Mphasis Tax Demand Cut After Rectification; Company Challenges Revised Order

Mphasis Ltd. on Wednesday said the Income Tax Department has revised its tax demand for the assessment year 2022–2023 to ₹5.83 billion, down from the earlier ₹11.65 billion, following rectification of certain errors.

The original demand, issued in March, included additions related to ESOP expenses and payments to overseas affiliates without tax deduction at source—both of which the company had contested as unsustainable.

While welcoming the revision, Mphasis said it continues to dispute the revised order and has filed an appeal seeking further relief.