Mphasis Limited Receives Income Tax Demand Order
Mphasis Limited announced on March 30, 2026, that it received an order and a notice of demand from the Office of the DCIT, International tax, Circle 1(1), Bangalore Income Tax Department. The order pertains to assessment year 2020-21 and includes a demand of ₹ 151.73 crores.The company was selected for scrutiny under section 133(6) of the Income Tax Act, 1961. The order primarily concerns the demand for tax deductible at source on payments made to overseas associated enterprises.
Mphasis Limited believes the claims are not maintainable and anticipates no material financial impact. Management cited favorable precedents in previous assessment years for other industry participants. The company is evaluating legal remedies and intends to file an appeal against the demand order.
The following table details the communication received:
| Sl. No. | Particulars | Details |
|---|---|---|
| 1 | Name of the listed entity | Mphasis Limited |
| 2 | Type of communication received | Order under sections 201 and 201(1A) of the Income Tax Act, 1961 along with Notice of demand of ₹ 151.73 crores under section 156 of the Income Tax Act, 1961 for assessment year 2020-21. |
| 3 | Date of receipt of communication | March 30, 2026 |
| 6 | Period for which communication would be applicable, if stated | Assessment year 2020-21 |
| 7 | Expected financial implications on the listed company, if any | The claims are not maintainable against the Company. Management is confident that there is no material financial impact to the Company. The core issue of non- deductibility of tax on similar overseas payments has favorable precedents in previous assessment years for other assessees in the industry. Further, the Company is evaluating options to avail itself of legal remedies and file an appropriate appeal against the said demand order. |
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