Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 288

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 288
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-Funded Warrant, as applicable, and one Series A Warrant should be the U.S. holder’s initial tax basis in such common
share or Pre-Funded Warrant, as applicable, and one Series A Warrant.

The foregoing treatment of
the Unit, common shares or Pre-Funded Warrants, as applicable, and Series A Warrants and a U.S. holder’s purchase price allocation
are not free from doubt and are not binding on the IRS or a court of law. Because there are no authorities that directly address instruments
that are similar to the Unit, no assurance can be given that the IRS or a court of law will agree with the characterization described
above or the discussion below. Accordingly, U.S. holders are urged to consult their own tax advisors regarding the tax consequences with
respect to their Units. The balance of this discussion assumes that the characterization of the Units described above is respected for
U.S. federal income tax purposes.

U.S. Federal Income Taxation of U.S. Holders of Pre-Funded Warrants

Although not entirely free
from doubt, the Company believes that a Pre-Funded Warrant should be treated as a common share for U.S. federal income tax purposes, and
a holder of a Pre-Funded Warrant therefore should generally be taxed in the same manner as a holder of a common share, as described below.
Accordingly, no gain or loss should be recognized upon the exercise of a Pre-Funded Warrant and, upon exercise, the holding period of
a Pre-Funded Warrant should carry over to the common share received. Similarly, the tax basis of the Pre-Funded Warrant should carry over
to the common share received upon exercise, increased by the exercise price per share.

However, the position that
a Pre-Funded Warrant should be treated as a common share is not binding on the IRS, and the IRS may treat the Pre-Funded Warrants as warrants
to acquire our common shares. U.S. holders should consult their own tax advisors regarding the U.S. federal tax consequences of an investment
in the Pre-Funded Warrants. The balance of this discussion generally assumes that the characterization described above is respected for
U.S. federal income tax purposes and the discussion below, to the extent it pertains to common share, is generally intended also to pertain
to Pre-Funded Warrants.

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Certain Adjustments to the Pre-Funded Warrants

The terms of each Pre