Income Taxes (Tables)

12 Months Ended

Mar. 31, 2026

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,
		2026				2025				2024
Current taxes
Domestic taxes			977				1,089				768
Foreign taxes			352				346				247
			1,329				1,435				1,015
Deferred taxes
Domestic taxes			(91	)			(110	)			180
Foreign taxes			(48	)			(40	)			(18	)
			(139	)			(150	)			162
Income tax expense			1,190				1,285				1,177

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,
		2026				2025				2024
Profit before income taxes			4,506				4,447				4,346
Enacted tax rates in India			25.17	%			25.17	%			34.94	%
Computed expected tax expense			1,137				1,119				1,519
Tax effect due to non-taxable income for Indian tax purposes			—				—				(363	)
Overseas taxes			126				131				136
Tax provision (reversals)			(93	)			16				(113	)
Effect of differential tax rates			(8	)			(9	)			(69	)
Effect of exempt non-operating income			(1	)			(4	)			(6	)
Effect of unrecognized deferred tax assets			11				19				25
Effect of non-deductible expenses			38				33				20
Others			(20	)			(20	)			28
Income tax expense			1,190				1,285				1,177

Summary of Expiration of Unused Tax Losses

The following table provides details of expiration of unused tax losses for fiscal 2026:


(Dollars in millions)
Year
2027			15
2028			39
2029			78
2030			51
2031			20
Thereafter			310
Total			513

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

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, 2026, and March 31, 2025:


(Dollars in millions)
		As of
		March 31, 2026				March 31, 2025
Income tax assets			263				538
Current income tax liabilities			(594	)			(567	)
Net current income tax assets / (liabilities) at the end			(331	)			(29	)

The gross movement in the current income tax assets / (liabilities) for fiscal 2026, 2025 and 2024 is as follows:


		(Dollars in millions)
		Year ended March 31,
		2026				2025				2024
Net current income tax assets / (liabilities) at the beginning			(29	)			702				374
Income tax paid (net)			973				662				1,114
Current income tax expense			(1,329	)			(1,435	)			(1,015	)
Interest income on income tax refund			41				39				234
Income tax on other comprehensive income			—				2				—
Income tax benefit arising on exercise of stock options			5				4				—
Tax impact on buyback expenses			2				—				—
Translation differences			6				(3	)			(5	)
Net current income tax assets / (liabilities) at the end			(331	)			(29	)			702

Summary of Movement in Gross Deferred Income Tax Assets / Liabilities

The movement in gross deferred income tax assets / liabilities (before set off) for fiscal 2026 is as follows:


																		(Dollars in millions)
		Carrying value as of April 1, 2025				Changes through profit and loss				Addition through business combination				Changes through OCI				Translation difference				Carrying value as of March 31, 2026
Deferred income tax assets / (liabilities)
Property, plant and equipment			28				(10	)			—				—				(4	)			14
Lease liabilities			18				10				—				—				(2	)			26
Accrued compensation to employees			9				5				—				—				—				14
Trade receivables			26				(3	)			—				—				(2	)			21
Compensated absences			83				14				—				—				(8	)			89
Post sales client support			8				(3	)			—				—				—				5
Credits related to branch profits			93				(7	)			—				—				(4	)			82
Derivative financial instruments			(4	)			17				—				—				1				14
Intangibles			8				1				—				—				—				9
Intangibles arising on business combinations			(80	)			20				(5	)			—				(5	)			(70	)
Branch profit tax			(124	)			16				—				—				4				(104	)
SEZ reinvestment reserve			(168	)			61				—				—				13				(94	)
Interest receivable on income tax refund			(8	)			7				—				—				—				(1	)
Others			39				11				1				4				2				57
Total Deferred income tax assets / (liabilities)			(72	)			139				(4	)			4				(5	)			62

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 deferred income tax assets and liabilities is as follows:


		(Dollars in millions)
		As of
		March 31, 2026				March 31, 2025
Deferred income tax assets after set off		239				130
Deferred income tax liabilities after set off			(177	)			(202	)