State-owned MTNL on Friday said it has received Rs 516.18 crore as tax refund for the years 2001-02 and 2003-04 from the Income-Tax Department.

The company has received refunds worth Rs 516 crore from the I-T department, including Rs 131.47 crore interest, a company statement said.

It further added the interest amount would increase the profits of the company for the financial year 2008-09.