Infosys jumps 2% on hopes of Rs 6,329 cr tax refund

Over the weekend, Infosys received multiple orders from IT department with regards to tax demands and potential refund.

Shares of Infosys jumped 2 per cent to a high of Rs 1,528 in Monday's intra-day deals after the IT major said it expected a tax refund of up to Rs 6,329 crore.

At 09:45 am, the stock quoted with a gain of 1 per cent at Rs 1,514 on trades of around 92,000 shares on the BSE. Meanwhile, the S&P BSE Sensex was up 0.7 per cent at 74,198.

At present levels, the stock trades almost 12.5 per cent lower when compared to its 52-week high of Rs 1,731.

Infosys in an exchange filing on Saturday said, the company received orders from the Income Tax Department 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 Rs 6,329 crore (including interest). The company was in the process of evaluating the implications of these orders on the financial statements for the quarter and year ending March 31, 2024, the release stated.

Further, the company also received orders for assessment year 22-23 with a tax demand of Rs 2,763 crore (including interest), and tax demand of Rs 4 crore for the assessment year 11-12 (including interest).

That apart, the company's subsidiaries have received tax demand of up to Rs 277 crore; whereas one arm has received an order for tax refund of Rs 14 crore.

Meanwhile, the New York State Department of Taxation & Finance, USA has imposed a penalty of $2,424.08 and the Internal Revenue Services, Cincinnati, USA imposed a penalty of $26,095.42 for late filing of Patient-Centered Outcome Research (PCOR) return for the quarter ended June 30, 2023.

Last week, the company also announced a collaboration with Handelsblatt Media Group to make complex reports on global economic and finance issues more accessible and easily consumable for the public leveraging generative AI.

Infosys is scheduled to file its March quarter results on April 18, 2024.