Infosys, India’s second-largest software services provider, is poised to receive a significant tax refund totaling Rs 6,329 crore from the income tax department. Nevertheless, the company is confronted with a substantial tax liability of Rs 2,763 crore, as delineated in the assessment orders.

In a statement released to the exchanges, Infosys stated, “The Company is currently assessing the ramifications of these orders on the financial statements for the quarter and fiscal year ending March 31, 2024.”

The assessment orders are in accordance with various sections of the Income Tax Act, 1961. The refunds, inclusive of interest, correspond to assessment years spanning from 2007-08 to 2018-19.

Contrarily, the tax liability relates to the assessment year 2022-23, inclusive of interest. Furthermore, for the assessment year 2011-12, Infosys faces a tax demand of Rs 4 crore, inclusive of interest.

In the fiscal year 2022-23, the company reported consolidated income tax expenses amounting to Rs 9,214 crore, compared to Rs 7,964 crore in the preceding fiscal year.

According to Infosys, the income tax expense comprises both current and deferred income tax.

In the quarter concluding in December, the company recorded an income tax expense exceeding Rs 2,500 crore.

The impact of these orders extends beyond the parent company; Infosys subsidiaries have also received assessment orders from the income tax department. These orders collectively entail a tax demand of Rs 277 crore, inclusive of interest, for assessment years spanning from 2018-19 to 2021-23.

The Bengaluru-based company stated it is assessing the implications of these orders on its financial statements and is also contemplating filing appeals against them.

Furthermore, a unit of Infosys is set to receive refund orders under various sections of the same law, amounting to Rs 14 crore, for assessment years 2007-09 and 2016-17.

“The current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date,” Infosys iterates in its quarterly notes.