Income Taxes (Tables)

12 Months Ended

Mar. 31, 2022

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,
	2022			2021			2020
Current taxes
Domestic taxes		785			716			628
Foreign taxes		263			185			186
		1,048			901		814
Deferred taxes
Domestic taxes		48			85			(43	)
Foreign taxes		(28	)		(13	)		(14	)
		20			72			(57	)
Income tax expense		1,068			973			757

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,
	2022			2021			2020
Profit before income taxes		4,036			3,596			3,095
Enacted tax rates in India		34.94	%		34.94	%		34.94	%
Computed expected tax expense		1,410			1,256			1,083
Tax effect due to non-taxable income for Indian tax purposes		(395	)		(346	)		(383	)
Overseas taxes		132			95			98
Tax provision (reversals)		(36	)		(47	)		(52	)
Effect of differential overseas tax rates		(26	)		(17	)		(11	)
Effect of exempt non-operating income		(7	)		(5	)		(6	)
Effect of unrecognized deferred tax assets		10			1			7
Effect of non-deductible expenses		22			20			17
Impact of change in tax rate		(13	)		—			—
Others		(29	)		16			4
Income tax expense		1,068			973			757

Summary of Expiration of Unused Tax Losses

The following table provides details of expiration of unused tax losses for fiscal 2022:

(Dollars in millions)
Year
2023	27
2024	20
2025	17
2026	20
2027	7
Thereafter	501
Total	592

The following table provides details of expiration of unused tax losses for fiscal 2021:

(Dollars in millions)
Year
2022	9
2023	28
2024	19
2025	15
2026	19
Thereafter	420
Total	510

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, 2022, and March 31, 2021:

(Dollars in millions)
	As of
	March 31, 2022			March 31, 2021
Income tax assets		812		795
Current income tax liabilities		(344	)		(294	)
Net current income tax assets / (liabilities) at the end		468			501

The gross movement in the current income tax assets / (liabilities) for fiscal 2022, 2021 and 2020 is as follows:

	(Dollars in millions)
	Year ended March 31,
	2022			2021			2020
Net current income tax assets / (liabilities) at the beginning		501			515			748
Translation differences		(18	)		17			(51	)
Income tax paid		1,020			863			639
Current income tax expense		(1,048	)		(901	)		(814	)
Income tax on other comprehensive income		2			1			(3	)
Income tax benefit arising on exercise of stock options		10			6			1
Tax impact on buyback expenses		1			—			1
Additions through business combination		—			—			(6	)
Net current income tax assets / (liabilities) at the end		468			501			515

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 2022 is as follows:

										(Dollars in millions)
	Carrying value as of April 1, 2021			Changes through profit and loss			Changes through OCI			Translation difference			Carrying value as of March 31, 2022
Deferred income tax assets / (liabilities)
Property, plant and equipment		35			(13	)		—			(1	)		21
Lease liabilities		23			2			—			(1	)		24
Accrued compensation to employees		6			2			—			(1	)		7
Trade receivables		30			(1	)		—			(1	)		28
Compensated absences		68			4			—			(2	)		70
Post sales client support		16			1			—			—			17
Credits related to branch profits		48			42			—			(1	)		89
Derivative financial instruments		(8	)		4			—			1			(3	)
Intangibles		4			2			—			—			6
Intangibles arising on business combinations		(50	)		8			—			1			(41	)
Branch profit tax		(68	)		(42	)		—			—			(110	)
SEZ reinvestment reserve		(84	)		(32	)		—			4			(112	)
Others		10			3			(2	)		—			11
Total Deferred income tax assets / (liabilities)		30			(20	)		(2	)		(1	)		7

The movement in gross deferred income tax assets and liabilities (before set off) for fiscal 2021 is as follows:

													(Dollars in millions)
	Carrying value as of April 1, 2020			Changes through profit and loss			Addition through business combination			Changes through OCI			Translation difference			Carrying value as of March 31, 2021
Deferred income tax assets / (liabilities)
Property, plant and equipment		32			2			—			—			1			35
Lease liabilities		18			4			—			—			1			23
Accrued compensation to employees		7			(1	)		—			—			—			6
Trade receivables		26			3			—			—			1			30
Compensated absences		57			9			—			—			2			68
Post sales client support		15			1			—			—			–			16
Credits related to branch profits		50			(1	)		—			—			(1	)		48
Derivative financial instruments		21			(28	)		—			(1	)		—			(8	)
Intangibles		3			1			—			—			—			4
Intangibles arising on business combinations		(56	)		10			(3	)		—			(1	)		(50	)
Branch profit tax		(73	)		5			—			—			—			(68	)
SEZ reinvestment reserve		(11	)		(72	)		—			—			(1	)		(84	)
Others		14			(5	)		—			—			1			10
Total Deferred income tax assets / (liabilities)		103			(72	)		(3	)		(1	)		3			30

The movement in gross deferred income tax assets and liabilities (before set off) for fiscal 2020 is as follows:

																		(Dollars in millions)
	Carrying value as of April 1, 2019			Changes through profit and loss			Addition through business combination			Changes through OCI			Reclassification			Impact on account of IFRS 16 adoption		Translation difference			Carrying value as of March 31, 2020
Deferred income tax assets / (liabilities)
Property, plant and equipment		38			(3	)		—			—			—			—		(3	)		32
Lease liabilities		—			10			—			—			8			1		(1	)		18
Accrued compensation to employees		4			3			—			—			—			—		—			7
Trade receivables		26			3			—			—			—			—		(3	)		26
Compensated absences		57			5			—			—			—			—		(5	)		57
Post sales client support		15			1			—			—			—			—		(1	)		15
Credits related to branch profits		49			1			—			—			—			—		—			50
Derivative financial instruments		(15	)		35			—			2			—			—		(1	)		21
Intangibles		2			—			—			—			—			—		1			3
Intangibles arising on business combinations		(19	)		6			(45	)		—			—			—		2			(56	)
Branch profit tax		(78	)		4			—			—			—			—		1			(73	)
SEZ reinvestment reserve		—			(12	)		—			—			—			—		1			(11	)
Others		22			4			1			(1	)		(8	)		—		(4	)		14
Total Deferred income tax assets / (liabilities)		101			57			(44	)		1			—			1		(13	)		103

The deferred income tax assets and liabilities (after set off) is as follows:

	(Dollars in millions)
	As of
	March 31, 2022			March 31, 2021
Deferred income tax assets after set off	160			150
Deferred income tax liabilities after set off		(153	)		(120	)