MphasiS Limited has informed the Exchange about General Updates
MPHASIS · price
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MphasiS received an Income Tax Assessment Order for Assessment Year 2023-24 from the Income Tax Department on March 25, 2026, along with a demand notice of Rs. 2,286.86 crores. The additions to taxable income relate to ESOP expenses claimed by the company, subcontractor payments to overseas associated enterprises without tax deduction at source, and differences between GST turnover and audited financial statements. Management has stated there is no material financial impact, noting that some of the issues are tax-recurring in prior years, pending in the Supreme Court, and supported by favorable High Court precedents. The company plans to file a rectification petition to fix computation errors and will also appeal the order, expressing confidence in a favorable outcome. No penalty, restriction, or sanction was imposed.
Despite the large demand size, the company's strong confidence in winning on appeal and management's view of no material impact may limit downside, but near-term uncertainty and headline risk around the Rs. 2,286.86 crore figure could pressure the stock until clarity emerges from the appellate process.