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Income Tax Department Sends Infosys a Demand Notice of ₹341 Crore

Income Tax Department Sends Infosys a Demand Notice

On Monday, IT giant Infosys disclosed that it had received a tax demand notice amounting to ₹341 crore from the Income Tax department for the assessment year 2020-21. The company stated that it had received the order under Section 201 & 201(A) of the Income Tax Act, 1961, from the Indian government’s Income Tax Department on March 31, 2024. This demand includes interest charges as well. Infosys is currently evaluating the impact of this directive on its financial statements for the quarter and fiscal year ending on March 31, 2024.

Assessment Orders and Refunds

In addition to the tax demand, Infosys also revealed that one of its branches had been instructed by tax authorities to refund ₹15 crore for the assessment year 2014-15. Simultaneously, the company anticipates receiving a tax refund of ₹6,329 crore along with a tax liability of ₹2,763 crore as per assessment orders. These refunds, including interest, apply to assessment years ranging from 2007-08 to 2018-19. Infosys is currently assessing the implications of these orders on its financial statements for the quarter and year ending March 31, 2024.

Evaluation of Financial Statements

The company emphasized that it is meticulously evaluating the consequences of these directives on its financial statements for the specified period. While acknowledging the directives’ alignment with various sections of the Income Tax Act of 1961, Infosys remains committed to ensuring transparency and compliance in its financial reporting. The company’s tax due for 2022-23, including interest, differs from its prior tax demand of ₹4 crores for 2011-12.

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