Indian IT Firms Face Tax Evasion Crackdown

Indian authorities are set to issue more tax notices to major IT firms after Infosys was hit with a $4 billion tax demand for alleged evasion. This probe could widen to include other firms in the sector. Infosys claims compliance, but experts foresee a legal battle ahead for multiple companies.

Indian authorities may extend tax notices to additional IT service firms amidst allegations of evasion, following a $4 billion demand against Infosys, a government source disclosed Thursday.

Infosys has received 'pre-show cause' notices and asserts it has paid due taxes in compliance with all regulations, the company stated.

Tax experts foresee an expansive investigative wake, with similar notices likely for other multinational companies in the IT sector, potentially leading to widespread legal challenges.

(With inputs from agencies.)