Mphasis tax demand significantly cut to ₹108.56 crore

Mphasis announced on September 27, 2025, that it has received a rectification order under Section 154 of the Income Tax Act, 1961, pertaining to assessment years 2018-19 and 2019-20. This order reduces the previously reported tax demand from ₹232.37 crore to ₹108.56 crore, resulting in a net reduction of ₹123.82 crore. This development follows an earlier intimation on March 31, 2025, regarding the initial tax demand.

The initial demand of ₹232.37 crore was issued under Section 156 of the Income-Tax Act, 1961, by the deputy commissioner of income tax, International Taxation Circle 1(1) Bangalore. The rectification order from the same authority, dated September 26, 2025, provides substantial relief by correcting mistakes apparent from the record in the rectification application.

Despite this significant reduction, Mphasis is contesting the remaining reduced tax demand before appellate authorities and anticipates further substantial relief. The company has made the required disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/1055 dated November 11, 2024.