Bengaluru:
Infosys
will receive a
tax refund
of Rs 6,329 crore, including interest from the
income tax department
, for
assessment years
2007-08 to 2018-19. Infosys has also received an assessment order for 2022-23 with a
tax demand
of Rs 2,763 crore.
The company, in an exchange filing, said it is in the process of evaluating the implications of these orders on the financial statements for the quarter and year ending March 31.
The company’s two major tax jurisdictions are India and the US, though the company also files tax returns in other overseas jurisdictions.
For assessment year 2011-12, Infosys has a tax demand of Rs 4 crore, including interest. Additionally, Infosys’s subsidiaries have received assessment orders with a total tax demand of Rs 145 crore for assessment years 2021-22 and 2018-19, respectively. It has faced two other tax demands of Rs 127 crore and Rs 5 crore respectively for the assessment year 2022-23.
“Further, a subsidiary of the company has received refund orders under Section 254 for assessment years 2007-08 and 2008-09, and under Section 154 for assessment year 2016-17. The refund amount as per these orders is Rs 14 crore. 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,” Infosys said in its filing. As of March 29, the above orders cumulatively exceed the materiality criteria as prescribed under Regulation 30 of the Listing Regulations, and the disclosure is submitted.
Infosys, in its 2022-23 annual report, said that deferred income tax assets and liabilities are recognised for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
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