Income Tax Department issues Rs 623 crore tax refund to MTNL

Mahanagar Telephone Nigam (MTNL), the state owned telecom firm which operates in Delhi and Mumbai, has been issued a refund order by the Income Tax Department in the case of MTNL Subscriber Deposit for the Assessment Year 2006-07. The total amount of refund receivable from the department amounts to Rs 623.18 crore, which includes interest on refund amounting to Rs 103.62 crore.

From the said refund an amount of Rs 255.06 crore has been adjusted against the tax demand for the other Assessment Years and a net cheque amounting to Rs 368.12 crore has been received by the company on August 01, 2013.

MTNL was set up by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India's key metros - Delhi and Mumbai.