Infosys to receive Rs 6,329 crore tax refund amidst assessment orders

Infosys will be getting a refund of Rs 6,329 crore from the income tax department, the firm said in an exchange filing. The company also faces a significant tax liability of Rs 2,763 crore, according to assessment orders covering 2007-08 to 2018-19.

“Infosys received orders under Section 250 & 254 of the Income Tax Act, 1961 from the Income Tax Department, Government of India for assessment years 07-08 to 15-16, 17-18 & 18-19 during the quarter. As per the orders the Company expects a refund of INR 6,329 crores (including interest). The Company has also received assessment order under Section 143(3) of the Income Tax Act, 1961 for assessment year 22-23 with a tax demand of INR 2,763 crores (including interest) and under Section 201 & 201 (1A) of the Income Tax Act, 1961 for assessment year 11-12 with a tax demand of INR 4 crores (including interest),” read the exchange filing.

The IT major 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, 2024. According to the company, income tax expense comprises current and deferred income tax.

The Bengaluru-based company said it is also “evaluating filing appeals against these orders.”

Apart from that, an Infosys arm has been slated to receive refund orders under various sections of the same law amounting to Rs 14 crore, for assessment years 2007-09 and 2016-17.

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. Morgan Stanley has reiterated its Overweight rating on Infosys, with a price target of Rs 1750, indicating a 17% upside from its last close of Rs 1498.05 on March 28. The firm cites Infosys’s strong execution and innovative service offerings as the basis for its positive stance but warns of risks including geopolitical tensions, regulatory changes, and currency fluctuations that could impact performance. BusinessToday