Reliance And SBI To TCS: Top Tax-Paying Companies Of FY23

For a lot of companies, fiscal 2022-23 was a year of profit, with 20 constituents of the Nifty 50 beating their Ebitda estimates for the year, according to Bloomberg data.

But higher income also translate into more taxes. And banking companies lead with four lenders ranking among the top corporate taxpayers of FY23.

Here's how the index fared:

India's largest company by market cap and the most profitable company for the year, Reliance Industries Ltd., took the top spot at Rs 20,713 crore of tax paid for the year.

Banking giants State Bank of India and HDFC Bank Ltd. took the second and third position with Rs 17,649 crore and Rs 15,350 crore of tax, respectively.

While companies with a higher overall revenue tend to pay higher taxes, here are the outliers that paid much more than their peers as a percentage of profit before tax.

Tata Steel Ltd. stands way ahead of the rest, paying 55.72% of its pre-profit income in the form of taxes.

This figure appears inflated due to the high deferred taxes worth Rs 4,798.4 crore, against the current liability of Rs 5,361.3 crore.

Nine companies reported a total tax expense of less than 20% of their pre-tax earnings.

HDFC Life Insurance Co. reported a negative tax due to a tax write-off.

Two companies reported a tax of less than 5% of their profit before tax—Adani Ports and Special Economic Zones Ltd. was at 1.76% due to a write-off in its deferred tax; and SBI Life Insurance Co. was at 2.15%.

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