Infosys Ltd said the income tax department has reduced its tax liability by Rs 1,258 crore to Rs 1,505 crore for the assessment year 2022-23.
On March 31, the company had said it faces a significant tax liability of Rs 2,763 crore, according to assessment orders.
India’s second-largest software services provider informed the exchanges on May 2 that it does not expect any impact on the financial statement from such rectification.
In the March order, the Bengaluru-based company had also said it is set to receive a tax refund of Rs 6,329 crore from the income tax department. These orders are as per various sections of the Income Tax Act, 1961.
In financial year 2023-24, the company reported consolidated income tax expenses of Rs 9,740 crore, compared to Rs 7,214 crore in the previous fiscal year.
In the March 30 order, Infosys said the impact of these orders isn’t limited to the parent company; its subsidiaries have also been served assessment orders by the income tax department. These orders collectively entail a tax demand of Rs 277 crore, inclusive of interest, for assessment years spanning 2018-19 and 2021-23.
Infosys had said it was evaluating the implications of these orders on its financial statements and also “evaluating filing appeals against these orders.”
Also read: Infosys Q4 FY24: Disappointing quarter, attractive valuation
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