XML 48 R31.htm IDEA: XBRL DOCUMENT v3.24.2
Income taxes
 12 Months Ended
Mar. 31, 2024
Income taxes
22. Income taxes
Income tax expense is comprised of the following:
 
    
Fiscal year ended March 31,
  
    
2022
     
2023
     
2024
     
2024
  
                             
    
(In millions)
  
Current tax expense
    Rs.  142,446.5      Rs.  156,782.9      Rs.  140,308.9      US$  1,683.6  
Deferred tax expense/ (benefit)
      (9,887.3 )       12,280.9        (57,133.2 )      (685.5 )
Interest on income tax refund
      —       (2,946.4 )      (5,348.6 )      (64.2 )
 
  
 
 
     
 
 
     
 
 
     
 
 
  
Income tax expense
    Rs. 132,559.2      Rs. 166,117.4      Rs. 77,827.1      US$ 933.9  
  
 
 
     
 
 
     
 
 
     
 
 
  
Income tax (expense)/ benefit recorded in other comprehensive income
was Rs. 15,129.2,
Rs.
16,980.0
 million and Rs.
(17,828.6)
 million for the fiscal years ended
March 31, 2022,
 
March 31, 2023 and March 31, 2024, respectively.
Income before income tax expense and income tax expense are substantially all from India.
 
 
Taxes at the Indian statutory income tax rate, the income tax rate of the Bank’s country of domicile, to income tax expense as reported:
 
 
  
Fiscal year ended March 31,
 
 
  
2022
 
 
2023
 
 
2024
 
 
2024
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
(In millions)
 
Income before income tax expense
    Rs. 519,162.2     Rs. 662,381.8     Rs. 705,459.0     US$ 8,465.0  
Statutory income tax rate
      25.17 %      25.17 %      25.17 %      25.17 % 
Expected income tax expense
      130,662.7       166,708.3       177,549.9       2,130.4  
Adjustments to reconcile expected income tax to actual tax expense
         
Interest on income tax refund
      —      (2,204.9 )     (4,125.0 )      (49.5 ) 
Stock-based compensation
      3,493.1       1,645.9       (10,645.6 )     (127.7 )
Income subject to rates other than the statutory income tax rate
      (2,347.6 )      (6.8 )     (1,262.0 )     (15.1 )
Special reserve
      —      —      (5,143.2 )     (61.7 )
Unrecognised tax benefit of earlier years including consequential tax credit pursuant to favourable orders received recognised
                  (80,874.4 )     (970.4 )
Other, net
      751.0       (25.1 )     2,327.4     27.9
  
 
 
    
 
 
    
 
 
    
 
 
  
Income tax expense
    Rs. 132,559.2     Rs. 166,117.4     Rs.  77,827.1     US$  933.9  
  
 
 
    
 
 
    
 
 
    
 
 
  
The tax effects of significant temporary differences are as follows:
 
 
  
As of March 31,
 
 
  
2023
 
  
2024
 
  
2024
 
 
  
 
 
  
 
 
  
 
 
 
  
(In millions)
 
Tax effect of:
         
Deductible temporary differences:
         
Allowance for credit losses
    Rs. 74,143.7      Rs. 43,093.6      US$ 517.1  
Investments AFS debt securities
      25,117.0        7,704.7        92.4  
Lease liabilities
      24,578.8        32,034.7        384.4  
Employee benefits
      709.9        4,632.2        55.6  
Borrowings
    1.4      10,714.9        128.6  
Stock based compensation
      —         20,166.2        241.9  
Others
      5,458.1       
320.1

       
3.9
  
  
 
 
     
 
 
     
 
 
  
Deferred tax asset
      130,008.9        118,666.4        1,423.9  
  
 
 
     
 
 
     
 
 
  
Taxable temporary differences:
         
ROU Asset
      24,578.8        32,009.3        384.1  
Loan origination cost
    7,070.1      7,541.1        90.5  
Intangible assets
      —        313,272.2        3,759.0  
Investments, others
      8,304.6        53,998.2        647.9  
Deferred tax liability
      39,953.5        406,820.8        4,881.5  
  
 
 
     
 
 
     
 
 
  
Net deferred tax asset/ (liability)
    Rs. 90,055.4      Rs.  (288,154.4 )
 
    US$  (3,457.6 )
 
  
 
 
     
 
 
     
 
 
  
Management believes that the realization of the recognized deferred tax assets
is
more likely than not and the realization is based on a combination of reversing taxable temporary differences and expectations as to future pre-tax income.
 
 
The total unrecognized tax benefit as of March 31, 2023 and
March 
31, 2024 is Rs. 48,792.1 million and Rs. 22,042.3 million, respectively. The major income tax jurisdiction for the Bank is India. The open tax years (first assessment by the taxing authorities) are pending from fiscal year 2019 onwards. However, appeals filed by the Bank are pending with various local tax authorities in India for earlier tax years.
A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows:
    
Fiscal year ended March 31,
  
    
2022
     
2023
     
2024
     
2024
  
                             
           
(In millions)
  
Opening balance
      Rs. 43,048.0      Rs. 46,774.3      Rs. 48,792.1      US$ 585.5  
Increase related to acquisition of eHDFC
      —         —       52,980.5      635.7
Decrease related to prior year tax positions
      (1,985.0 )       —         (80,874.4 )       (970.4 ) 
Increase related to current year tax positions
      5,711.3        2,017.8        1,144.1        13.7  
  
 
 
     
 
 
     
 
 
     
 
 
  
Closing balance
      Rs. 46,774.3      Rs.  48,792.1      Rs.  22,042.3      US$  264.5  
  
 
 
     
 
 
     
 
 
     
 
 
  
The Bank’s total unrecognized tax benefits, if recognized, would reduce the income tax expense by Rs. 48,792.1 million and Rs. 22,042.3 million as of March 31, 2023 and March 31, 2024, respectively, and thereby would affect the Bank’s effective tax rate. All of the Bank’s unrecognized tax benefits are presented as unrecognized refund claims.
Significant changes in the amount of unrecognized tax benefits within the next 12 months cannot be reasonably estimated as the changes would depend upon the progress of tax examinations with various tax authorities.