Infosys Ltd, India's No 2 software services exporter, said on Monday it would challenge a Rs. 5.77 billion ($105.3 million) income tax demand raised by the goverment earlier this month.
The demand relates to certain tax benefits on income from software development done overseas at the clients' location and revenue from special economic zones in India, Infosys said in a statement.
It said the latest tax demand disregards a clarification by the government in January.
Infosys is also contesting similar tax demands for the fiscal years 2005 through 2008, according to a recent filing with the US Securities and Exchange Commission.
"Infosys is in the process of filing an appeal before the Commissioner of Income Tax," the company said.