Mastek Limited Receives Final Assessment Order from Income Tax Department for FY 2022-23; Challenges Computation Errors

Mastek Limited Receives Final Assessment Order from Income Tax Department for FY 2022-23; Challenges Computation Errors​

Mastek Limited has received a Final Assessment Order from the Income Tax Department concerning its financial standing for the Financial Year 2022-23. The assessment, which was received on May 30, 2026, includes significant additions related to both transfer pricing and domestic tax laws, alongside the initiation of penalty proceedings.

The assessment order details show a substantial increase in taxable income for the company across various heads.

Key financial components resulting from the Final Assessment Order are as follows:


In addition to the assessments, the department has initiated penalty proceedings against Mastek Limited under section 270A of the Income Tax Act.

Company's Response and Future Steps​

Mastek Limited stated that it does not currently anticipate any material financial impact from the assessed amounts. The company noted that there are several errors apparent in the Computation Sheet annexed to the order, which is being disputed. These alleged errors include the calculation of tax liability at a higher rate, non-allowance of foreign tax credit, and failure to grant credit for advance tax paid by a subsidiary that was amalgamated with Mastek Limited.

The company plans to file objections and a response with the Income Tax Appellate Authorities within the prescribed timelines to challenge the findings of the assessment.

MASTEK Stock Price Movement​

On Wednesday, Mastek Limited shares slipped by 2.95%, settling at ₹1682.3 following weakness in the market. The stock recorded a traded volume of 87,926 shares during the session.