New Delhi: Infosys, a prominent IT corporation, disclosed that it had received a tax demand totalling ₹341 crore from the Income Tax department for the assessment year 2020-21. The demand, comprising interest, was issued under Sections 201 and 201(A) of the Income Tax Act, 1961, by the Government of India. Infosys is presently evaluating the impact of this directive on its financial statements for the quarter and fiscal year ending March 31, 2024, and is contemplating appealing against it.
Additionally, a subsidiary of Infosys has been instructed to refund ₹15 crore for the assessment year 2014-15 under Section 154 of the Income Tax Act, 1961. Infosys is also analyzing the implications of this refund order on its financial statements for the same period.
Conversely, the company is expected to receive a tax refund of ₹6,329 crore along with a tax liability of ₹2,763 crore for assessment years spanning from 2007-08 to 2018-19. These assessments, inclusive of interest, are being reviewed for their impact on Infosys’ financial statements for the quarter and year ending March 31, 2024.
Furthermore, Infosys highlighted a contrast in tax liabilities, mentioning a previous tax demand of ₹4 crore, inclusive of interest, for the assessment year 2011-12, as opposed to the current tax liability for the assessment year 2022-23. All actions and directives are in accordance with the Income Tax Act of 1961.
