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

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

The Bengaluru-headquartered company said it is in the process of evaluating the impact of the order on its financial statements for the quarter and year ending March 31, 2024. Infosys also said it is evaluating filing an appeal against this order.

"Infosys Ltd on March 31, 2024, received order...from the Income Tax Department, Government of India for assessment year 20-21 with a tax demand of Rs 341 crore (including interest). The company is in the process of evaluating the implications of this order on the financial statements for the quarter and year ending March 31, 2024, and also evaluating filing an appeal against this order," Infosys said in a BSE filing.

Further, a subsidiary of the company has received refund order from the Income Tax Department for assessment year 2014-15, it said adding the refund amount as per the order is Rs 15 crore.

"The company is in the process of evaluating the implications of this order on the financial statements for the quarter and year ending March 31, 2024," Infosys said.

Infosys, the country's second largest IT services company, recently informed the stock exchanges that it expects a refund of Rs 6,329 crore from the Income Tax Department. In the same breath, it had also informed about a tax demand to the tune of Rs 2,763 crore, citing various assessment orders.

In the filing on Saturday, Infosys Ltd said it received orders from the Income Tax Department for assessment years 07-08 to 15-16, 17-18, and 18-19 during the quarter.

"As per the orders, the company expects a refund of Rs 6,329 crore (including interest). 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," it had said in the BSE filing.

Infosys, which competes with TCS and Wipro and others in the market for IT services contracts, is scheduled to declare its financial results for the fourth quarter of the current fiscal year as well as the full FY24 on April 18.

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

Infosys has received assessment orders for subsidiaries as well, totalling 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; order for assessment year 22-23 with a tax demand of Rs 127 crore; and for assessment year 22-23 entailing tax demand of Rs 5 crore -- all of them inclusive of interest.

For the December quarter, Infosys reported a lower-than-expected 7.3 per cent fall in net profit on sluggish demand from clients and cut its annual sales forecast. The company posted a net profit (attributable to shareholders) of Rs 6,106 crore compared to Rs 6,586 crore in the year-ago period.

Infosys' consolidated revenue from operations increased 1.3 per cent to Rs 38,821 crore during the third quarter of FY24 from Rs 38,318 crore a year ago.