Mastek Limited Receives Income Tax Final Assessment Order for FY23 with ₹123.58 Crore Addition
Mastek Limited received a Final Assessment Order from the Income Tax Department for FY23. The order includes a total addition of ₹1,23,58,26,194, comprising ₹90.95 crore for transfer pricing and ₹32.63 crore under domestic tax laws. Penalty proceedings under Section 270A have also been initiated. The company expects no material financial impact due to perceived errors in the computation.
While the company states no material financial impact, the assessment order involves a substantial amount of ₹123.58 crore. The initiation of penalty proceedings and the company's intent to contest the order suggest a potential for future financial implications, warranting a medium impact assessment.
The company has received a significant addition in its tax assessment, which could be perceived negatively. However, the company believes there are errors in the computation and expects no material financial impact, thus maintaining a neutral sentiment.
Mastek Limited has received a Final Assessment Order from the Income Tax Department for the Financial Year 2022-23, as per Regulation 30 of SEBI Listing Regulations.
The order includes a transfer pricing addition of ₹90,95,38,080 and an addition under domestic tax laws of ₹32,62,88,114, totaling ₹1,23,58,26,194.
Additionally, the department has initiated penalty proceedings under Section 270A. The company received this communication on May 30, 2026. Mastek Limited believes there are certain errors in the computation sheet annexed to the order, including a higher tax liability rate, non-allowance of foreign tax credit, and non-grant of credit for advance tax paid by a subsidiary. Consequently, the company does not foresee any material financial implication at this stage and intends to file objections with the Income Tax Appellate Authorities within the prescribed timelines.
The company has also informed that there will be no impact on its financials, operations, or other activities due to this order.
What to do with a filing like this
Mastek Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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