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 U.S. Securities and Exchange Commission.
"Infosys is in the process of filing an appeal before the Commissioner of Income Tax," the company said.
($1 = 54.8050 Indian rupees)
(Reporting By Harichandan Arakali; Editing by Prateek Chatterjee)
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