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Shaping the future of software driven business
Unconsolidated Financials •
305
Amounts for the current and previous year are as follows:
(In
`
Million)
As at
March 31, 2019
March 31, 2018
Plan assets
831.31
773.89
Defined benefit obligation
(925.65)
(727.97)
Surplus / (Deficit)
(94.34)
45.92
Experience adjustments on plan liabilities - Loss / (gain)
68.82
(142.97)
30. Income taxes
The reconciliation of estimated income tax expense at Indian statutory income tax rate to income tax expense reported in
statement of profit and loss is as follows:
For the year ended
March 31, 2019
(In
`
Million)
March 31, 2018
(In
`
Million)
Profit before tax
4,383.76
4,552.16
Enacted tax rate in India
34.94%
34.61%
Computed tax expense at enacted tax rate
1,531.86
1,575.41
Effect of exempt income
(171.77)
(120.26)
Effect of non-deductible expenses
21.77
16.57
Effect of concessions (Tax holidays)
(197.52)
(234.94)
Effect of concessions (R&D allowance)
21.85
(78.71)
Effect of Short provision of earlier years (Net)
65.00
(3.99)
Effect of diffferent tax rates for different heads of income
(30.69)
(6.86)
Others
(6.82)
(16.23)
Income tax expense
1,233.68
1,130.99
Note:
The Company benefits from the tax holidays available for units set up under the Special Economic Zone Act, 2005. These tax
holidays are available for a period of fifteen years from the date of commencement of operation. Under the SEZ Scheme, the
Unit which begins providing services on or after April 1, 2005 will be eligible for deduction of 100% of profits or gains derived
from export of services for the first five years from the financial year in which the unit commenced the provision of services,
50% of such profits or gains for a further period of five years. Upto 50% of such profits and gains is also available for the fur-
ther period of five years subject to creation of a Special Economic Zone re-investment Reserve out of the profit for the eligible
SEZ units and utilization of such reserve by the Company for acquiring new plant and machinery for the purpose of its business
as per the provisions of the Income Tax Act, 1961.
Notes forming part of financial statements (Contd.)