Tax

Income tax shown on the P&L. India's corporate tax rate is mostly 25% (with the lower 17% concessional rate for new manufacturing) plus surcharge and cess, so the effective tax rate lands in the 25–28% range for most listed companies.

How to read it

Effective tax rate = Tax ÷ Profit Before Tax (PBT)

A steady, narrow band quarter after quarter is what you want. Wide swings need explanation.

Why it swings

• One-time items - deferred tax adjustments, MAT credit utilisation, IND-AS 12 changes. Look at the notes.
• Subsidiary-level tax - a consolidated P&L includes tax from subsidiaries in different jurisdictions. A new SEZ unit may have a tax holiday, dropping the effective rate.
• Switch to new tax regime - companies that moved to the 22% concessional regime under Section 115BAA show a clear drop. Stable thereafter.
• Loss reversal - if the company was loss-making and turned profitable, deferred tax assets get recognised → unusually low (or even negative) tax in one quarter.