Info Edge Receives ₹17.05 Crore Income Tax Demand For AY2023-24

Naukri.com owner Info Edge (India) Limited announced on Wednesday, March 26, that it has received an income tax demand of ₹17.05 crore under Section 143(3) of the Income Tax Act, 1961, for the assessment year 2023-24.

The company disclosed the receipt of the Assessment Order and Notice of Demand dated March 25, 2025, from the Assessment Unit of the Income Tax Department in a regulatory filing.

Reason for the Tax Demand

The demand primarily arises due to the disallowance of employee stock option plan (ESOP) expenses claimed by Info Edge. The order was received on March 25, 2025.

Company’s Response and Appeal Consideration

Info Edge is currently reviewing the assessment order and evaluating potential legal actions, including the possibility of filing an appeal. The company noted that similar ESOP-related disallowances for the assessment years 2016-17 and 2022-23 are still pending before the Commissioner of Income Tax (CIT) appeal.

However, Info Edge highlighted that in past cases, particularly for the assessment year 2007-08, the Income Tax Appellate Tribunal (ITAT) had ruled in its favour.

No Material Financial Impact

Despite the tax demand, Info Edge reassured stakeholders that the order would not have any material impact on its financial operations or activities in the current financial year. “There is no material impact on the financials of the company, no impact on operations or other activities of the company relating to the order passed for the said assessment year in the current financial year,” the company stated.

Stock Performance

On March 26, 2025, Info Edge share price ended 1.25% lower at ₹7,049.60. Info Edge’s share price reached a 52-week high of ₹9,194.95, and a 52-week low of ₹5,156.00. As per BSE, the total traded volume for the stock stood at 2,212 shares with a turnover of ₹1.58 crores.

According to exchange data, Info Edge shares are trading at a price-to-earnings (P/E) ratio of 125.26x, based on its trailing 12-month earnings per share (EPS) of ₹56.28, and a price-to-book (P/B) ratio of 2.64.

Conclusion

Info Edge (India) Ltd has received a ₹17.05 crore tax demand for AY2023-24 due to ESOP expense disallowance.

The company is reviewing the order and may appeal, citing favourable past ITAT rulings. While similar cases remain pending, Info Edge assures no material financial or operational impact. The firm remains confident in its legal position and will pursue appropriate remedies to resolve the matter.

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