IT services firm Mphasis has received a ₹232.37 crore tax demand from the Income Tax Department for the financial years 2018-19 and 2019-20. The company says it will challenge the order and expects no major financial impact.
As per the company regulatory filing, the tax department issued the notice on March 29, 2025, after reviewing payments made by Mphasis to its foreign subsidiaries and associated enterprises. The department claims that the company should have deducted tax at source (TDS) on these payments.
Mphasis, however, believes the demand is unjustified. “The company, based on its preliminary assessment, believes that it has a good case on merits and is confident of a favorable outcome at the appellate stage,” the company said in the filing. It also pointed out that similar tax disputes in the industry have previously been ruled in favor of companies.
The company clarified that no penalties or restrictions have been imposed. It also acknowledged a short delay in disclosing the notice, explaining that it was received late on a Saturday and was filed on the next working day, March 31, 2025.
Mphasis is now reviewing its legal options and plans to file an appeal to contest the tax demand.
Mphasis shares closed in the red at ₹2,234.00, down 5.90% (₹140.05) from the previous close.
Source from: https://www.cnbctv18.com/business/companies/mphasis-share-price-tax-demand-232-crore-appeal-19584652.htm
