GSK_Annual_Report_2021

Notes to the Standalone Financial Statements for the year ended March 31, 2021 (contd.) Annual Report 2020-21 131 Note 45 : Tax expense (a) Amounts recognised in the Statement of Profit and Loss ( ` in lakhs) Particulars As at March 31, 2021 As at March 31, 2020 Current tax Current tax on profits for the year 184,30.17 235,31.46 Current tax on account of earlier years - 24,85.62 Total current tax expense 184,30.17 260,17.08 Deferred tax In respect of current year 7,86.69 (64,14.45) Adjustment to deferred tax attributable to change in income tax rate - 16,42.04 Total Deferred tax (benefit) / expense 7,86.69 (47,72.41) Total tax expense 192,16.86 212,44.67 (b) Amounts recognised in Other Comprehensive Income (OCI) Particulars Year ended March 31, 2021 Year ended March 31, 2020 Before tax Tax (expense) / benefit Net of tax Before tax Tax (expense) / benefit Net of tax Items that will not be reclassified to the Statement of Profit and Loss Remeasurements of the defined benefit plans (2,73.74) 68.90 (2,04.84) (4,56.06) 64.27 (3,91.79) (2,73.74) 68.90 (2,04.84) (4,56.06) 64.27 (3,91.79) (c) Reconciliation of effective tax rate ( ` in lakhs) Particulars As at March 31, 2021 As at March 31, 2020 Profit before tax 549,73.62 322,49.93 Tax using the Company’s domestic tax rate at 25.168% on Normal Profit 137,89.43 (56,45.44) Tax using the Company’s domestic tax rate in terms of Long Term Capital Gain at 22.88% 42.12 125,11.01 Total Tax 138,31.55 68,65.57 Tax effect of amounts which are not deductible / (taxable) in calculating taxable income: Corporate social responsibility expenditure 2,59.98 1,74.02 Donations - 1,00.08 Due to change in income tax rate from 34.944% to 25.168% - 16,42.04 Impairment of assets 52,60.11 175,40.33 Difference in rate on account of capital gain tax and Indexation - (63,65.55) Gratuity expense deductible on actual payment basis - (13,23.57) Actual utilisation of Vemgal related cost (1,77.00) - Other items 42.22 1,26.13 Tax effect on account of earlier years: Current tax on account of earlier years: - 24,85.62 Total tax Expense 192,16.86 212,44.67 Consequent to the reconciliation items shown above, the effective tax rate is 34.96% (Financial Year 2019-20: 65.88%)