8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                             CURRENT REPORT PURSUANT
                          TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) August 15, 2006

                                  Syntel, Inc.
             (Exact Name of Registrant as Specified in Its Charter)

                                    Michigan
                 (State or Other Jurisdiction of Incorporation)

                                            
       000-22903                                           38-2312018
(Commission File Number)                       (IRS Employer Identification No.)



                                                          
525 E. Big Beaver Road, Suite 300, Troy, Michigan               48083
     (Address of Principal Executive Offices)                (Zip Code)



                                 (248) 619-2800
              (Registrant's Telephone Number, Including Area Code)

      _____________________________________________________________________
          (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligations of the registrant under any of the
follwing provisions (see General Instruction A.2. below):

[ ]  Written communications pursuant to Rule 425 under the Securities Act (17
     CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))


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ITEM 8.01. OTHER EVENTS.

On August 14, 2006, the Board of Directors of Syntel, Inc. (the "Company")
declared a special dividend of $1.25 per share with a record date of August 31,
2006 and a payment date of September 15, 2006. On August 15, 2006, the Company
issued a press release announcing the special dividend. A copy of the press
release is attached to this Report as Exhibit 99.1.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(c)  Exhibits.



Exhibit
 Number
- -------
       
  99.1    Press Release dated August 15, 2006.



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                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        Syntel, Inc.
                                        (Registrant)


Date August 15, 2006                    By /s/ Daniel M. Moore
                                           -------------------------------------
                                           Daniel M. Moore, Chief Administrative
                                           Officer


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EXHIBIT INDEX



Exhibit No.   Description
- -----------   -----------
           
99.1          Press Release dated August 15, 2006



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EX-99.1

                                                                    EXHIBIT 99.1

               SYNTEL DECLARES SPECIAL DIVIDEND OF $1.25 PER SHARE

TROY, Mich. - August 15, 2006 - Syntel, Inc. (NASDAQ: SYNT), a global
information technology services company, announced that on August 14, 2006, its
Board of Directors declared a special dividend of $1.25 per share payable to
Syntel shareholders of record at the close of business on August 31, 2006. The
dividend will be paid on September 15, 2006.

ABOUT SYNTEL

Syntel (NASDAQ: SYNT) is a leading global provider of custom outsourcing
solutions in a broad spectrum of information technology and information
technology-enabled services. The Company's vertical practices support the entire
Design-Build-Operate-Optimize lifecycle of systems and processes for
corporations in the Financial Services, Insurance, Retail, Health Care and
Automotive industries. The first US-based firm to launch a Global Delivery
Service to drive speed-to-market and quality advantages for its customers,
Syntel now leverages this efficient model for the majority of its Global 2000
customers. Recently named one of Forbes Magazine's "Best 200 Small Companies in
America," Syntel has more than 6,600 employees worldwide, is assessed at Level 5
of the SEI's CMMI, BS 7799-2:2002 as well as ISO 9001:2000 certified. To learn
more, visit us at:www.syntelinc.com.

SAFE HARBOR PROVISION

This news release includes forward-looking statements, including with respect to
the future level of business for Syntel, Inc. These statements are necessarily
subject to risk and uncertainty. Actual results could differ materially from
those projected in these forward-looking statements as a result of certain risk
factors set forth in the Company's Annual Form 10-K document dated March 14,
2006. Factors that could cause results to differ materially from those set forth
above include general trends and developments in the information technology
industry, which is subject to rapid technological changes, and the Company's
concentration of sales in a relatively small number of large customers, as well
as intense competition in the information technology industry, which the Company
believes will increase.