Income Taxes (Tables)

12 Months Ended

Mar. 31, 2018

Major Components Of Tax Expense Income [Abstract]

Schedule of Income Tax Expense

Income tax expense in the consolidated statement of comprehensive income comprises:

	(Dollars in millions)
	Year ended March 31,
	2018	2017	2016
Current taxes
Domestic taxes	721	616	642
Foreign taxes	(12)	226	167
	709	842	809
Deferred taxes
Domestic taxes	(80)	(1)	3
Foreign taxes	28	(7)	(13)
	(52)	(8)	(10)
Income tax expense	657	834	799

Summary of Reconciliation of Income Tax Provision to Amount Computed by Applying Statutory Income Tax Rate to Income Before Income Taxes

A reconciliation of the income tax provision to the amount computed by applying the statutory income tax rate to the income before income taxes is summarized below:

	(Dollars in millions)
	Year ended March 31,
	2018	2017	2016
Profit before income taxes	3,143	2,974	2,851
Enacted tax rates in India	34.61%	34.61%	34.61%
Computed expected tax expense	1,088	1,029	987
Tax effect due to non-taxable income for Indian tax purposes	(321)	(295)	(268)
Overseas taxes	109	112	109
Tax provision (reversals)	(253)	(23)	(47)
Effect of differential overseas tax rates	8	10	1
Effect of exempt non-operating income	(10)	(10)	(13)
Effect of unrecognized deferred tax assets	29	14	9
Effect of non-deductible expenses	9	4	30
Branch profit tax (net of credits)	(32)	–	–
Subsidiary dividend distribution tax	27	–	–
Others	3	(7)	(9)
Income tax expense	657	834	799

Summary of Expiration of Unused Tax Losses

The following table provides details of expiration of unused tax losses:

Year	in USD millions
2019		14
2020		37
2021		12
2022		21
2023		39
Thereafter		174
Total		297

Summary of Income Tax Assets and Income Tax Liabilities

The following table provides the details of income tax assets and income tax liabilities as of March 31, 2018 and March 31, 2017:

	As of
	March 31, 2018			March 31, 2017
Income tax assets	931				881
Current income tax liabilities		(314	)		(599	)
Net current income tax assets / (liabilities) at the end		617			282

The gross movement in the current income tax asset / (liability) for fiscal 2018, 2017 and 2016 is as follows:

	(Dollars in millions)
	Year ended March 31,
	2018	2017	2016
Net current income tax asset / (liability) at the beginning	282	274	203
Translation differences	(8)	6	(12)
Income tax paid	1,059	843	892
Current income tax expense (Refer to Note 2.17)	(709)	(842)	(809)
Income tax on other comprehensive income	(2)	1	–
Reclassified under assets held for sale (refer note no 2.9)	(5)	–	–
Net current income tax asset / (liability) at the end	617	282	274

Summary of Movement in Gross Deferred Income Tax Assets and Liabilities

The movement in gross deferred income tax assets and liabilities (before set off) for fiscal 2018 is as follows:

												(Dollars in millions)
	Carrying value as of April 1, 2017			Changes through profit and loss			Changes through OCI		Reclassified as Held for Sale			Translation difference			Carrying value as of March 31, 2018
Deferred income tax assets
Property, plant and equipment		21			12			–		–			–			33
Computer software		6			(6	)		–		–			–			–
Accrued compensation to employees		9			(8	)		–		–			1			2
Trade receivables		21			1			–		–			–			22
Compensated absences		58			–			–		–			(2	)		56
Post sales client support		15			–			–		–			–			15
Derivative financial instruments		–			2			–		–			–			2
Intangibles		3			(3	)		–		–			1			1
Credits related to branch profits		–			53			–		–			(1	)		52
Others		22			(2	)		–		(5	)		3			18
		155			49			–		(5	)		2			201
Deferred income tax liabilities
Intangible asset		(32	)		13			–		13			–			(6	)
Branch profit tax		(50	)		(25	)		–		–			(2	)		(77	)
Derivative financial instruments		(11	)		11			–		–			–			–
Others		(11	)		4			2		–			1			(4	)
		(104	)		3			2		13			(1	)		(87	)

The movement in gross deferred income tax assets and liabilities (before set off) for fiscal 2017 is as follows:

										(Dollars in millions)
	Carrying value as of April 1, 2016			Changes through profit and loss			Changes through OCI			Translation difference			Carrying value as of March 31, 2017
Deferred income tax assets
Property, plant and equipment		27			(6	)		–			–			21
Computer software		8			(2	)		–			–			6
Accrued compensation to employees		10			–			–			(1	)		9
Trade receivables		13			8			–			–			21
Compensated absences		59			(3	)		–			2			58
Post sales client support		12			3			–			–			15
Intangibles		1			2			–			–			3
Others		7			14			–			1			22
		137			16			–			2			155
Deferred income tax liabilities
Intangible asset		(38	)		6			–			–			(32	)
Branch profit tax		(51	)		–			–			1			(50	)
Derivative financial instruments		–			(11	)		–			–			(11	)
Others *		(6	)		(3	)		(1	)		(1	)		(11	)
		(95	)		(8	)		(1	)		–			(104	)

* included in others is the impact on adoption of IFRS 9 of $1 million

The movement in gross deferred income tax assets and liabilities (before set off) for fiscal 2016 is as follows:

													(Dollars in millions)
	Carrying value as of April 1, 2015			Changes through profit and loss			Changes through OCI			Additions through Business Combinations			Translation difference			Carrying value as of March 31, 2016
Deferred income tax assets
Property, plant and equipment		38			(9	)		–			–			(2	)		27
Computer software		8			–			–			–			–			8
Accrued compensation to employees		8			3			–			–			(1	)		10
Trade receivables		17			(4	)		–			–			–			13
Compensated absences		48			14			–			–			(3	)		59
Post sales client support		12			–			–			–			–			12
Intangibles		–			1			–			–			–			1
Others		5			3			–			–			(1	)		7
		136			8			–			–			(7	)		137
Deferred income tax liabilities
Intangible asset		(25	)		7			–			(20	)		–			(38	)
Branch profit tax		(51	)		–			–			–			–			(51	)
Others		–			(5	)		(1	)		–			–			(6	)
		(76	)		2			(1	)		(20	)		–			(95	)

	(Dollars in millions)
	As of
	March 31, 2018	March 31, 2017
Deferred income tax assets after set off	196	83
Deferred income tax liabilities after set off	(82)	(32)