Mphasis Limited has received a notice of demand amounting to ₹1,164.77 crore under Section 156 of the Income Tax Act, 1961, following an assessment order issued under Section 143(3) read with Section 144B. The notice, received on March 7, 2025, was issued by the Assessment Unit of the Income Tax Department for the assessment year 2022-23.
According to the company, the tax demand stems from additions made to taxable income, primarily related to allowances claimed on ESOP expenses and subcontractor payments made to overseas associated enterprises without tax deduction at source. However, Mphasis has stated that these claims are not maintainable and that there are favorable precedents from previous assessment years.
The company is preparing to file a rectification petition and is evaluating legal remedies, including an appeal against the demand order. Management remains confident that the notice will not have a material financial impact on the company.
Mphasis has assured that the information has been disclosed as per SEBI regulations and is also available on its official website.
