India Open to Resolving $3.9 Billion Tax Dispute With Infosys

India will find ways to resolve tax disputes with major companies including Infosys Ltd. and foreign airlines, people familiar with the matter said, suggesting New Delhi is open to making accommodations to avoid hurting investor sentiment in the South Asian nation.

Authorities are exploring options to settle with companies including Infosys, which last month got hit by a demand for 324.03 billion rupees ($3.9 billion) in back taxes dating back to 2017, the people said. Authorities at the time cited non-payment of taxes on expenses incurred by overseas offices of the company, which provides IT services to banks and other ...