Income Taxes (Tables)

12 Months Ended

Mar. 31, 2025

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,
		2025				2024				2023
Current taxes
Domestic taxes			1,089				768				830
Foreign taxes			346				247				323
			1,435				1,015				1,153
Deferred taxes
Domestic taxes			(110	)			180				54
Foreign taxes			(40	)			(18	)			(65	)
			(150	)			162				(11	)
Income tax expense			1,285				1,177				1,142

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,
		2025				2024				2023
Profit before income taxes			4,447				4,346				4,125
Enacted tax rates in India			25.17	%			34.94	%			34.94	%
Computed expected tax expense			1,119				1,519				1,442
Tax effect due to non-taxable income for Indian tax purposes			—				(363	)			(362	)
Overseas taxes			131				136				132
Tax provision (reversals)			16				(113	)			(13	)
Effect of differential tax rates			(9	)			(69	)			(41	)
Effect of exempt non-operating income			(4	)			(6	)			(6	)
Effect of unrecognized deferred tax assets			19				25				14
Effect of non-deductible expenses			33				20				19
Others			(20	)			28				(43	)
Income tax expense			1,285				1,177				1,142

Summary of Expiration of Unused Tax Losses

The following table provides details of expiration of unused tax losses for fiscal 2025:


(Dollars in millions)
Year
2026			25
2027			16
2028			60
2029			80
2030			52
Thereafter			305
Total			538

The following table provides details of expiration of unused tax losses for fiscal 2024:


(Dollars in millions)
Year
2025			2
2026			24
2027			15
2028			56
2029			82
Thereafter			381
Total			560

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, 2025, and March 31, 2024:


(Dollars in millions)
		As of
		March 31, 2025				March 31, 2024
Income tax assets			538				1,132
Current income tax liabilities			(567	)			(430	)
Net current income tax assets / (liabilities) at the end			(29	)			702

The gross movement in the current income tax assets / (liabilities) for fiscal 2025, 2024 and 2023 is as follows:


		(Dollars in millions)
		Year ended March 31,
		2025				2024				2023
Net current income tax assets / (liabilities) at the beginning			702				374				468
Income tax paid (net)			662				1,114				1,088
Current income tax expense			(1,435	)			(1,015	)			(1,153	)
Interest receivable on income tax refund			39				234				—
Income tax on other comprehensive income			2				—				(2	)
Income tax benefit arising on exercise of stock options			4				—				6
Tax impact on buyback expenses			—				—				1
Additions through business combination			—				—				(2	)
Translation differences			(3	)			(5	)			(32	)
Net current income tax assets / (liabilities) at the end			(29	)			702				374

Summary of Movement in Gross Deferred Income Tax Assets / Liabilities

The movement in gross deferred income tax assets / liabilities (before set off) for fiscal 2025 is as follows:


																		(Dollars in millions)
		Carrying value as of April 1, 2024				Changes through profit and loss				Addition through business combination				Changes through OCI				Translation difference				Carrying value as of March 31, 2025
Deferred income tax assets / (liabilities)
Property, plant and equipment			29				(1	)			—				—				—				28
Lease liabilities			24				(5	)			—				—				(1	)			18
Accrued compensation to employees			7				2				—				—				—				9
Trade receivables			27				(1	)			—				—				—				26
Compensated absences			75				9				—				—				(1	)			83
Post sales client support			7				1				—				—				—				8
Credits related to branch profits			97				(4	)			—				—				—				93
Derivative financial instruments			(2	)			(3	)			—				1				—				(4	)
Intangibles			7				1				—				—				—				8
Intangibles arising on business combinations			(34	)			17				(63	)			—				—				(80	)
Branch profit tax			(129	)			5				—				—				—				(124	)
SEZ reinvestment reserve			(239	)			67				—				—				4				(168	)
Interest receivable on income tax refund			(58	)			49				—				—				1				(8	)
Others			28				13				1				(3	)			—				39
Total Deferred income tax assets / (liabilities)			(161	)			150				(62	)			(2	)			3				(72	)

The movement in gross deferred income tax assets / liabilities (before set off) for fiscal 2024 is as follows:


																		(Dollars in millions)
		Carrying value as of April 1, 2023				Changes through profit and loss				Addition through business combination				Changes through OCI				Translation difference				Carrying value as of March 31, 2024
Deferred income tax assets / (liabilities)
Property, plant and equipment			21				9				—				—				(1	)			29
Lease liabilities			27				(3	)			—				—				—				24
Accrued compensation to employees			8				(1	)			—				—				—				7
Trade receivables			32				(5	)			—				—				—				27
Compensated absences			70				6				—				—				(1	)			75
Post sales client support			30				(23	)			—				—				—				7
Credits related to branch profits			87				10				—				—								97
Derivative financial instruments			-				(1	)			—				(1	)			—				(2	)
Intangibles			7				—				—				—				—				7
Intangibles arising on business combinations			(42	)			8				-				—				—				(34	)
Branch profit tax			(105	)			(24	)			—				—								(129	)
SEZ reinvestment reserve			(164	)			(78	)			—				—				3				(239	)
Interest receivable on income tax refund			-				(58	)			—				—				—				(58	)
Others			32				(2	)			—				(1	)			(1	)			28
Total Deferred income tax assets / (liabilities)			3				(162	)			—				(2	)			—				(161	)

The movement in gross deferred income tax assets / liabilities (before set off) for fiscal 2023 is as follows:


																		(Dollars in millions)
		Carrying value as of April 1, 2022				Changes through profit and loss				Addition through business combination				Changes through OCI				Translation difference				Carrying value as of March 31, 2023
Deferred income tax assets / (liabilities)
Property, plant and equipment			21				2				—				—				(2	)			21
Lease liabilities			24				6				—				—				(3	)			27
Accrued compensation to employees			7				2				—				—				(1	)			8
Trade receivables			28				6				—				—				(2	)			32
Compensated absences			70				6				—				—				(6	)			70
Post sales client support			17				14				—				—				(1	)			30
Credits related to branch profits			89				(2	)			—				—				—				87
Derivative financial instruments			(3	)			3				—				—				—				-
Intangibles			6				1				—				—				—				7
Intangibles arising on business combinations			(41	)			9				(10	)			—				—				(42	)
Branch profit tax			(110	)			5				—				—				—				(105	)
SEZ reinvestment reserve			(112	)			(62	)			—				—				10				(164	)
Others			11				21				—				—				—				32
Total Deferred income tax assets / (liabilities)			7				11				(10	)			—				(5	)			3

The deferred income tax assets and liabilities is as follows:


		(Dollars in millions)
		As of
		March 31, 2025				March 31, 2024
Deferred income tax assets after set off		130				55
Deferred income tax liabilities after set off			(202	)			(216	)