Infosys Limited, one of the country’s largest IT companies, will get a total tax refund of Rs 6,329 crore from the Income Tax Department. The company will receive this as windfall tax refund. Now the question is that till now you have heard the name of GST refund, what is this windfall refund. To understand this, we have to understand what windfall tax is and also get information about which companies it is imposed on.
Which types of companies are subject to windfall tax?
Windfall tax is imposed on such companies or industries which get immediate benefits under certain circumstances. Indian oil companies are a good example of this. International crude oil prices rose after Russia’s attack on Ukraine. Oil companies got a lot of benefit from this. Due to the Russia-Ukraine war, oil companies were reaping huge profits, hence windfall tax was imposed on them. Not only India, Italy and UK also imposed this tax on their energy companies.
If we look at the case of Infosys, tax would have been collected on it due to the sudden profit, but now when the company has submitted its details to the government, in which it would not have been able to be included in the sudden profit, then now the government will refund it.
This is the tax rate
Let us tell you that the government has reduced the prices of crude oil in the international market to its lowest level in six months. In view of this, huge relief has been given to crude oil exporters. The government has reduced the windfall tax on export of crude oil from Rs 13300 to Rs 10500 per tonne. Along with this, the export duty applicable on diesel has been reduced to Rs 5 per liter. Earlier it was increased from Rs 7 per liter to Rs 13.50 per litre. The new rates issued by the government have come into effect from midnight on 17th September.
