214 crore. This value is up from Rs 7,964 crore for the prior fiscal year. The business claims that current and deferred income taxes are included in income tax expenses.
The corporation reported income tax expenses of more than Rs 2,500 crore for the quarter that concluded in December.
The income tax agency has served assessment orders to Infosys subsidiaries. Therefore, the impact of these orders extends beyond the parent company. Together, these orders result in a tax demand of Rs 277 crore (interest included) for 2018–19 and 2021–23 assessment years.
The Bengaluru-based business is considering “filing appeals against these orders” and assessing how they may affect its financial statements. Infosys expects to receive a repayment order under different provisions of the same statute. The order totals around Rs 14 crore for the assessment years 2007–09 and 2016–17.
The company recognizes current income tax for current and prior periods by accounting for amounts anticipated to be paid to or recovered from tax authorities. This recognition is based on the tax rates and laws enacted or substantively enacted by the balance sheet date. The company includes these details in its quarterly notes.
