Mphasis Limited received a revised income tax demand of ₹2,417.80 crore for Assessment Year (AY) 2023-24 following a rectification order issued on October 9, 2026.

The Assistant Commissioner of Income Tax, Circle 4(1)(1), Bengaluru, issued the order under Section 154 of the Income-tax Act, 1961. The demand increased from the previously intimated ₹2,286.86 crore due to interest levied under Section 220 of the Act. The company received this communication on October 13, 2026.

Regulatory Context and Timeline

This development follows an earlier intimation dated March 26, 2026, regarding an Assessment Order passed under Section 143(3) read with Section 144B of the Income-tax Act, 1961. The initial notice of demand was issued under Section 156. The recent rectification order modifies that original assessment.

Company Response and Financial Impact

Mphasis stated it is evaluating options to avail itself of legal remedies. The company intends to file an appropriate rectification petition citing errors noted in the computation. Despite the significant increase in the demanded amount, Mphasis asserted that it does not expect any material impact on its financial statements based on the rectification order.

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information is available on the company's website.

Mphasis Ltd witnessed a marginal reduction in institutional holding as Kotak Mahindra Mutual Fund (KMMF) sold 123,216 equity shares in the open market on October 5, 2026. This transaction was disclosed to the stock exchanges under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The disposal represents a small fraction of the mutual fund's total stake, amounting to 0.0645% of the company's total voting capital. Following this sale, KMMF’s aggregate holding in the IT services major stands at 7.237%, down from 7.3015% prior to the transaction.

Transaction Details

The disclosure highlights that the sale was executed through the schemes managed by Kotak Mahindra Asset Management Company Limited. The acquirer does not belong to the promoter or promoter group. The total equity share capital of the target company remained unchanged at 19,08,73,137 equity shares of ₹10 each before and after the sale.

Regulatory Compliance

Kotak Mahindra Mutual Fund filed the necessary disclosures with BSE Limited and National Stock Exchange of India Limited. The compliance officer for Kotak Mahindra Asset Management Company Limited, Jolly Bhatt, signed the submission dated October 7, 2026. The filing confirms that no warrants, convertible securities, or other instruments entitling the holder to receive shares were involved in this specific disposal event.

What the Numbers Show

The data indicates a routine portfolio rebalancing activity rather than a significant exit strategy. With a disposal size of just 0.0645% against a substantial existing holding of over 7.3%, the mutual fund retains a dominant institutional position in the company. The negligible change in percentage ownership suggests that the fund continues to maintain its strategic exposure to the stock despite the minor sell-off.