Mphasis Receives ₹232 Crore Tax Notice

5 Apr 2025 , 12:11 AM

Leading Indian IT services firm Mphasis Ltd has received a tax notice of ₹232.37 crore from the Income Tax Department. The notice relates to Financial Years 2018-19 and 2019-20, and was sent on March 29, 2025, according to the firm’s latest regulatory filing.

The tax department had questioned Mphasis’s payments to its overseas subsidiaries and group enterprises, claiming that the company did not deduct tax at source (TDS) on the transactions.

Mphasis has strongly opposed the tax claim, stating that, based on a preliminary review, the demand is unjustified and without merit. The firm has stated optimism in obtaining a positive ruling at the appellate level, based on industry legal precedents where similar requests have been reversed in favor of other firms.

As per the filing, there have been no penalties, fines, or operating limitations imposed on Mphasis related to the notice. The firm also referred to the delay in notice, saying that notice was late on a Saturday and was formally received and reported on the following working day, March 31, 2025.

Mphasis is still considering its legal recourse and will appeal against the tax order through the proper channels. The firm has assured stakeholders that the tax notice should not have any material financial effect on its operations or performance.