Bengaluru: In an exchange filed by IT giant Infosys disclosed a significant refund of Rs 6,329 crore from the Income Tax Department, covering assessment orders from 2007-08 to 2018-19. However, the company also faces a notable tax liability of Rs 2,763 crore.
According to the exchange filing, the orders, received under Sections 250 and 254 of the Income Tax Act, 1961, about assessment years 07-08 to 15-16, 17-18, and 18-19, with an anticipated refund including the interest. The assessment orders under Section 143(3) for the assessment year 22-23 indicate a tax demand of Rs 2,763 crores, and under Section 201 & 201(1A) for the assessment year 11-12, with a tax demand of Rs 4 crores, have been received.
The Bengaluru-based company is also assessing the impact of these orders on its financial statements for the quarter and year ending March 31, 2024. The IT giant highlights that its income tax expense comprises both current and deferred income tax, and it is also evaluating the possibility of filing appeals against these orders.
An Infosys subsidiary is set to receive reimbursement orders under various sections of the same law, totaling Rs 14 crore, for assessment years 2007-09 and 2016-17.
Looking ahead, Infosys is scheduled to announce its fourth-quarter results for fiscal 2024 and provide revenue guidance for fiscal 2025 on April 18 after market close.
Despite risks such as regulatory changes, geopolitical tensions, and currency fluctuations, Morgan Stanley has reiterated its overweight rating on Infosys, with a price target of Rs 1,750, mentioning the company’s strong execution and innovative service offerings as the basis for its confident outlook.
