Company: INFY
Filing Date: 2025-07-01
Form Type: 20-F
Source: 0000950170-25-091925
Chunk: 96

Company: Infosys Ltd
Filing Date: 2025-07-01
Form: 20-F
Item: Item 5
Chunk 96
---
 Loss. Also, an amount aggregating to $196 million was reduced from contingent liabilities.
As of March 31, 2025, claims against the Group not acknowledged as debts from the Income tax authorities amounted to $226 million (₹1,933 crore).
As of March 31, 2024, claims against the Group not acknowledged as debts from the Income tax authorities amounted to $335 million (₹2,794 crore).
The amount paid to statutory authorities against the tax claims amounted to $491 million (₹4,199 crore) and $1,048 million (₹8,743 crore) as of March 31, 2025, and March 31, 2024, respectively.

The claims against the Group primarily represent demands arising on completion of assessment proceedings under the Income Tax Act, 1961. These claims are on account of issues of disallowance of expenditure towards software being held as capital in nature and payments made to Associated Enterprises held as liable for withholding of taxes, among other issues. These matters are pending before various Income Tax Authorities and the Group's management including its tax advisors expect that its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Group's financial position and results of operations.

The Company’s Advanced Pricing Arrangement (APA) with the Internal Revenue Service (IRS) for U.S. branch income tax expired in March 2021. The Company has applied for renewal of APA and currently the U.S. taxable income is based on the Company’s best estimate determined based on the expected value method.

Net profit
The following table sets forth our net profit for fiscal 2025 and fiscal 2024:

                              (Dollars in millions)                                            
                              Fiscal 2025               Fiscal 2024               Change       
Net profit                            3,162                     3,169                   (7    )
As a percentage of revenues   16.4            %         17.1            %                      

The decrease in net profit as a percentage of revenues for fiscal 2025 as compared to fiscal 2024 was primarily attributable to a decrease in other income as a percentage of revenue by 0.8%, and an increase in tax expense as a percentage of revenue by 0.4% which is partially offset by an increase in operating profit by 0.4%.
Sensitivity analysis for defined benefit plans for Fiscal 2025 over Fiscal 2024
We provide for gratuity, a defined benefit retirement plan (Gr