Income Tax

12 Months Ended

Mar. 31, 2024

Income Tax [Abstract]

INCOME TAX

NOTE 5 — INCOME TAX

Income tax consist of the following for the year ended March 31, 2024:

	For the year ended March 31, 2024		For the year ended March 31, 2023
	(US$)		(US$)
Current tax expenses	$	119,238	$	387,407
Deferred tax (benefit)/expense		28,241		135,640
Income tax expense	$	147,479	$	523,047

Consolidated statement of comprehensive income

	For the year ended March 31, 2024			For the year ended March 31, 2023
	(US$)			(US$)
Deferred tax related to item charged directly to equity:
Net loss/(gain) on translations of foreign subsidiaries	$	(27,701	)	$	(72,663	)
Total	$	(27,701	)	$	(72,663	)

Deferred tax related to the translations of foreign operations consists of Lytus Technologies Private Limited and Sri Sai from INR to USD have been calculated at the rate of the jurisdiction in which a subsidiary situated i.e. in India (at the rate of 25.17% for the years ended March 31, 2024 and 2023, respectively).

Accounting for Income Taxes

British Virgin Islands

Under the current laws of BVI, Lytus Technology Holdings Ptv. Ltd. is not subject to tax on income or capital gains. In addition, payments of dividends by the Company to their shareholders are not subject to withholding tax in the BVI.

India (subsidiary in India)

Income tax expense represents the sum of the current tax and deferred tax.

The charge for current tax is based on the result for the period adjusted for items which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the reporting date.

Current and deferred tax is recognized in the income statement unless the item to which the tax relates was recognized outside the income statement being other comprehensive income or equity. The tax associated with such an item is also recognized in other comprehensive income or equity respectively.

	As of March 31, 2024			As of March 31, 2023
	(US$)			(US$)
Accounting profit before tax	$	800,653		$	(1,112,790	)
Less: Net profit/(loss) of the Lytus BVI and non-taxable loss/(profit) of GHSI		114,296			(3,134,953	)
Net Accounting profit		686,357			2,022,163
At Indian statutory income tax rate of 25.17%		224,878			508,979
Accelerated tax depreciation		(131,667	)		(139,328	)
Others mainly timing differences		19,728			8,038
Exchange differences		6,299			(9,718	)
Current income tax expense reported on consolidated statements of profit or loss and other comprehensive income	$	119,238			387,407

Reflected in the financial statement of financial position as follows:

	As of March 31, 2024			As of March 31, 2023
	(US$)			(US$)
Opening balance	$	399,174			3,305,308
Acquired in business combination		—			121,319
Current income tax accrual		119,238		$	387,407
Adjustment on account of modification		—			(3,399,850	)
Exchange rate difference		(3,565	)		(15,010	)
Taxes paid/adjustments		(354,581	)		—
Closing balance of current income taxes payables	$	160,266		$	399,174

Deferred tax

Deferred tax relates to the following temporary differences:

	As of March 31, 2024		As of March 31, 2023
	(US$)		(US$)
Deferred tax assets
Temporary timing differences	$	70,463	$	(22,878	)
Foreign currency translations of foreign subsidiary		—		126,624
Total deferred tax assets	$	70,463	$	103,746
Deferred tax liabilities
Accelerated depreciation on tangible and intangible assets	$	498,112	$	1,625,271
Acquired in business combination		—		295,177
Temporary differences		—		9,929
On translations of foreign subsidiary operations		3,381		72,663
Reversed in deconsolidation/Modification of contracts		—		(1,533,644	)
Exchange rate difference		—		(8,963	)
Total deferred tax liabilities	$	494,731	$	478,359

Reconciliation of deferred tax (liabilities)/asset net:

	As of March 31, 2024			As of March 31, 2023
	(US$)			(US$)
Opening balance	$	(374,613	)	$	(1,407,020	)
Tax expense during the period recognised in profit & loss		(131,677	)		(135,640	)
Exchange rate difference		(6,134	)		(37,613	)
Tax expenses during the period recognised in other comprehensive income		39,771			(72,663	)
Temporary timing differences		31,066			(9,929	)
Reversed on deconsolidation of a subsidiary		(146,715	)		(1,510,767	)
Acquired in business combination		—			(295,177	)
Total deferred tax (liabilities)/assets net	$	(424,268	)	$	(374,613	)