Infosys receives tax demand of Rs 341 crore for assessment year 2020-21

Infosys is the second largest IT services company in the United States. (representative)

New Delhi:

IT services company Infosys on Monday said it has received a tax demand of Rs 341 crore from the Income Tax Department for the assessment year 2020-21, adding that it was evaluating an appeal against the said order.

The Bengaluru-based company said it is assessing the impact of the order on its quarterly and annual financial statements ending March 31, 2024. Infosys also said it was evaluating an appeal against the order.

“Infosys Ltd received an order from the Income Tax Department of the Government of India on March 31, 2024, requiring a tax payment of Rs 341 crore (including interest) for the assessment year 20-21. The company is assessing the tax,” Infosys said in a BSE filing : “The impact of the order on the quarterly and annual financial statements for the quarter ended March 31, 2024, and an appeal against the order is being assessed. “

Additionally, a subsidiary of the company has received a tax refund order from the Income Tax Department for the assessment year 2014-15 and the company said the increased tax refund amount under the order is Rs 15 crore.

“The company is evaluating the impact of the order on its quarterly and annual financial statements for the quarter ended March 31, 2024,” Infosys said.

Infosys, India’s second-largest IT services company, recently informed stock exchanges that it expects a refund of Rs 6,329 crore from the income tax department. At the same time, it also notified tax demand of up to Rs 2,763 crore citing various assessment orders.

Infosys Ltd said in a filing on Saturday that it received orders from the Income Tax Department during the quarter for the year of assessment 07-08, year of assessment 15-16, year of assessment 17-18 and year of assessment 18-19.

“Under the orders, the company expects refunds of Rs 6,329 crore (including interest). The company is evaluating the impact of these orders on the quarterly and annual financial statements for the quarter ended March 31, 2024,” it said in a BSE filing.

Infosys, which competes with the likes of TCS and Wipro in the IT services contract market, is scheduled to announce its financial results for the fourth quarter of this fiscal and the entire FY24 on April 18.

The Bengaluru-based IT company also said it has received orders for assessment year 22-23 with a tax demand of Rs 2,763 crore (including interest) and orders for assessment year 11-12 with a tax demand of Rs 4 crore Rs (with interest).

Infosys also received evaluation orders for subsidiaries amounting to Rs 277 crore.

These include assessment orders for assessment years 21-22 and 18-19 respectively with a total tax demand of Rs 145 crore; orders for assessment years 22-23 with a tax demand of Rs 127 crore; orders for assessment years 22-23 The tax requirement is Rs 5 crore – all inclusive of interest.

Infosys reported a lower-than-expected 7.3% drop in December quarter net profit due to sluggish customer demand and cut its annual sales forecast. The company reported net profit (attributable to shareholders) of Rs 6,106 crore as compared to Rs 6,586 crore in the same period last year.

Infosys’ consolidated operating income rose 1.3% to Rs 38,821 crore in the third quarter of FY24 from Rs 38,318 crore a year ago.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)