What is the core issue in the tax order?

The Income Tax Department's final assessment for FY23 proposes a **₹123.58 crore** addition to Mastek's income. The adjustment comes from transfer pricing and domestic tax law interpretations.

How big is this for Mastek's finances?

The addition is about **3.3%** of the company's **~₹3,700 crore** annual revenue. Even if the full amount were upheld as a tax liability, it would fall well below **20%** of the company's annual profit after tax, missing a standard materiality threshold.

What is Mastek's response?

Management has identified specific errors in the department's order, including incorrect tax rates and omitted foreign tax credits. The company's stance suggests it will pursue rectification or appeal.

Is this a one-time hit or a continuing issue?

This is a final order for a single past fiscal year (FY22-23). The immediate financial risk is mitigated by the small size relative to the company and the company's stated grounds for appeal.

Order Wins · IT - Software · Mid cap

Mastek's ₹123.58 cr tax bill is 3.3% of revenue. Management says the math is wrong.

The Income Tax Department's final order for FY23 proposes a ₹123.58 cr addition. Mastek says the department made clerical errors.

MASTEK By Tipsheet Editorial 3 Jun 2026 · 10:07 PM IST Verify on BSE · NSE

Mkt cap₹5,215 cr

P/E12.91×

ROE15.27%

Debt / eq.0.23

Div yld1.42%

₹123.58 cr Total addition to income proposed in the FY23 tax order.

What's new

Mastek received a final assessment order for FY23 proposing a ₹123.58 cr addition to income.
The order stems from transfer pricing and domestic tax adjustments.
Mastek claims the department made clerical and computation errors in the calculation.

Why this matters

The proposed addition is modest for a company with ₹5,208 cr in market capitalization and ~₹3,700 cr in annual revenue. The company's specific error claims make a successful appeal likely. This is a regulatory process, not a financial shock.

What we're watching

Mastek's appeal and the specific clerical errors it cites in the department's order.
Whether the final liability is reduced through rectification.
The timeline for resolution through the appellate process.

The full read

Mastek got a final tax bill for FY23 proposing a ₹123.58 crore addition to its income. The amount, driven by transfer pricing adjustments, is ~3.3% of its ~₹3,700 crore revenue and a small slice of its ₹5,208 crore market value. The company's immediate rebuttal: Mastek says the department's order contains specific errors, like wrong tax rates and missing credits. That points toward a dispute, not a payment. For a company of this size, the order is procedurally important but financially light. The open question is how quickly the errors are corrected.

Questions answered

What is the core issue in the tax order?: The Income Tax Department's final assessment for FY23 proposes a ₹123.58 crore addition to Mastek's income. The adjustment comes from transfer pricing and domestic tax law interpretations.
How big is this for Mastek's finances?: The addition is about 3.3% of the company's ~₹3,700 crore annual revenue. Even if the full amount were upheld as a tax liability, it would fall well below 20% of the company's annual profit after tax, missing a standard materiality threshold.
What is Mastek's response?: Management has identified specific errors in the department's order, including incorrect tax rates and omitted foreign tax credits. The company's stance suggests it will pursue rectification or appeal.
Is this a one-time hit or a continuing issue?: This is a final order for a single past fiscal year (FY22-23). The immediate financial risk is mitigated by the small size relative to the company and the company's stated grounds for appeal.

Mentioned: Income Tax Department · ₹123.58 cr · FY 2022-23

Primary source BSE · NSE

An independent reading of the company's own disclosure — the primary filing above is the final word.